# Bifrost Substrate Revenue Methodology

## 1. Overview

Revenue measures the portion of fees generated by the Bifrost Substrate network and its native applications that is retained by the project. This includes transaction fees and tips collected at the network level, as well as service-specific fees from liquid staking and stable swap products. Revenue is calculated by capturing protocol-controlled fee events across various pallets, normalizing them by asset-specific decimals, and converting the values to USD.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid`, `ChannelClaimableCommissionUpdated`, `Redeemed`, `Minted`, `FeeCollected`, `Payout`, and `HostingFeeCharged` events from `transactionPayment`, `channelCommission`, `vtokenMinting`, `stableAsset`, `systemStaking`, and `slp` pallets on Bifrost Substrate
- **External data**: End-of-day price feeds for native and bridged assets

## 3. Step-by-step calculation

### Component A: Network-level revenue

- **Purpose**: Captures the base transaction fees and tips paid by users for interacting with the Bifrost Substrate blockchain.
- **Logic**: Network revenue is calculated by summing the transaction fee and transaction tip fields from `TransactionFeePaid` events in the `transactionPayment` pallet. These amounts are denominated in the native BNC asset.
- **Key fields**: `transaction_fee`, `transaction_tip`

### Component B: Liquid staking revenue

- **Purpose**: Captures revenue generated by the Bifrost Liquid Staking product, including commission and hosting fees.
- **Logic**: Revenue is aggregated from multiple sources within the liquid staking ecosystem. This includes `HostingFeeCharged` events from `slp` pallets, `Redeemed` events from `vtokenMinting` pallets, and `Payout` events from `systemStaking` pallets. Additionally, commission updates are captured from `ChannelClaimableCommissionUpdated` events in `channelCommission` pallets. For hosting fees, the revenue is identified as the raw fee amount captured from the event.
- **Key fields**: `fees` (from multiple pallets), `currency_index`, `currency_key`

### Component C: Stable swap revenue

- **Purpose**: Captures the protocol's share of fees generated from stable swap liquidity pools.
- **Logic**: Fees are extracted from `FeeCollected` events within the `stableAsset` pallet. These events identify the specific currency and amount of fees retained by the protocol during swap operations.
- **Key fields**: `fees`, `currency_index`, `currency_key`

### Component D: Asset pricing and normalization

- **Purpose**: Normalizes all collected revenue to a common unit and converts it to USD.
- **Logic**: Amounts are first normalized by the decimal precision defined for each asset (e.g., 12 decimals for BNC, 10 for DOT). For vTokens, a price ratio is derived by analyzing the relationship between underlying assets and minted vouchers in `Minted` events from `vtokenMinting` pallets. This ratio is applied to the base asset price to determine the value of staked assets. All final amounts are multiplied by end-of-day price feeds and aggregated by day using UTC boundaries.
- **Key fields**: `token_amount`, `v_token_amount` (for price ratios), `decimals`

*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.

Revenue

Blockchains (L2)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Bifrost is the Staking Yield Layer app-chain for stablecoins, RWAs, and DeFi, powered by the Polkadot Relay chain.

BNC holders own and govern the protocol. Bifrost’s investors include OKX Ventures, Long Hash Ventures, etc.

Bifrost Substrate

Archived

Revenue

Revenue

Chain breakdown