# Bifrost Substrate Average transaction fee Methodology

## 1. Overview

Average transaction fee measures the average fee users pay per transaction on Bifrost Substrate. This metric reflects the typical cost of interacting with the network, including base transaction fees, tips, and specific protocol-level fees. It is calculated by dividing the total daily fee volume by the total number of transactions processed on the network.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Network-level fee extraction

- **Purpose**: Captures the base cost of executing extrinsics on the network.
- **Logic**: `TransactionFeePaid` events are parsed from `transactionPayment` contracts. The base transaction fee and the transaction tip are extracted and summed for each extrinsic. Amounts are normalized by the native asset's decimal precision.
- **Key fields**: `transaction_fee`, `transaction_tip`

### Component B: Application-level fee extraction

- **Purpose**: Aggregates fees generated by specific protocol functions including liquid staking and stable swaps.
- **Logic**: Multiple event types are parsed to capture application-specific fees. `HostingFeeCharged` events from `slp` contracts, `ChannelClaimableCommissionUpdated` events from `channelCommission` contracts, `Payout` events from `systemStaking` contracts, `FeeCollected` events from `stableAsset` contracts, and `Redeemed` events from `vtokenMinting` contracts are identified. Fees are normalized by asset-specific decimal precision.
- **Key fields**: `fees`, `currency_index`, `currency_key`

### Component C: Price ratio normalization

- **Purpose**: Adjusts fee values for vTokens based on their underlying asset value.
- **Logic**: `Minted` events from `vtokenMinting` contracts are analyzed to determine the exchange ratio between the underlying asset and the minted vToken. This ratio is applied to all fees denominated in vTokens to ensure consistent valuation.
- **Key fields**: `token_amount`, `v_token_amount`

### Component D: Transaction count identification

- **Purpose**: Determines the denominator for the average calculation.
- **Logic**: Total transaction volume is identified by counting unique extrinsic IDs from the Bifrost Substrate chain. This count represents the daily volume of network activity.
- **Key fields**: `extrinsic_id`

### Component E: Average calculation and USD conversion

- **Purpose**: Generates the final metric normalized to USD.
- **Logic**: Network-level fees and application-level fees are summed to calculate the total daily fee volume. This volume is converted to USD using end-of-day price feeds. The average transaction fee is then calculated by dividing the total daily USD fee volume by the total daily transaction count.
- **Key fields**: `fees`, `transaction_count`

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

Average transaction fee

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

Average transaction fee

Average transaction fee

Chain breakdown