Liquidity providers deposit funds into Zyberswap and receive trading fees from traders (supply-side fees).

Zyberswap is a non-custodial exchange protocol built on Arbitrum. Zyberswap was founded by anonymous team and launched in 2023.

ZYB tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Zyberswap

# Zyberswap Expenses Methodology

## 1. Overview

Zyberswap expenses represent the total cost of liquidity incentives paid to users across both V2 and V3 versions of the protocol. These expenses consist entirely of ZYB token rewards distributed through liquidity mining programs on Arbitrum. The metric captures the daily USD value of all token incentives paid by Zyberswap to encourage liquidity provision.

## 2. Data sources

The calculation uses several key data sources:
- **Blockchain events**: Parsed `RewardClaimed` events from Zyberswap V3's EternalFarming contract on Arbitrum
- **Token transfer data**: Arbitrum token transfer events filtered for transfers from the ZyberChef contract
- **External data**: End-of-day price feeds for ZYB token conversion to USD
- **Token metadata**: Token decimal information for accurate amount calculations
- **Contract mapping**: Static dimension data mapping contract addresses to readable names

## 3. Step-by-step calculation

### Component A: V3 liquidity incentives
- **Purpose**: Captures liquidity mining rewards distributed through Zyberswap V3's EternalFarming mechanism
- **Logic**: Extracts `RewardClaimed` events from the EternalFarming contract, filtering specifically for rewards paid in ZYB tokens. Each event contains the reward recipient address and the reward amount. The data is classified as V3 exchange AMM activity in the DEX business segment.
- **Key fields**: Event timestamp (`block_timestamp`), recipient address (`address`), reward amount (`reward`), and reward token address (`rewardAddress`)

### Component B: V2 liquidity incentives  
- **Purpose**: Captures liquidity mining rewards distributed through Zyberswap V2's ZyberChef mechanism
- **Logic**: Identifies ZYB token transfers where the sender is the ZyberChef contract address. These transfers represent reward distributions to liquidity providers. The receiving address represents the reward recipient, and the transfer value is the reward amount. The data is classified as V2 exchange AMM activity.
- **Key fields**: Transfer timestamp (`block_timestamp`), recipient address (`to_address`), sender address (`from_address`), and transfer amount (`value`)

### Component C: Account classification
- **Purpose**: Maps contract addresses to human-readable names for better data organization
- **Logic**: A static dimension table maps the EternalFarming contract address to "Ethernal Farming" and the ZyberChef contract address to "ZyberChef". This provides context about which incentive mechanism distributed each reward.
- **Key fields**: Contract address (`account_address`) and descriptive name (`account_name`)

### Final aggregation
- **Combining components**: V2 and V3 incentive streams are combined using a union operation, with each stream maintaining its version classification and standardized field structure
- **Account mapping**: The combined incentive data is joined with the account dimension using contract addresses to add readable names
- **Time aggregation**: All incentive amounts are aggregated daily using timestamp truncation to day boundaries
- **Currency conversion**: ZYB token amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied based on token metadata
- **Data quality**: The finalization macro ensures complete time series by filling missing days with zero values and validates data integrity
- **Final calculation**: The daily sum of all USD-converted ZYB token incentives represents the total expenses for each day

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

Total project operating and incentive expenses.

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Expenses

Expenses

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