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 Revenue Methodology

## 1. Overview

Bifrost IO revenue represents the total fees collected by the Bifrost protocol from both blockchain operations and application services. The metric aggregates transaction fees from the base Bifrost blockchain with application-specific fees from liquid staking, stable swapping, and commission services. Revenue is calculated by extracting fee data from various blockchain events, converting token amounts to proper decimal representation, applying exchange rates for voucher tokens, and converting to USD using end-of-day price feeds.

## 2. Data sources

The calculation relies on several key data sources:

- **Bifrost blockchain events**: Raw event logs from the Bifrost blockchain containing transaction data, fee collection events, and application-specific operations across multiple pallets including `transactionPayment`, `vtokenMinting`, `slp`, `channelCommission`, `systemStaking`, and `stableAsset`
- **Event data structures**: JSON-formatted event data arrays containing fee amounts, currency information, and transaction metadata
- **End-of-day price feeds**: CoinGecko price data for converting various token denominations to USD values
- **Token metadata**: Hardcoded mapping definitions linking Bifrost's internal token identifiers to external coingecko identifiers, decimal precision, and token properties

## 3. Step-by-step calculation

### Component A: Chain transaction fees
- **Purpose**: Captures base blockchain transaction fees paid by users for network operations
- **Logic**: Extracts `TransactionFeePaid` events from the `transactionPayment` pallet, combines the base transaction fee with any additional tip amount, and converts from raw units to BNC tokens by dividing by 10^12 to account for 12 decimal places
- **Key fields**: Uses `transaction_fee` and `transaction_tip` from event data, assigns `bifrost-native-coin` as the coingecko identifier

### Component B: Application fees aggregation
- **Purpose**: Consolidates all application-level fees across different Bifrost services
- **Logic**: Unions five distinct fee types from various blockchain events, each associated with specific product categories and requiring different processing rules
- **Key fields**: Aggregates `fees` and `revenue` amounts with associated `product_id`, `coingecko_id`, and timestamp information

### Component C: VToken commission fees
- **Purpose**: Captures hosting fees charged for liquid staking services
- **Logic**: Extracts `HostingFeeCharged` events from the `slp` pallet, parses currency information from JSON event data using regex patterns, applies a 10x multiplier to the fee amount, converts from raw units using token-specific decimal places, and applies vToken price ratios when dealing with voucher tokens
- **Key fields**: Uses fee amounts from `event_data[1]`, currency keys and indices from `event_data[0]`, assigns `Bifrost Liquid Staking` product identifier

### Component D: Channel commission fees
- **Purpose**: Tracks claimable commission updates for channel partners
- **Logic**: Processes `ChannelClaimableCommissionUpdated` events from the `channelCommission` pallet, extracts currency and fee information from event data arrays, applies decimal conversion and vToken pricing adjustments as needed
- **Key fields**: Uses commission amounts from `event_data[2]`, currency details from `event_data[1]`, maintains `Bifrost Liquid Staking` product classification

### Component E: System staking fees
- **Purpose**: Captures payout fees from the system staking mechanism
- **Logic**: Extracts `Payout` events from the `systemStaking` pallet, processes fee amounts from `event_data[4]`, applies currency mapping and decimal adjustments, includes vToken price ratio corrections for voucher tokens
- **Key fields**: Uses payout amounts with currency information from `event_data[0]`, categorized under `Bifrost Liquid Staking` product

### Component F: Stable swap fees
- **Purpose**: Tracks fees collected from stable asset swapping operations
- **Logic**: Processes `FeeCollected` events from the `stableAsset` pallet, extracts fee amounts from `event_data[7]`, applies currency mapping and decimal conversion, includes vToken pricing adjustments when applicable
- **Key fields**: Uses collected fee amounts with currency details from `event_data[0]`, assigns `Bifrost Stable Swaps` product identifier

### Component G: Redeem fees
- **Purpose**: Captures fees charged during vToken redemption processes
- **Logic**: Extracts `Redeemed` events from the `vtokenMinting` pallet, processes fee amounts from `event_data[4]`, applies standard currency mapping and decimal conversion procedures, includes vToken price ratio adjustments
- **Key fields**: Uses redemption fee amounts with currency information, maintains `Bifrost Liquid Staking` product classification

### Component H: Token mapping and conversion
- **Purpose**: Standardizes token identification and enables proper decimal handling
- **Logic**: Maps internal Bifrost token identifiers including `Token2`, `vToken2`, `Native`, and `vToken` categories to external coingecko identifiers, provides decimal precision information for each token type, enables proper unit conversion from raw blockchain values
- **Key fields**: Links `currency_key` and `currency_index` combinations to `coingecko_id`, `decimals`, and `token` symbols

### Component I: VToken price ratios
- **Purpose**: Calculates exchange rates between voucher tokens and their underlying assets
- **Logic**: Processes `Minted` events from the `vtokenMinting` pallet to extract the ratio between `token_amount` and `v_token_amount`, calculates daily averages for each currency combination, forward-fills missing values to ensure continuous pricing data
- **Key fields**: Uses minting ratios to establish `vtoken_price_ratio` values for proper voucher token valuation

### Final aggregation
- **Combining components**: Chain transaction fees and aggregated application fees are combined using union operations, with each component maintaining its distinct product and currency identifiers
- **Currency conversion**: All fee amounts are converted to USD using CoinGecko end-of-day price feeds through the `convert_to_usd_cg` macro, which matches token identifiers with corresponding price data
- **Time aggregation**: Event timestamps are truncated to daily boundaries, with all fees aggregated by day, chain, and product categories
- **Final calculation**: The methodology produces daily revenue totals by summing all fee components after decimal adjustment, vToken ratio application, and USD conversion, with proper categorization by blockchain segment, market sector, and product type

*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.

BifrostBNC

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Revenue

Revenue

Competitive landscape

Chain breakdown