Liquidity providers deposit funds into zkSwap and receive trading fees from traders (supply-side fees). Traders receive token rewards for their trades through the Swap2Earn incentive program (token incentives).

zkSwap Finance is a non-custodial Swap-to-Earn DeFi exchange protocol built on zkSync Era (originally a fork of Uniswap). zkSwap Finance was founded by pseudonymous ThunderNoah, etc., and launched in 2023. 

ZF token holders own and govern the protocol via Snapshot vote. They currently take a cut of the total trading fees paid by traders (revenue).

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Exchanges (DEX)

zkSwap Finance

# zkSwap Finance Token incentives Methodology

## 1. Overview

The zkSwap token incentives metric measures the daily USD value of token rewards distributed through the zkSwap protocol on zkSync Era. This includes both user-claimed rewards from the Swap2Earn program and protocol-level reward distributions to staking and liquidity incentive contracts. The metric captures all forms of ZF token incentives, providing a comprehensive view of the protocol's reward distribution activity.

## 2. Data sources

- **Blockchain events**: Parsed zkSync Era `Claimed` events from the Swap2EarnRewarder contract
- **Token transfer data**: zkSync Era ERC-20 token transfer records, specifically filtering for ZF token transfers
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision
- **Protocol contracts**: Specific zkSwap incentive contract addresses including DAO staking rewards and liquidity incentive distributors

## 3. Step-by-step calculation

### Component A: Swap2Earn reward claims
- **Purpose**: Captures user claims of trading rewards from the Swap2Earn program
- **Logic**: Filters parsed `Claimed` events from the Swap2EarnRewarder contract on zkSync Era. Extracts the `amount` field representing claimed rewards and the recipient `address`. All events are tagged with the ZF token address `0x31c2c031fdc9d33e974f327ab0d9883eae06ca4a` and classified under the 'Swap2Earn' account name
- **Key fields**: `amount` (reward quantity), `address` (claiming user), `block_timestamp` (claim time), `transaction_hash` and `log_index` for event identification

### Component B: Protocol reward mints
- **Purpose**: Captures protocol-level reward distributions through token minting to incentive contracts
- **Logic**: Filters zkSync Era token transfer events for ZF token transfers originating from the null address `0x0000000000000000000000000000000000000000` (indicating token minting) to two specific incentive contracts: DAO staking rewards contract `0x4ca2ac3513739cebf053b66a1d59c88d925f1987` and liquidity incentives contract `0x9f9d043fb77a194b4216784eb5985c471b979d67`. Account names are assigned based on the recipient contract - 'DAO Staking Reward' or 'Liquidity Reward'
- **Key fields**: `value` (minted amount), `to_address` (recipient contract), `from_address` (verified as null for minting), `token_address` (verified as ZF token)

### Final aggregation
- **Combining components**: Both reward claims and mints are unioned into a single dataset with standardized schema including daily timestamp truncation, chain identification as 'zksyncera', and consistent business line classifications ('Exchange AMM', 'exchanges', 'dex', 'v1')
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds and corrected for the ZF token's decimal precision through the standard conversion methodology
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation, with gaps filled using a zero-fill strategy to maintain consistent time series
- **Final calculation**: The final metric represents the daily sum of all token incentives (both claimed rewards and minted distributions) converted to USD value, providing the total daily incentive distribution by the zkSwap protocol

*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

Competitive landscape