Liquidity providers deposit collateral and mint volatility tokens. Traders can then purchase these volatility tokens to express views on market volatility.

Volmex enables VIX-like indices for crypto assets and trading functionality on Ethereum. Volmex was founded by Cole Kennelly and launched in 2021.

The Volmex team and investors own and govern the protocol. They currently charge a minting and redemption fee (revenue). Volmex’s investors include Three Arrows Capital, Robot Ventures, CMS Holdings etc.

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Volmex

# Volmex Token incentives Methodology

## 1. Overview

The Volmex token incentives metric measures token-based rewards distributed to users of the Volmex protocol. Currently, Volmex does not distribute any token incentives, so this metric returns zero for all time periods and chains. The metric maintains the same temporal and dimensional structure as other Volmex metrics to ensure consistency in reporting frameworks.

## 2. Data sources

The calculation uses the structural framework from Volmex's fee calculation, which is based on:
- **Volmex vault events**: Parsed `CollateralToken_Collateralized_event` and `CollateralToken_Redeemed_event` logs from Ethereum, Arbitrum, and Polygon chains
- **Vault configuration data**: Static configuration defining Volmex vault addresses, supported collateral tokens (DAI, USDC), and chain mappings
- **Temporal framework**: Daily timestamp boundaries derived from the trading fee calculation structure

## 3. Step-by-step calculation

### Component A: Base structure extraction
- **Purpose**: Establish the temporal and dimensional framework for token incentives reporting
- **Logic**: Extract `timestamp`, `timestamp_grain`, `product_id`, and `chain_id` from the Volmex fees calculation to maintain consistent reporting dimensions across all Volmex metrics
- **Key fields**: `timestamp` (daily boundaries), `chain_id` (Ethereum, Arbitrum, Polygon), `product_id` (vault identifiers)

### Component B: Token incentives assignment
- **Purpose**: Set token incentive values for all periods and chains
- **Logic**: Assign a value of 0 to the `token_incentives` field for every record, indicating that Volmex currently does not distribute token-based rewards to users
- **Key fields**: `token_incentives` (always 0)

### Final aggregation
- **Combining components**: The base temporal structure is combined with the zero token incentives values to create a complete dataset
- **Currency conversion**: No conversion needed since all values are zero
- **Time aggregation**: Daily aggregation boundaries are maintained from the base structure
- **Final calculation**: Token incentives equals 0 for all time periods and chains where Volmex operates

*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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