# Bifrost Liquid Staking Revenue Methodology

## 1. Overview

Revenue for Bifrost Liquid Staking is measured as the portion of fees retained by the protocol from its liquid staking operations. This metric is used to represent the protocol's earnings before the deduction of operating expenses or token incentives. Revenue is derived from several fee types, including commissions on staking rewards, hosting fees charged on staked assets, redemption fees, and channel-based commissions.

## 2. Data sources

- **Blockchain events**: `HostingFeeCharged` events from `slp` contracts, `ChannelClaimableCommissionUpdated` events from `channelCommission` contracts, `Payout` events from `systemStaking` contracts, and `Redeemed` and `Minted` events from `vtokenMinting` contracts, covering Bifrost Substrate
- **External data**: End-of-day price feeds for assets and asset metadata

## 3. Step-by-step calculation

### Component A: Bifrost Liquid Staking hosting fees and channel commissions

- **Purpose**: To capture periodic service charges and partner-specific commissions retained by the protocol
- **Logic**: `HostingFeeCharged` events from `slp` contracts and `ChannelClaimableCommissionUpdated` events from `channelCommission` contracts are parsed. Fee values are extracted from the event data and mapped to specific assets using internal identifiers. These amounts represent the protocol's share of commissions and the fees charged for hosting liquid staked positions.
- **Key fields**: `fees`, `currency_key`, `currency_index`

### Component B: Bifrost Liquid Staking staking payouts and redemption fees

- **Purpose**: To capture commissions on staking rewards and fees collected during asset redemption
- **Logic**: `Payout` events from `systemStaking` contracts and `Redeemed` events from `vtokenMinting` contracts are parsed. Payout fees represent the protocol's commission on earned staking rewards, while redemption fees are captured when users unstake assets through the protocol. These amounts are associated with the respective underlying or voucher assets based on the provided currency indices.
- **Key fields**: `fees`, `currency_key`, `currency_index`

### Component C: vToken price ratio determination

- **Purpose**: To establish accurate valuation for liquid staking derivatives (vTokens) relative to their underlying assets
- **Logic**: Price ratios for vTokens are established by comparing the underlying asset amounts to the minted vToken amounts within `Minted` events from `vtokenMinting` contracts. These daily average ratios are applied to fee amounts denominated in vTokens to ensure the revenue is accurately valued in terms of the underlying base asset.
- **Key fields**: `token_amount`, `v_token_amount`, `currency_key`, `currency_index`

### Component D: Normalization and USD conversion

- **Purpose**: To normalize asset amounts by decimal precision and convert them to a unified USD valuation
- **Logic**: Fee amounts are normalized by the decimal precision defined in the asset metadata. The resulting values are multiplied by the established vToken price ratios (where applicable) and then converted to USD using end-of-day price feeds. Daily totals are aggregated across all relevant staking modules with UTC day boundaries.
- **Key fields**: `decimals`, `vtoken_price_ratio`, `price_usd`

*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

Liquid staking

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 Liquid Staking

Archived

Revenue

Revenue

Chain breakdown