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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Bancor

# Bancor Revenue Methodology

## 1. Overview

Bancor revenue measures the protocol's share of trading fees collected from swaps on the Bancor decentralized exchange. This represents the portion of swap fees that goes to the protocol treasury rather than to liquidity providers. The calculation multiplies total trading fees by the protocol fee tier percentage, which varies over time and between protocol versions (v2.1 and v3).

## 2. Data sources

- **Bancor swap events**: Parsed `Converter_Conversion_event` logs from Bancor v2.1 contracts and `BancorNetwork_TokensTraded_event` logs from Bancor v3 contracts on Ethereum
- **Protocol fee tier updates**: Parsed `NetworkSettings21_NetworkFeeUpdated_event` logs from v2.1 and `PoolCollection_NetworkFeePPMUpdated_event` logs from v3 contracts tracking protocol fee percentage changes
- **Token metadata**: Token symbols and decimal places for proper amount calculations
- **End-of-day price feeds**: USD prices for all tokens involved in fee payments

## 3. Step-by-step calculation

### Component A: Fee event extraction
- **Purpose**: Extract all trading fees collected from Bancor swaps across protocol versions
- **Logic**: Parse swap events from Bancor smart contracts on Ethereum. For v2.1, extract `_conversionFee` amounts from `Converter_Conversion_event` logs. For v3, extract both `targetFeeAmount` and `bntFeeAmount` from `BancorNetwork_TokensTraded_event` logs. Handle special case where BNT fees are set to zero when either source or target token is BNT to avoid double counting. Standardize native ETH addresses to WETH addresses for consistency.
- **Key fields**: Fee amounts (`amount`), token addresses (`token0_address`, `token1_address`), protocol version (`version`), transaction details (`transaction_hash`, `log_index`)

### Component B: Fee processing and USD conversion  
- **Purpose**: Convert raw blockchain fee amounts to USD values aggregated by day
- **Logic**: Join fee events with token metadata to get decimal places and symbols. Convert raw amounts from blockchain units to token units by dividing by 10^decimals. Aggregate fees by day, transaction, and token pair. Join with end-of-day price feeds to convert token amounts to USD values using the fee payment token (always `token1_address`). Create account names by concatenating token symbols.
- **Key fields**: Daily aggregated fee amounts (`fees`), USD conversion via price feeds, account names from token symbols

### Component C: Protocol fee tier tracking
- **Purpose**: Track the percentage of fees that go to the protocol vs liquidity providers over time
- **Logic**: Extract protocol fee percentage updates from governance events. For v3, parse `PoolCollection_NetworkFeePPMUpdated_event` with `newFeePPM` field. For v2.1, parse `NetworkSettings21_NetworkFeeUpdated_event` with `newNetworkFee` field. Convert parts-per-million values to decimal percentages by dividing by 1,000,000. Add initial zero fee tier for v2.1 at protocol launch date (2020-06-16). Apply forward-fill logic to propagate fee tier values to dates without updates.
- **Key fields**: Protocol fee tier percentages (`protocol_fee_tier`), version-specific fee structures, daily time boundaries

### Final aggregation
- **Combining components**: Join daily fee amounts with applicable protocol fee tiers by matching timestamp, chain, and protocol version. Handle cases where no fee tier data exists.
- **Currency conversion**: All amounts already converted to USD in the fee processing step using end-of-day token price feeds
- **Time aggregation**: Data aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Revenue equals total daily fees multiplied by the protocol fee tier percentage (Revenue = Fees × Protocol Fee Tier). This represents the protocol's share of trading fees, with the remainder going to liquidity providers.

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

BancorBNT

Revenue

Revenue

Competitive landscape

Chain breakdown