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 Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of trading fees that is distributed directly to liquidity providers. On Aerodrome, this metric captures fees collected by service providers who opt out of receiving AERO incentives in favor of claiming direct trading fees from the pools. This distinguishes provider-retained income from fees directed toward the protocol's voting and incentive Gauges. The metric covers the Aerodrome V1, V2, and Slipstream products.

## 2. Data sources

- **Blockchain events**: `Claim` events from `Pool` contracts, `CollectFees` events from `CLPool` contracts, and `GaugeCreated` events from `Voter` contracts, covering Base and Arc
- **External data**: End-of-day price feeds for assets traded within the pools

## 3. Step-by-step calculation

### Component A: Incentive account identification

- **Purpose**: Identify addresses associated with the protocol's liquidity incentive system to distinguish between protocol revenue and supply-side fees
- **Logic**: `GaugeCreated` events are parsed from `Voter` contracts. The gauge addresses are extracted and stored as a reference list of incentive accounts. These accounts represent the destination for fees that are redistributed to voters rather than being retained by the immediate service providers.
- **Key fields**: `gauge` address, `pool` address

### Component B: Fee claim extraction

- **Purpose**: Capture all fee collection activity across different Aerodrome pool versions
- **Logic**: `Claim` events are parsed from `Pool` contracts (for V1 and V2) and `CollectFees` events are parsed from `CLPool` contracts (for Slipstream). The volume of both assets in the pair is extracted from the `amount0` and `amount1` fields. The address of the entity claiming the fees is identified from the `sender` or `recipient` fields.
- **Key fields**: `amount0`, `amount1`, `sender`, `recipient`, `address` (pool address)

### Component C: Supply-side fee filtering

- **Purpose**: Isolate the portion of fees that flows to service providers
- **Logic**: The fee collector's address for every claim event is compared against the list of incentive accounts identified in Component A. Claims are classified as supply-side fees only when the collector address is not present in the incentive account list. This logic isolates trading fees claimed by liquidity providers who do not participate in the AERO incentive distribution.
- **Key fields**: `fee_collector_address`, `incentive_account_address`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize fee values and aggregate them into a final time series
- **Logic**: Raw fee amounts are normalized by the decimal precision of each asset. The normalized amounts are multiplied by the corresponding end-of-day price feeds. Daily totals are calculated by summing the USD values of both assets across all qualifying claim events. Data is organized by product (V1, V2, or Slipstream) and chain with UTC day boundaries.

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

Portion of fees distributed to service providers or supply-side participants.

AerodromeAERO

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown