# Cross-Chain Interoperabilty Protocol (CCIP) Fees Methodology

## 1. Overview

Fees for Cross-Chain Interoperability Protocol (Cross-Chain Interoperabilty Protocol (CCIP)) are measured as the total value paid by users to utilize the application's cross-chain messaging and asset transfer services. These fees are paid to facilitate the secure transmission of data and value across disparate blockchain networks. The collected amounts are used to compensate the decentralized oracle networks and infrastructure providers responsible for verifying and executing cross-chain transactions.

## 2. Data sources

- **Blockchain events**: `OnRampSet` events from `Router` contracts, `CCIPSendRequested` events from `EVM2EVMOnRamp` contracts, and ERC-20 token transfers to fee aggregator contracts, covering Ethereum, Arbitrum, Avalanche, Base, Monad, and 3 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Cross-Chain Interoperability Protocol (Cross-Chain Interoperabilty Protocol (CCIP)) route mapping

- **Purpose**: To establish the relationship between on-ramp contracts and their destination networks.
- **Logic**: `OnRampSet` events are parsed from `Router` contracts to identify the mapping between specific on-ramp contract addresses and destination chain selectors. These mappings are utilized to categorize fee activity by its respective cross-chain route.
- **Key fields**: `account_address`, `destination_chain`

### Component B: Cross-Chain Interoperability Protocol (Cross-Chain Interoperabilty Protocol (CCIP)) fee extraction

- **Purpose**: To capture direct fee payments associated with cross-chain message requests.
- **Logic**: `CCIPSendRequested` events are parsed from various versions of `EVM2EVMOnRamp` contracts. The fee token address and the fee amount are extracted from the message object contained within each event. Only successful transactions that have not been removed by chain reorganizations are included.
- **Key fields**: `feeToken`, `feeTokenAmount`, `account_address`

### Component C: Cross-Chain Interoperability Protocol (Cross-Chain Interoperabilty Protocol (CCIP)) aggregator tracking

- **Purpose**: To capture consolidated fee payments processed through the protocol's aggregation infrastructure.
- **Logic**: ERC-20 token transfers on Ethereum are monitored where the recipient is a designated fee aggregator address. These transfers represent additional fee volume generated by protocol activity that is collected via centralized aggregator contracts.
- **Key fields**: `token_address`, `to_address`, `value`

### Component D: USD conversion and price normalization

- **Purpose**: To normalize fee values into a standardized currency for aggregation.
- **Logic**: All identified fee amounts are normalized by their respective asset's decimal precision. Normalized values are multiplied by end-of-day price feeds to determine the USD value. For assets such as LINK on networks where direct price feeds may be unavailable (including Polygon and BNB Chain), prices are mapped to the canonical LINK asset address on Ethereum to ensure consistent valuation. Fees are aggregated daily using UTC boundaries.

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

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

Fees

Infrastructure

In order to bring determinism to the oracle layer, Chainlink has developed a network of decentralized oracle networks (DONs), with each DON involving a combination of multiple security techniques needed to service a particular use case.
The Chainlink stack supports multiple open standards for designing and operating oracle services, which currently span four key verticals: 1) Data, 2) Interoperability, 3) Compliance, and 4) Privacy. Built upon these standards exists an ever-expanding collection of modular, purpose-built oracle services, which can be easily created and seamlessly composed using the Chainlink Runtime Environment (CRE). CRE is a developer platform and decentralized execution environment for running, managing, and composing oracle services into scalable end-to-end solutions, which run in a highly secure, reliable, and cryptographically verifiable manner.

Chainlink is the industry-standard oracle platform bringing the capital markets onchain and powering the majority of decentralized finance (DeFi). The Chainlink stack provides the essential data, interoperability, compliance, and privacy standards needed to power advanced blockchain use cases for institutional tokenized assets, lending, payments, stablecoins, and more. Since inventing decentralized oracle networks, Chainlink has enabled tens of trillions in transaction value and now secures the vast majority of DeFi. 
Many of the world’s largest financial services institutions have also adopted Chainlink’s standards and infrastructure, including Swift, Euroclear, Mastercard, Fidelity International, UBS, ANZ, and top protocols such as Aave, GMX, Lido, and many others. Chainlink leverages a novel fee model where offchain and onchain revenue from enterprise adoption is converted to LINK tokens and stored in a strategic Chainlink Reserve. Learn more at chain.link.

Chainlink is not a governance protocol. Chainlink is an open-sourced platform of standards developers leverage to build next-generation onchain applications. It is developed and maintained by Chainlink Labs and a broader community of contributors. While there is no onchain token-based governance like in some DeFi protocols, the direction of the protocol is guided by core developers, researchers, and ecosystem partners, with feedback from the community.

Cross-Chain Interoperabilty Protocol (CCIP)

Fees

Fees

Chain breakdown