# Chainlink SVR Fees Methodology

## 1. Overview

Fees measure the total value users pay to use a project’s application. For Chainlink SVR, the recaptured Miner Extractable Value (MEV) from liquidation auctions, which is facilitated via Flashbots MEV-Share, is represented by this metric. Aave's 65% share of these recaptured fees is distributed weekly as native ETH from a Chainlink Gnosis Safe to the Aave Collector contract. The tracking of these fees is utilized to assess the additional economic value generated by Aave's liquidation efficiency and its partnership with Chainlink.

## 2. Data sources

- **Blockchain events**: Native asset transfers from the Chainlink SVR Gnosis Safe and native asset transfers to the Aave Collector V2 contract, covering Ethereum
- **External data**: End-of-day price feeds for native assets and asset metadata

## 3. Step-by-step calculation

### Component A: Smart Value Recapture outflow tracking

- **Purpose**: Identify native asset distributions from the Chainlink SVR Gnosis Safe
- **Logic**: Native asset transfers are filtered to isolate outflows from the Chainlink SVR Gnosis Safe address. Only transfers occurring on or after the launch date of the Chainlink SVR product are included.
- **Key fields**: `block_timestamp` (timing), `amount` (transfer quantities), `account_address` (Gnosis Safe address)

### Component B: Collector inflow tracking

- **Purpose**: Identify native asset receipts by the Aave Collector V2 contract
- **Logic**: Native asset transfers are filtered to isolate inflows to the Aave Collector V2 contract address. Only transfers occurring on or after the launch date of the Chainlink SVR product are included.
- **Key fields**: `block_timestamp` (timing), `amount` (transfer quantities), `account_address` (Aave Collector V2 address)

### Component C: Revenue matching and fee aggregation

- **Purpose**: Match SVR distributions with Collector receipts to determine total fees
- **Logic**: Outflows from the Chainlink SVR Gnosis Safe and inflows to the Aave Collector V2 contract are joined on the unique transaction identifier to ensure exact matching of weekly distributions. The matched native ETH transfer amounts are aggregated daily and designated as protocol revenue. Because Chainlink SVR operates as a direct revenue distribution mechanism to the treasury, supply-side fees are set to zero, meaning total fees are equal to the recaptured revenue.
- **Key fields**: `unique_id` (transaction identifier), `amount` (matched fee quantities)

### Component D: USD conversion and normalization

- **Purpose**: Normalize fee values to USD
- **Logic**: Matched native ETH fee amounts are normalized by decimal precision. The normalized amounts are multiplied by end-of-day native asset prices to convert the values to USD. Daily values are aggregated with UTC day boundaries.
- **Key fields**: `timestamp` (daily granularity), `price_usd` (asset price)

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Lending

Lenders deposit funds into Aave and receive interest payments from borrowers (supply-side fees).

Aave is a non-custodial lending protocol built on Ethereum and other adjacent blockchains. Aave was founded by Stani Kulechov and launched in 2017.

AAVE tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Aave’s investors include ParaFi Capital, Framework Ventures, Three Arrows Capital, etc.

Chainlink SVR

Fees

Fees

Chain breakdown