Liquidity providers deposit funds into Aerodrome and stake their LP tokens to receive AERO tokens in proportion to their share of the votes (token incentives).

Aerodrome is a non-custodial exchange protocol built on Base. Aerodrome was launched by the Velodrome team in 2023.

AERO tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue), while the pools' unstaked liquidity providers earn the remainder of the trading fees (supply-side fees).

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Aerodrome

# Aerodrome Fees Methodology

## 1. Overview

Fees are measured as the total economic value paid by users to interact with Aerodrome's liquidity pools and voting mechanisms. This metric is used to reflect the protocol's capacity to generate value for its ecosystem participants, specifically liquidity providers and voters. Fees are accumulated from trading fees generated across V1, V2, and Slipstream pools, as well as voting incentives (bribes) deposited to direct emissions via the Ignition launchpad and standard voting incentive contracts. These components are aggregated to represent the total fee generation of the protocol.

## 2. Data sources

- **Blockchain events**: `Claim` events from `Pool` contracts, `CollectFees` events from `CLPool` contracts, `PoolCreated` events from `Factory` and `CLPoolFactory` contracts, `GaugeCreated` events from `Voter` contracts, `NotifyReward` events from `BribeVotingReward` and `CLBribeVotingReward` contracts, and `IgnitionEvent` events from `IgnitionRegistry` contracts, covering Base and Arc
- **External data**: End-of-day price feeds and hourly price feeds for assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Trading fee extraction

- **Purpose**: Trading fees claimed from liquidity pools are captured.
- **Logic**: `Claim` events from `Pool` contracts (for V1 and V2) and `CollectFees` events from `CLPool` contracts (for Slipstream) are parsed. The claimed amounts for both assets in the pool (`amount0` and `amount1`) are extracted. These events are joined with pool metadata from `PoolCreated` events from `Factory` and `CLPoolFactory` contracts to identify the assets and their respective decimal precisions.
- **Key fields**: `amount0`, `amount1`, `account_address`, `fee_collector_address`

### Component B: Voting incentive extraction

- **Purpose**: Voting incentives (bribes) deposited to direct protocol emissions are captured.
- **Logic**: `NotifyReward` events from `BribeVotingReward` and `CLBribeVotingReward` contracts are parsed. To ensure only valid voting incentives are captured, these events are filtered by matching the contract addresses with the bribe addresses emitted in `GaugeCreated` events from `Voter` contracts. The incentive asset address and amount are extracted.
- **Key fields**: `amount`, `asset_address`, `account_address`

### Component C: Ignition launchpad identification

- **Purpose**: Voting incentives belonging to the Ignition launchpad are categorized and mapped.
- **Logic**: Incentive addresses are matched against Ignition launchpad pools registered via `IgnitionEvent` events from `IgnitionRegistry` contracts, as well as pre-defined manual overrides for specific marketing campaigns. If matched, the product is categorized as Ignition; otherwise, it is classified as standard Voting Incentives.
- **Key fields**: `incentive_address`, `product_id`

### Component D: Decimal normalization and USD conversion

- **Purpose**: Asset amounts are normalized and converted to USD.
- **Logic**: Asset amounts for both trading fees and voting incentives are normalized by their respective decimal precision. Normalized amounts are multiplied by end-of-day asset prices. For Ignition launchpad assets where event-date prices are unavailable, the asset amount is multiplied by the time-weighted average price (TWAP) calculated over the first 24 hours of trading, provided the first day's trading volume is greater than or equal to the calculated incentive value.
- **Key fields**: `price_usd`, `first_price_usd`, `first_day_volume_usd`

### Component E: Final aggregation

- **Purpose**: All fee components are combined into a single daily metric.
- **Logic**: Normalized USD values for trading fees and voting incentives are summed by day and product (V1, V2, Slipstream, Ignition, and Voting Incentives). Daily values are aggregated with UTC day boundaries.
- **Key fields**: `fees`, `timestamp`, `product_id`

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

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

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Fees

Fees

Competitive landscape

Chain breakdown