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Coinshift

# Coinshift Earnings Methodology

## 1. Overview

Coinshift earnings represent the protocol's net profit calculated as revenue minus expenses. Revenue comes from Assets Under Management (AUM) fees charged on idle assets held in Coinshift vaults, while expenses are currently zero as the protocol does not distribute token incentives. This metric answers how much profit Coinshift generates from managing user assets in their yield-generating vaults.

## 2. Data sources

The calculation relies on four primary data sources:
- **Coinshift state data**: Idle asset balance snapshots by vault and market ID showing assets subject to AUM fees
- **Ethereum blockchain events**: Parsed `Deposit` and `Withdraw` events from the wUSDL token contract providing conversion rates between wrapped and underlying tokens
- **End-of-day token price feeds**: USD pricing data for token value conversion and decimal standardization
- **Coinshift vault configuration**: Static reference data containing vault addresses, underlying token addresses, product IDs, and fee rate configurations

## 3. Step-by-step calculation

### Component A: Idle asset tracking
- **Purpose**: Identifies asset balances in Coinshift vaults that are subject to AUM fees
- **Logic**: Extracts idle asset balances from Coinshift state data, filtering for records after January 1, 2025. Each record contains a timestamp, chain identifier, market ID, vault address, and asset amount. The data is joined with vault configuration to map vault addresses to underlying token addresses, product IDs, and AUM fee rates
- **Key fields**: `timestamp`, `market_id`, `vault_address`, `amount`, `aum_fee_rate`, `underlying_token_address`, `product_id`

### Component B: AUM fee calculation
- **Purpose**: Calculates time-based AUM fees on idle assets using annualized fee rates
- **Logic**: For each idle asset record, calculates AUM fees using the formula: asset amount × AUM fee rate × (time interval in seconds ÷ seconds in year). Time intervals are calculated between consecutive timestamps for each token address. The first record for each token has zero fees since there's no previous timestamp. Currently, csusdl vaults have a 0.2% AUM fee rate while csusdc vaults have 0% fees
- **Key fields**: `attributed_aum_fee`, calculated using time differences between consecutive asset snapshots

### Component C: Token conversion
- **Purpose**: Converts wrapped USDL (wUSDL) amounts to underlying USDL using exchange rates
- **Logic**: Extracts conversion rates from Ethereum wUSDL `Deposit` and `Withdraw` events, calculating the ratio of wrapped shares to underlying assets. Daily average conversion rates are applied to convert wUSDL fee amounts to USDL. Non-wUSDL tokens use a 1:1 conversion rate
- **Key fields**: `conversion_rate` derived from `wrapped_value` ÷ `underlying_value` from blockchain events

### Component D: Daily aggregation and USD conversion
- **Purpose**: Aggregates fees to daily level and converts to USD values
- **Logic**: Sums AUM fees by day, product, chain, and token address after applying token conversions. Converts token amounts to USD using end-of-day price feeds and applies decimal corrections based on token specifications. The macro handles both USD conversion and decimal standardization automatically
- **Key fields**: `fee_amount` converted to USD with proper decimal places

### Component E: Revenue finalization
- **Purpose**: Standardizes revenue data with proper schema and gap-filling
- **Logic**: Applies Token Terminal's standard revenue metric schema, validates data completeness, and implements a zero-fill strategy for missing dates. Ensures consistent time series data across all products and chains
- **Key fields**: `revenue` as the final USD-denominated fee amount

### Component F: Expenses calculation
- **Purpose**: Calculates total protocol expenses from token incentives
- **Logic**: Sources token incentive data and sets all values to zero, as Coinshift currently does not distribute token incentives. Applies the same standardization and gap-filling as revenue
- **Key fields**: `expenses` set to zero for all periods

### Final aggregation
- **Combining components**: Revenue and expenses are combined using Token Terminal's earnings calculation macro, which implements the formula: earnings = revenue - expenses
- **Currency conversion**: All amounts are already converted to USD in prior steps using end-of-day price feeds
- **Time aggregation**: Data is aggregated to daily boundaries based on timestamp truncation
- **Final calculation**: Since expenses are zero, earnings equals revenue, representing the USD value of AUM fees collected on idle assets in Coinshift vaults

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Coinshift

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