Stakers deposit funds into BENQI and receive a return on investment in the form of staking rewards (supply-side fees).

BENQI Liquid Staking is the liquid staking derivative business line of BENQI. BENQI was founded by an international team of software developers and launched in 2021.

BENQI tokenholders own and govern the BENQI protocol, including the BENQI Liquid Staking business line. They currently take a cut of the total staking rewards earned by the protocol (revenue). BENQI's investors include Dragonfly Capital, Mechanism Capital, Spartan, etc.

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BENQI Liquid Staking

# BENQI Liquid Staking Fees Methodology

## 1. Overview

The BenqiLSD fees metric measures the total protocol and validator fees generated by the BenqiLSD liquid staking protocol on Avalanche. BenqiLSD operates a liquid staking service where users stake AVAX tokens and receive sAVAX tokens in return. The protocol retains 10% of all staking rewards as fees, with 90% distributed to users. This metric calculates the total fees by scaling up the user reward distributions by a factor of 1/0.9, effectively deriving the full fee amount from the publicly visible reward payments.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Avalanche blockchain events**: Parsed `AccrueRewards` events emitted by BenqiLSD's staking contracts, including both the original StakedAvax (v1) and upgraded StakedAvaxV2 (v2) contract versions
- **Transaction data**: Avalanche transaction metadata including block timestamps, transaction hashes, and log indices for event identification
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal place correction
- **Contract metadata**: BenqiLSD contract addresses and version information for proper event attribution

## 3. Step-by-step calculation

### Component A: Reward event extraction
- **Purpose**: Captures all user reward distribution events from BenqiLSD staking contracts
- **Logic**: Extracts `AccrueRewards` events from two contract versions on Avalanche blockchain. For the original StakedAvax contract, uses the `value` field, while for the upgraded StakedAvaxV2 contract, uses the `userRewardAmount` field. Both fields represent the amount of rewards distributed to users. Applies distinct filtering to prevent duplicate counting of the same event across different data processing runs. Each event is tagged with business classification as liquid staking and assigned to the sAVAX product
- **Key fields**: `value` and `userRewardAmount` representing user reward amounts, `block_timestamp` for timing, `address` as token contract address, transaction identifiers for event uniqueness

### Component B: Fee calculation through scaling
- **Purpose**: Derives total protocol fees from user reward amounts using the known fee structure
- **Logic**: Applies a multiplier of 1/0.9 (approximately 1.111) to each user reward amount. This calculation is based on BenqiLSD's fee structure where users receive 90% of total staking rewards, with the remaining 10% going to the protocol and validators as fees. By scaling up the user rewards by 1/0.9, the calculation reconstructs the total reward amount before fee deduction, then the difference represents the protocol fees
- **Key fields**: `amount` field multiplied by fee multiplier, resulting in `fees` representing total protocol fee amounts

### Final aggregation
- **Combining components**: The scaled fee amounts are aggregated by day using timestamp truncation to daily boundaries
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with proper decimal place correction applied based on token metadata to ensure accurate value representation
- **Time aggregation**: Data is grouped by day with timestamp grain set to 'day', ensuring consistent daily fee reporting
- **Final calculation**: The metric represents the total daily fees in USD generated by BenqiLSD's liquid staking protocol, calculated as the difference between total staking rewards and the 90% distributed to users. Missing dates are filled with zero values to maintain continuous time series data, and chain availability filters ensure data quality across the reporting period

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

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

BENQI Liquid Staking

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