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).

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ApeSwap

# ApeSwap Supply-side fees Methodology

## 1. Overview

ApeSwap supply-side fees represent the portion of total trading fees that flows to liquidity providers on the ApeSwap decentralized exchange. This metric measures the revenue earned by users who provide liquidity to ApeSwap trading pairs across Ethereum, Polygon, Arbitrum, and BSC networks. The calculation applies protocol-specific fee allocation rules to determine what percentage of total fees goes to the supply side versus the protocol.

## 2. Data sources

The calculation relies on several key data sources:
- **Blockchain events**: Parsed `PairCreated` events from ApeSwap factory contracts to identify trading pairs and fee structures
- **Swap events**: Parsed `Swap` events from ApeSwap pair contracts capturing individual trades with token amount changes
- **Transaction data**: Blockchain transaction records for resolving user addresses and transaction details
- **Token metadata**: Token information including decimal places and symbols for proper amount calculations and pair identification
- **External data**: End-of-day token price feeds for USD conversion of trading volumes and fee calculations

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Establishes the universe of ApeSwap trading pairs and their fee structures across all supported chains
- **Logic**: Collects `PairCreated` events from ApeSwap factory contracts on Ethereum, Polygon, Arbitrum, and BSC. Each event contains the addresses of the two tokens in the pair and the newly created pair contract address. All ApeSwap pairs have a standardized fee tier of 0.2% (2000 basis points divided by 1,000,000). Token metadata is joined to get decimal places and symbols for each token in the pair, creating human-readable pair names
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `fee_tier`, `token0_decimals`, `token1_decimals`, `account_name`

### Component B: Trade extraction
- **Purpose**: Captures individual swap transactions with token amount changes for each trade
- **Logic**: Processes `Swap` events from all identified trading pair contracts. Each swap event contains four amount fields representing tokens flowing in and out. Token amount changes are calculated as the difference between input and output amounts for each token. Transaction data is joined to resolve the actual user address making the trade. Only includes transactions from February 10, 2021 onwards when ApeSwap launched
- **Key fields**: `block_timestamp`, `transaction_hash`, `account_address`, `user_address`, `token0_amount`, `token1_amount`

### Component C: Volume calculation and price conversion
- **Purpose**: Converts raw token amounts to USD trading volumes with anti-manipulation filtering
- **Logic**: Aggregates trading data by day and corrects token amounts using decimal places from token metadata. Joins end-of-day price feeds for both tokens in each pair to convert amounts to USD values. Implements anti-manipulation logic by taking the lesser of the two USD amounts (token0 vs token1) for each trade, preventing inflated volumes from price manipulation or oracle errors. Sums volumes across all trades for each trading pair daily
- **Key fields**: `timestamp`, `chain`, `trading_volume`, `token0_amount`, `token1_amount`

### Component D: Total fee calculation
- **Purpose**: Calculates total fees generated by applying fee tiers to trading volumes
- **Logic**: Multiplies daily trading volume by the fee tier (0.2%) for each trading pair. Aggregates fees across all trading pairs within each chain and day. The fee tier is applied as a decimal multiplier where 0.002 represents the 0.2% fee charged on each trade
- **Key fields**: `timestamp`, `chain_id`, `fees`, `fee_tier`

### Final aggregation: Supply-side fee allocation
- **Combining components**: Takes total fees from Component D and applies protocol-specific allocation rules to determine the supply-side portion
- **Chain-specific allocation**: Applies different supply-side fee shares based on the blockchain: 75% (3/4) of total fees go to liquidity providers on Ethereum, Arbitrum, and BSC, while only 25% (1/4) goes to liquidity providers on Polygon
- **Time aggregation**: Maintains daily granularity with proper timestamp boundaries using day-truncated timestamps
- **Final calculation**: Multiplies total fees by the appropriate supply-side percentage based on chain, then aggregates across all chains and trading pairs to produce the final daily supply-side fees metric

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

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

ApeSwapABOND

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown