Overcollateralized borrowers deposit funds into Vesta Finance and borrow VST stablecoin.

Vesta Finance is a non-custodial stablecoin protocol built on Arbitrum. Vesta Finance was founded by Mikey Milken and launched in 2022.

VSTA tokenholders own and govern the protocol. They currently take all of the total interest paid by borrowers (revenue).

governance

github

twitter

discord

etherscan

website

Stablecoin issuers

Vesta Finance

# Vesta Finance Expenses Methodology

## 1. Overview

Vesta expenses represents the total daily USD value of token incentives paid by the Vesta Finance protocol to users. This metric captures the protocol's operating costs in the form of token rewards distributed to participants in the stablecoin ecosystem. The calculation aggregates VST (stablecoin) and VSTA (governance token) incentives paid through various reward mechanisms and converts them to USD values.

## 2. Data sources

The calculation relies on several raw data sources from the Vesta protocol on Arbitrum:

- **VST incentive events**: Parsed `UserClaimed` events from Vesta's SavingModule contract, representing stablecoin rewards claimed by users
- **VSTA reward events**: Two types of parsed events - `VSTAPaidToDepositor` events from StabilityPool contract for stability provider rewards, and `RewardPaid` events from VestaFarming contract for liquidity provider rewards
- **VST price data**: Parsed `TokenPriceUpdated` events from Vesta's PriceFeed contract providing protocol-specific VST price updates
- **External price feeds**: CoinGecko API price feeds for VESTA token USD conversion
- **Token metadata**: Contract addresses for VST (`0x64343594ab9b56e99087bfa6f2335db24c2d1f17`) and VSTA (`0xa684cd057951541187f288294a1e1c2646aa2d24`) tokens

All blockchain data originates from Arbitrum network events from Vesta Finance V1 protocol contracts.

## 3. Step-by-step calculation

### Component A: VST incentive extraction
- **Purpose**: Captures VST stablecoin rewards paid through the savings module
- **Logic**: Extracts `UserClaimed` events from Vesta's SavingModule contract on Arbitrum. Each event contains the `claimed` amount in wei (18 decimal places). The raw amount is divided by 10^18 to convert to standard token units. Events are categorized with account name 'VST: Saving Module' and classified under business line 'Stablecoin issuer'
- **Key fields**: `block_timestamp` for timing, `claimed` amount for incentive value, transaction and log identifiers for deduplication

### Component B: VSTA incentive extraction  
- **Purpose**: Captures VSTA governance token rewards from stability and liquidity provision
- **Logic**: Combines two event types from Arbitrum. First, extracts `VSTAPaidToDepositor` events from StabilityPool contract where stability providers receive VSTA rewards, using the `VSTA` field. Second, extracts `RewardPaid` events from VestaFarming contract for liquidity mining rewards, using the `reward` field. Both amounts are converted from wei by dividing by 10^18. Events are categorized as either 'VSTA: Stability Provider rewards' or 'VSTA: Liquidity Provider rewards'
- **Key fields**: `block_timestamp` for timing, `VSTA` or `reward` amounts for incentive values, event-specific identifiers

### Component C: VST price feed creation
- **Purpose**: Establishes daily USD price history for VST stablecoin
- **Logic**: Extracts `TokenPriceUpdated` events from Vesta's PriceFeed contract specifically for VST token address. Raw prices are converted from wei to USD by dividing by 10^18. Creates daily price averages by truncating timestamps to day boundaries. Pads missing historical data with 0.99 USD starting value from 2022-01-01. Forward-fills any gaps in daily price history to ensure complete coverage
- **Key fields**: `price` field converted to `price_usd`, `token` address for filtering, daily timestamp boundaries

### Component D: Token incentive aggregation
- **Purpose**: Combines and converts all token incentives to USD values
- **Logic**: Processes VST incentives by joining daily amounts with VST price feed on matching dates and token addresses, multiplying token amounts by USD prices. Processes VSTA incentives using CoinGecko price conversion macro with 'vesta-finance' identifier. Truncates all timestamps to daily boundaries and unions VST and VSTA data together. Maintains business metadata classifications and account categorizations
- **Key fields**: Daily `timestamp`, `chain` as 'arbitrum', `amount` in USD values, business classification fields

### Final aggregation
- **Combining components**: All USD-converted token incentives are aggregated by day, chain, and business metadata. The data flows through finalization macros that standardize schema, validate identifiers, and ensure complete daily coverage
- **Currency conversion**: VST amounts use protocol-specific price feeds with forward-filling for missing days, while VSTA amounts use CoinGecko external price feeds
- **Time aggregation**: All events are truncated to daily boundaries (UTC), creating single daily expense values per chain and business category
- **Final calculation**: Token incentives are directly treated as protocol expenses. The final metric sums all daily USD values of VST and VSTA incentives paid, representing the protocol's daily operating costs for user rewards and incentives

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

Vesta FinanceVSTA

Expenses

Expenses

Competitive landscape