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).

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Stablecoin issuers

Vesta Finance

# Vesta Finance Token incentives Methodology

## 1. Overview

This metric measures the USD value of token incentives distributed by Vesta Finance protocol to users. Vesta Finance is a stablecoin issuer operating on Arbitrum that distributes two types of tokens as incentives: VST (their stablecoin) for savings module participation and VSTA (their governance token) for stability pool deposits and liquidity provision. The calculation aggregates daily incentive distributions across all reward programs and converts them to USD values using appropriate price feeds.

## 2. Data sources

The calculation relies on several types of blockchain and external data:

- **Vesta protocol events on Arbitrum**: Parsed smart contract events from Vesta Finance's reward distribution contracts including savings module claims, stability pool rewards, and farming rewards
- **Vesta internal price feeds**: VST token price updates from Vesta's on-chain price oracle system
- **External price data**: End-of-day CoinGecko price feeds for VSTA token pricing
- **Token metadata**: Token addresses, decimal configurations, and contract specifications for VST and VSTA tokens
- **Chain availability data**: Token Terminal's chain availability filters to ensure data completeness

## 3. Step-by-step calculation

### Component A: VSTA token incentive collection
- **Purpose**: Captures VSTA governance token rewards distributed through stability pool deposits and liquidity farming programs
- **Logic**: Extracts two types of VSTA reward events from Arbitrum. First, stability provider rewards are collected from `StabilityPool_VSTAPaidToDepositor` events using the `VSTA` field to get reward amounts. Second, liquidity provider rewards are gathered from `VestaFarming_RewardPaid` events using the `reward` field. All amounts are converted from 18 decimal places to human-readable format by dividing by 10^18. Each event type is assigned a distinct account name for categorization: "VSTA: Stability Provider rewards" and "VSTA: Liquidity Provider rewards". All rewards are classified under the stablecoin issuer business line and tagged as version v1
- **Key fields**: `VSTA` reward amount from stability pool events, `reward` amount from farming events, `block_timestamp` for timing, transaction identifiers for deduplication

### Component B: VST token incentive collection  
- **Purpose**: Captures VST stablecoin rewards distributed through the savings module program
- **Logic**: Extracts VST rewards from `SavingModule_UserClaimed` events on Arbitrum using the `claimed` field to determine reward amounts. Amounts are converted from 18 decimal places to human-readable format. All VST rewards are categorized under a single account name "VST: Saving Module" and classified as stablecoin issuer business line with version v1 tagging
- **Key fields**: `claimed` reward amount, `block_timestamp` for timing, transaction identifiers for deduplication

### Component C: VST price feed creation
- **Purpose**: Establishes daily USD price feeds for VST token to enable accurate conversion of VST rewards
- **Logic**: Collects VST price updates from `PriceFeed_TokenPriceUpdated` events using the `price` field, converting from 18 decimal places. Daily price averages are calculated by truncating block timestamps to day boundaries and averaging all price updates within each day. To ensure complete historical coverage, a baseline price of $0.99 is used for early periods before price feed data became available. Missing days are filled using forward-fill logic to maintain continuous price coverage
- **Key fields**: `price` from price update events, daily aggregated averages, forward-filled values for gaps

### Component D: USD conversion and aggregation
- **Purpose**: Converts both token types to USD values and combines them into a unified incentive metric
- **Logic**: VSTA rewards are converted to USD using the `convert_to_usd_cg` macro which applies end-of-day CoinGecko price feeds for the VESTA-finance token. VST rewards are converted by multiplying token amounts with corresponding daily VST prices from the internal price feed. Both conversion processes aggregate rewards to daily timestamps by truncating block timestamps to day boundaries. The results are combined using a union operation to create a single dataset containing all token incentives in USD values
- **Key fields**: USD-converted `amount` values, daily `timestamp` boundaries, combined reward records from both token types

### Final aggregation
- **Combining components**: All USD-converted token incentive records are merged into a single time series, maintaining separate account classifications for different reward types while summing total daily incentive values
- **Currency conversion**: VSTA amounts converted using end-of-day CoinGecko prices, VST amounts converted using daily averaged internal price feeds with forward-fill for missing data
- **Time aggregation**: All incentive events aggregated to daily boundaries using timestamp truncation, ensuring consistent daily reporting periods
- **Final calculation**: The metric represents the total USD value of token incentives distributed by Vesta Finance each day, calculated as the sum of all VSTA stability and liquidity rewards plus all VST savings module rewards, with standardized schema enforcement and gap-filling applied through the finalization macro

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

Value of native tokens distributed as incentives.

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Token incentives

Token incentives

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