# Acala DEX Fees Methodology

## 1. Overview

Fees measures the total value paid by users for executing trades on Acala DEX. These fees are collected to compensate liquidity providers and support the protocol's economic ecosystem. The metric is calculated as a fixed percentage of the total trading volume processed by the decentralized exchange.

## 2. Data sources

- **Blockchain events**: `Swap` events from the `dex` pallet, covering Acala
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Swap event extraction

- **Purpose**: Capture all successful trading activity on Acala DEX
- **Logic**: Successful `Swap` events are filtered from the `dex` pallet. The trader address, input asset, output asset, and respective amounts are extracted from the event data. Assets are identified through a mapping process that accounts for native assets, liquid crowdloan assets, foreign assets, and ERC-20 tokens.
- **Key fields**: `amount_in`, `amount_out`, `token_in`, `token_out`

### Component B: Liquid DOT (LDOT) exchange rate adjustment

- **Purpose**: Ensure trading volumes for liquid staking assets are accurately valued against their underlying collateral
- **Logic**: An exchange rate for LDOT is calculated by dividing the total underlying DOT backing the system (staked DOT plus DOT in the bond pool) by the total LDOT issuance (including voided LDOT). This exchange rate is applied to any swap involving LDOT to normalize the volume to its underlying DOT value.
- **Key fields**: `total_staking_bonded`, `to_bond_pool`, `total_issuance`, `total_void_liquid`

### Component C: Trading volume and fee calculation

- **Purpose**: Determine the total economic activity and the resulting fees
- **Logic**: Trading volume is determined by taking the volume of the swap assets. A 3% fee rate is applied to the calculated trading volume for each swap. Amounts are normalized by the decimal precision associated with each specific asset.
- **Key fields**: `amount_in`, `amount_out`, `trading_volume`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize fee values to USD for cross-asset comparison
- **Logic**: The calculated fee amounts are multiplied by end-of-day price feeds for the respective assets. Fees are then aggregated by day using UTC boundaries.
- **Key fields**: `price_usd`, `block_timestamp`

*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

Exchanges (DEX)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Acala is a specialized stablecoin and liquidity blockchain powered by Polkadot Relay chain.

ACA holders own and govern the protocol. Acala’s investors include Pantera Capital, Coinbase Ventures, and Polychain Capital.

Acala DEX

Archived

Fees

Fees

Chain breakdown