# Acala Liquid Staking Fees Methodology

## 1. Overview

Fees for Acala Liquid Staking measures the net value of assets flowing into the protocol treasury from liquid staking operations. This metric captures the surplus of asset deposits over withdrawals within the treasury, reflecting the economic value generated by the protocol's liquid staking mechanisms. Values are normalized to the underlying DOT-equivalent value for liquid staked assets and converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `Deposited` and `Withdrawn` events from `tokens` pallets, covering Acala Substrate
- **External data**: End-of-day price feeds for assets and protocol-specific endpoints for staking balances and issuance

## 3. Step-by-step calculation

### Component A: Treasury transaction extraction

- **Purpose**: Captures the raw inflows and outflows from the protocol treasury related to liquid staking.
- **Logic**: `Deposited` and `Withdrawn` events are parsed from the `tokens` pallet. Transactions are filtered to include only those where the account address matches the Acala Liquid Staking treasury (`23M5ttkmR6Kco5p3LFGKMpMv4zvLkKdUQWW1wGGoV8zDX3am`). The associated asset symbols and raw amounts are extracted for each event.
- **Key fields**: `amount` (raw value), `token_symbol` (asset identification), `account` (treasury address)

### Component B: LDOT exchange rate calculation

- **Purpose**: Determines the ratio used to value liquid staked assets against their underlying collateral.
- **Logic**: The total underlying DOT backing the system is calculated by summing DOT staked and DOT waiting to be staked, utilizing data from protocol-specific staking and bond pool endpoints. The total supply of LDOT is determined by summing total issuance and voided LDOT. The exchange rate is calculated by dividing the total DOT backing by the total LDOT supply.
- **Key fields**: `total_staking_bonded`, `to_bond_pool`, `total_issuance`, `total_void_liquid`

### Component C: Normalization and USD conversion

- **Purpose**: Converts raw event data into standardized USD values.
- **Logic**: Asset amounts are normalized by decimal precision. For LDOT assets, the DOT-equivalent value is calculated by applying the exchange rate derived in Component B. Normalized amounts are multiplied by end-of-day price feeds. Daily net deposits are calculated by subtracting the total value of treasury withdrawals from the total value of treasury deposits.
- **Key fields**: `amount` (normalized), `ldot_exchange_rate`, `price_usd` (end-of-day price)

### Component D: Final aggregation

- **Purpose**: Aggregates the daily net treasury flows into the final Fees metric.
- **Logic**: Daily net deposits are summed to represent the total fees generated by Acala Liquid Staking. Data is aggregated by date with UTC day boundaries. A zero-filling strategy is applied to ensure a continuous time series for periods without recorded events.
- **Key fields**: `timestamp`, `fees` (net deposits)

*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

Liquid staking

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 Liquid Staking

Archived

Fees

Fees

Chain breakdown