# BMX Classic Revenue Methodology

## 1. Overview

Revenue measures the portion of fees retained by BMX Classic from its spot and perpetual trading activities. This metric reflects the protocol's earnings generated from trading commissions, margin fees, and liquidity provider asset (BLT) minting and burning. Revenue is used to assess the protocol's financial performance before the deduction of operating expenses and incentives.

## 2. Data sources

- **Blockchain events**: `SellUSDG`, `BuyUSDG`, `CollectMarginFees`, `CollectSwapFees`, and `Swap` events from `Vault` contracts, covering Base
- **External data**: End-of-day price feeds for assets

## 3. Step-by-step calculation

### Component A: Perpetual and spot fee collection

- **Purpose**: Captures direct fee payments from leveraged perpetual trading and spot swap activities.
- **Logic**: `CollectMarginFees` and `CollectSwapFees` events are parsed from `Vault` contracts. Margin fees, which represent the cost of maintaining leveraged positions, are extracted as token amounts. Spot fees, which represent the protocol's take from standard swaps, are extracted as USD values.
- **Key fields**: `amount`, `token_address`, `account_address`

### Component B: Liquidity asset minting and burning fees

- **Purpose**: Captures fees generated when users enter or exit the protocol's liquidity pool.
- **Logic**: `BuyUSDG` and `SellUSDG` events are parsed from `Vault` contracts to identify the minting and burning of the protocol's liquidity provider asset. Fees are calculated by multiplying the transaction amount by the fee basis points recorded in the event.
- **Key fields**: `amount`, `fee_basis_points`

### Component C: Swap fee calculation

- **Purpose**: Calculates fees from spot trading volume not captured by direct fee collection events.
- **Logic**: `Swap` events are parsed from `Vault` contracts. Trading volume is determined by selecting the lesser USD value between the input and output assets to mitigate the impact of price manipulation. Fees are then calculated by applying the specific fee basis points of the swap to the resulting volume.
- **Key fields**: `amount_in`, `amount_out`, `fee_basis_points`, `in_token_address`, `out_token_address`

### Component D: USD conversion and aggregation

- **Purpose**: Normalizes all fee components into a single USD-denominated revenue metric.
- **Logic**: All fee components from perpetual trading, spot swaps, and liquidity asset operations are aggregated. Token-denominated amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. The final revenue value is the sum of these components, representing the total protocol-retained fees for BMX Classic.
- **Key fields**: `timestamp`, `revenue`, `chain_id`

*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

Derivative exchanges

Liquidity providers deposit funds into BMX and receive trading fees from traders (supply-side fees).

BMX is a non-custodial exchange for spot and perpetual contracts built on Base. BMX has three product lines: Classic, Freestyle, and Based MediaX

BMX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

BMX Classic

Archived

Revenue

Revenue

Chain breakdown