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.

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Bifrost

# Bifrost Fees Methodology

## 1. Overview

The BifrostIO fees metric measures the total daily fees generated by the Bifrost network, encompassing both blockchain-level transaction fees and application-level protocol fees. This metric captures revenue from Bifrost's core blockchain operations as well as its decentralized finance (DeFi) products including liquid staking and stable swaps. The calculation combines native chain fees with application-specific fees from various protocol pallets, converts all amounts to USD, and aggregates them on a daily basis.

## 2. Data sources

- **Bifrost Substrate blockchain events**: Raw event logs from the Bifrost blockchain containing structured data from various pallets including `transactionPayment`, `vtokenMinting`, `channelCommission`, `stableAsset`, `systemStaking`, and `slp`
- **Token metadata**: Hardcoded token definitions mapping token identifiers to CoinGecko IDs, decimal places, and other metadata for supported tokens (DOT, vDOT, GLMR, vGLMR, ASTR, vASTR, FIL, vFIL, MANTA, vMANTA, BNC, vBNC)
- **End-of-day price feeds**: CoinGecko price data for USD conversion of all fee amounts

## 3. Step-by-step calculation

### Component A: Chain transaction fees
- **Purpose**: Captures base blockchain transaction fees paid by users for network operations
- **Logic**: Processes `TransactionFeePaid` events from the `transactionPayment` pallet. Extracts the transaction fee amount from `event_data[1]` and transaction tip from `event_data[2]`. Combines base fee and tip by addition. Converts from raw Bifrost native token units to decimal by dividing by 10^12. Uses hardcoded values: `bifrost-native-coin` for CoinGecko price lookup and `Bifrost Substrate` as the product identifier
- **Key fields**: `transaction_fee` (base fee amount), `transaction_tip` (additional tip amount), combined into total `transaction_fee`

### Component B: vToken commission fees  
- **Purpose**: Captures hosting fees charged for liquid staking services
- **Logic**: Processes `HostingFeeCharged` events from the `slp` (Substrate Liquid Proof-of-stake) pallet. Parses token currency information from `event_data[0]` to extract `currency_key` and `currency_index`. Extracts fee amount from `event_data[1]`. Maps token identifiers to metadata using hardcoded token definitions. For voucher tokens (vTokens), applies price conversion ratios to convert to underlying token equivalent values. Applies a 10x multiplier to vToken commission fees. Normalizes amounts by dividing by 10^decimals based on token metadata
- **Key fields**: `currency_key` and `currency_index` (token identifiers), `fees` (commission amount), `vtoken_price_ratio` (conversion rate)

### Component C: Channel commission fees
- **Purpose**: Captures commission fees from channel-based operations
- **Logic**: Processes `ChannelClaimableCommissionUpdated` events from the `channelCommission` pallet. Extracts currency information from `event_data[1]` and fee amounts from `event_data[2]`. Applies same token mapping and vToken price conversion logic as other components. Normalizes fee amounts using token decimal metadata
- **Key fields**: Similar token identification and fee processing as vToken commissions

### Component D: System staking fees
- **Purpose**: Captures fees from system-level staking rewards and payouts  
- **Logic**: Processes `Payout` events from the `systemStaking` pallet. Extracts currency from `event_data[0]` and fee amounts from `event_data[4]`. Applies token mapping and vToken price conversions. Uses same normalization approach with token decimals
- **Key fields**: `currency_key`, `currency_index`, and `fees` following standard pattern

### Component E: Stable swap fees
- **Purpose**: Captures trading fees from stable asset swap operations
- **Logic**: Processes `FeeCollected` events from the `stableAsset` pallet. Extracts currency information from `event_data[0]` and fee amounts from `event_data[7]`. Maps tokens and applies price conversions following the same pattern. Assigns `Bifrost Stable Swaps` as the product identifier to distinguish from liquid staking fees
- **Key fields**: Standard currency and fee fields with stable swap-specific product classification

### Component F: Redeem fees
- **Purpose**: Captures fees charged when users redeem vTokens for underlying assets
- **Logic**: Processes `Redeemed` events from the `vtokenMinting` pallet. Extracts currency from `event_data[1]` and fee amounts from `event_data[4]`. Applies token mapping, vToken price conversions, and decimal normalization following established patterns
- **Key fields**: Standard token and fee processing with liquid staking product classification

### Component G: vToken price conversions
- **Purpose**: Calculates exchange rates between voucher tokens (vTokens) and their underlying assets
- **Logic**: Processes `Minted` events from `vtokenMinting` pallet to extract `token_amount` from `event_data[2]` and `v_token_amount` from `event_data[3]`. Calculates daily average ratio by dividing token amount by vToken amount. Forward-fills missing days to ensure continuous price series. These ratios are used to convert vToken fee amounts to underlying token equivalents for accurate valuation
- **Key fields**: `token_amount` (underlying asset amount), `v_token_amount` (voucher token amount), `vtoken_price_ratio` (calculated exchange rate)

### Final aggregation
- **Combining components**: Chain fees and all application fees are unioned together into a single dataset with standardized fields including timestamp, chain identifier, product identifier, and CoinGecko identifier for price lookup
- **Currency conversion**: All fee amounts are converted to USD using end-of-day CoinGecko price feeds through the `convert_to_usd_cg` macro, which matches tokens by their CoinGecko identifiers
- **Time aggregation**: All events are aggregated to daily boundaries using timestamp truncation, with fees summed by day, chain, and product
- **Final calculation**: The metric represents the total USD value of all fees collected by the Bifrost network on each day, including both blockchain transaction fees and protocol application fees from liquid staking and stable swap services

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

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

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Chain breakdown