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Coinshift

# Coinshift Fees Methodology

## 1. Overview

The Coinshift fees metric measures the Assets Under Management (AUM) fees collected by the Coinshift protocol from idle assets in its yield optimization vaults. This metric quantifies the protocol's revenue from management fees charged on assets that are not actively deployed in yield strategies. The calculation applies time-based fee accrual using configured annual fee rates and converts all fees to USD for reporting.

## 2. Data sources

The calculation utilizes the following raw data sources:

- **External state data**: Coinshift's idle asset balance tracking system that records the amount of assets sitting idle in each vault over time
- **Ethereum blockchain events**: Parsed `Deposit` and `Withdraw` events from the wUSDL (wrapped USDL) token contract to derive conversion rates between wrapped and underlying tokens
- **Static vault configuration**: Hardcoded vault definitions containing vault addresses, underlying token addresses, product identifiers, and fee rate configurations
- **End-of-day price feeds**: Token price data for USD conversion of fee amounts
- **Token metadata**: Decimal precision information for proper fee amount scaling

## 3. Step-by-step calculation

### Component A: Idle asset balance tracking
- **Purpose**: Identifies the amount of assets sitting idle in each Coinshift vault over time
- **Logic**: Extracts daily snapshots of idle asset balances from external Coinshift state data, filtered to include only records starting from January 1, 2025. Each record contains timestamp, vault address, market identifier, and asset amount. The data is joined with vault configuration to obtain fee rates and underlying token information.
- **Key fields**: `timestamp`, `market_id`, `vault_address`, `amount`, `aum_fee_rate`, `token_address`, `product_id`

### Component B: wUSDL conversion rate calculation
- **Purpose**: Derives exchange rates between wrapped USDL (wUSDL) tokens and underlying USDL tokens
- **Logic**: Processes `Deposit` and `Withdraw` events from the wUSDL contract on Ethereum to calculate conversion rates as the ratio of wrapped shares to underlying assets. Daily averages are computed for each token to smooth out rate fluctuations.
- **Key fields**: `block_timestamp`, `token_address`, `underlying_value`, `wrapped_value`, `conversion_rate`

### Component C: Time-based AUM fee calculation
- **Purpose**: Computes AUM fees based on the time assets remain idle and configured fee rates
- **Logic**: For each idle asset record, calculates the time elapsed since the previous record using window functions partitioned by token address. Applies the formula: fee = asset_amount × annual_fee_rate × (elapsed_seconds ÷ seconds_per_year). Skips the first record for each token since there's no previous timestamp. Uses hardcoded fee rates of 0.2% annually for csusdl vaults and 0% for csusdc vaults.
- **Key fields**: `attributed_aum_fee`, calculated using lag functions over timestamps

### Component D: Token conversion and aggregation
- **Purpose**: Converts wrapped tokens to underlying tokens and aggregates daily fees
- **Logic**: Applies wUSDL to USDL conversion using the derived exchange rates, with wUSDL token address `0x7751e2f4b8ae93ef6b79d86419d42fe3295a4559` converted to USDL address `0xbdc7c08592ee4aa51d06c27ee23d5087d65adbcd`. Groups fees by day, chain, product, and token address to create daily totals.
- **Key fields**: `fee_amount` after conversion and aggregation

### Final aggregation
- **Combining components**: Daily fee amounts are processed through the standard USD conversion macro which applies end-of-day token prices and corrects for decimal precision
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds and adjusted for token decimal places
- **Time aggregation**: Fees are aggregated at the daily level, with each day representing the cumulative AUM fees accrued during that 24-hour period
- **Final calculation**: The metric sets `fees_supply_side` to zero and places all fee amounts in the `revenue` field, indicating these are protocol revenues rather than fees paid to liquidity providers. The final metric value equals the sum of all daily AUM fee revenues in USD.

*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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