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

Bancor is a non-custodial exchange protocol built on Ethereum. Bancor was founded by Galia Benartzi, Guy Benartzi, Eyal Hertzog, & Yudi Levi and launched in 2016.

BNT tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Bancor's investors include DeFiance Capital, ParaFi Capital, Mechanism Capital, etc.

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Exchanges (DEX)

Bancor

# Bancor Fees Methodology

## 1. Overview

The Bancor fees metric measures the total daily fees collected by the Bancor protocol from token swaps and conversions. This metric captures revenue generated by Bancor's DEX aggregator functionality across different protocol versions (v2.1 and v3) on Ethereum. The calculation aggregates fee collection events from smart contract logs, converts them to USD values, and provides daily totals that reflect the protocol's fee revenue generation.

## 2. Data sources

- **Bancor smart contract events**: Parsed Ethereum event logs from Bancor protocol contracts including `Converter_Conversion_event` from v2.1 and `BancorNetwork_TokensTraded_event` from v3
- **Token metadata**: Token information including decimal places and symbols for fee token identification and amount calculations
- **End-of-day price feeds**: Daily USD price data for converting token-denominated fees to standardized USD values
- **Blockchain transaction data**: Ethereum transaction hashes and log indices for event identification and deduplication

## 3. Step-by-step calculation

### Component A: Raw fee event extraction
- **Purpose**: Extract fee collection events from Bancor smart contracts across different protocol versions
- **Logic**: Parse Ethereum event logs for Bancor v2.1 `Converter_Conversion_event` and v3 `BancorNetwork_TokensTraded_event`. For v2.1 events, extract the `conversionFee` field representing fees paid during token conversions. For v3 events, collect both `targetFeeAmount` (fees paid in target token) and `bntFeeAmount` (fees paid in BNT token). Apply address normalization by converting the native ETH identifier (`0xeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee`) to WETH address for consistency. Exclude BNT fees when either the source or target token is BNT itself to avoid double counting
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for uniqueness, `address` as account address, token addresses (`sourceToken`, `targetToken`, `fromToken`, `toToken`), and fee amounts (`conversionFee`, `targetFeeAmount`, `bntFeeAmount`)

### Component B: Token amount processing and daily aggregation
- **Purpose**: Convert raw fee amounts to actual token quantities and aggregate by day
- **Logic**: Join fee events with token metadata to obtain decimal places for each fee token. Calculate actual token amounts by dividing raw amounts by 10 raised to the token's decimal places. Group events by day using timestamp truncation and sum the corrected amounts. Generate token pair names by concatenating token symbols. Handle absolute values to ensure positive fee amounts
- **Key fields**: Corrected `amount` values, `timestamp` truncated to day, token symbols for `account_name` creation, `token0_address` and `token1_address` for token identification

### Component C: USD conversion
- **Purpose**: Convert daily token amounts to USD values using end-of-day prices
- **Logic**: Join daily aggregated fee amounts with end-of-day price feeds matching on timestamp, token address, and chain. Multiply token amounts by USD prices to get fee values in USD. Handle missing price data by defaulting to zero USD value to ensure consistent metric output
- **Key fields**: Final `fees` values in USD calculated from token amounts and prices

### Final aggregation
- **Combining components**: All fee events are processed through the same pipeline regardless of protocol version, with version-specific logic handled in the initial extraction phase
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds matched by date, token address, and chain
- **Time aggregation**: Events are grouped by day using timestamp truncation, with all events within a 24-hour period aggregated together
- **Final calculation**: The metric value equals the sum of all USD-converted fee amounts for each day, representing total daily fee revenue collected by Bancor across all supported token pairs and protocol versions

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

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

BancorBNT

Fees

Fees

Competitive landscape

Chain breakdown