Liquidity providers deposit funds into ApeSwap and receive trading fees from traders (supply-side fees).

ApeSwap is a non-custodial exchange protocol built originally on BNB Chain. ApeSwap was founded by an anonymous team and launched in 2021.

BANANA tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

governance

github

twitter

discord

etherscan

website

Exchanges (DEX)

ApeSwap

# ApeSwap Earnings Methodology

## 1. Overview

ApeSwap earnings represents the protocol's net profitability, calculated as total revenue minus total expenses on a daily basis. This metric answers the fundamental question: "How much profit does ApeSwap generate from its decentralized exchange operations after accounting for user incentive costs?" The calculation follows a standard financial approach where protocol fee revenue is reduced by the cost of token incentive programs to arrive at net earnings.

## 2. Data sources

The earnings calculation relies on several categories of raw blockchain data:

- **Swap events**: Parsed `ApePair_Swap_event` logs from Ethereum, Polygon, Arbitrum, and BSC networks containing trade execution details including token amounts and user addresses
- **Factory events**: `ApeFactory_PairCreated_event` logs that identify valid trading pairs and their associated fee tiers across all supported chains
- **Incentive events**: Various event logs from BSC including `MasterApe_Deposit_event`, `MasterApe_Withdraw_event`, `MasterApeV2_Deposit_event`, `MasterApeV2_Withdraw_event`, `GNANAPool_Deposit_event`, `GNANAPool_Withdraw_event`, and `MiniApeV2_Harvest_event` from Polygon
- **Token transfers**: BSC token transfer events specifically tracking BANANA token minting and distribution patterns to validate incentive program transactions
- **Transaction data**: Core transaction records from all supported chains to resolve user addresses and transaction context
- **Price feeds**: End-of-day token price feeds for USD conversion of both trading volumes and incentive token distributions
- **Token metadata**: Token decimal precision and symbol information for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Revenue calculation from trading fees
- **Purpose**: Calculate protocol revenue from trading fee collection
- **Logic**: Extract swap events from valid trading pairs identified through factory creation events. For each swap, calculate the absolute change in both token amounts within the pair. Aggregate these amounts daily and correct for token decimals using metadata. Convert both token amounts to USD using end-of-day price feeds, then take the lesser of the two USD values to prevent price manipulation from affecting volume calculations. Multiply this trading volume by the pool's fee tier (0.2% for ApeSwap) to get total fees generated. Apply the protocol fee share to determine revenue: 25% of fees on most chains, but 75% on Polygon due to different fee sharing arrangements
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` from swap events, `sender` and user addresses, `token0_address` and `token1_address` from trading pairs, `fee_tier` configuration

### Component B: Expense calculation from token incentives
- **Purpose**: Calculate protocol expenses from liquidity mining and staking reward programs
- **Logic**: Track BANANA token distributions across multiple incentive programs. For MasterApe v1 (pre-migration) and MasterApeV2 (post-migration), monitor deposit and withdrawal events, filtering out internal transfers using a denylist of program IDs and validating against actual token mint events. For GNANAPool staking rewards, track deposit and withdrawal events for single-token staking. For MiniApeV2 on Polygon, capture harvest events directly. Cross-reference all events with actual BANANA token transfers from designated reward accounts to ensure only legitimate reward distributions are counted. Convert token amounts using decimal corrections and end-of-day USD prices to get expense values
- **Key fields**: `amount` from various incentive events, `user` addresses receiving rewards, `pid` for program identification, token transfer `value` for validation

### Final aggregation
- **Combining components**: Revenue and expenses are calculated independently then combined using the simple formula: earnings = revenue - expenses
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds, with decimal correction applied before price multiplication
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with all events within a UTC day contributing to that day's calculation
- **Final calculation**: The final earnings metric represents the net USD amount that ApeSwap protocol retains after paying out all user incentives, calculated daily and aggregated across all supported blockchain networks

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

ApeSwapABOND

Earnings

Earnings

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