Liquidity providers (LPs) deposit funds into Convex Finance and receive a return on investment (supply-side fees).

Convex Finance is an asset management and staking protocol built on Ethereum. Convex Finance launched in May 2021.

CVX tokenholders own and govern the protocol. They currently take a cut of the total yield generated (revenue).

governance

github

twitter

discord

etherscan

website

Asset management

Convex Finance

# Convex Finance Fees Methodology

## 1. Overview

Convex Finance fees represent the total revenue generated by the protocol through its yield aggregation services. The metric aggregates various revenue streams including Curve incentives, trading fees, and Frax protocol incentives across Ethereum, Arbitrum, and Polygon networks. The calculation tracks token transfers between specific Convex protocol contracts to measure yield flows, treating these yields as protocol fees/revenue.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Token transfer events**: Parsed `Transfer` events from Ethereum, Arbitrum, and Polygon blockchains tracking movements of CRV, FPIS, FXS, and triCRV tokens between specific Convex protocol contracts
- **End-of-day price feeds**: Daily token price data for converting token amounts to USD values
- **Token metadata**: Decimal precision information for accurate token amount calculations
- **Protocol contract addresses**: Hardcoded addresses for key Convex contracts including booster contracts, voter proxies, fee deposit contracts, and reward pools

## 3. Step-by-step calculation

### Component A: Curve incentives tracking
- **Purpose**: Measures CRV token incentives earned from Curve protocol across multiple chains
- **Logic**: Extracts token transfer events where CRV tokens move from voter proxy contracts to booster contracts on Ethereum, or from Curve contracts to voter proxy contracts on Arbitrum and Polygon. Filters transfers by specific contract addresses and token addresses for each chain, with different start dates (Ethereum from May 2021, Arbitrum from November 2022, Polygon from March 2023). Captures the `value` field representing the amount of CRV tokens transferred.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `chain`, `token_address`, `value` (token amount), contract addresses for source and destination

### Component B: Curve trading fees tracking  
- **Purpose**: Measures trading fees earned from Curve pools through triCRV token transfers
- **Logic**: Tracks triCRV token transfers from the booster contract to reward pool contract on Ethereum starting from May 2021. These transfers represent the protocol's share of trading fees from Curve liquidity pools. Uses the same transfer event structure as incentives but with different contract addresses and the triCRV token address.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `value` (triCRV amount), specific booster and reward pool addresses

### Component C: Frax protocol incentives
- **Purpose**: Captures incentives from Frax protocol in both FPIS and FXS tokens
- **Logic**: Tracks two types of Frax incentives - FPIS tokens transferred from Frax voter proxy to fee deposit contract starting March 2023, and FXS tokens transferred to fee deposit contracts starting May 2021. For FXS transfers specifically, applies a scaling factor by dividing the transfer amount by 0.17 to convert from protocol yield to total yield (representing that protocol gets 17% of total yield). Uses multiple fee deposit contract addresses as destinations.
- **Key fields**: `block_timestamp`, `value` (token amount before and after scaling), `token_address` (FPIS or FXS), fee deposit contract addresses

### Final aggregation
- **Combining components**: All token transfer data from the three components are combined using union operations, creating a unified dataset of all revenue-generating transfers across chains and token types
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with automatic decimal correction applied based on token metadata to ensure accurate calculations regardless of token decimal precision
- **Time aggregation**: All transfers are aggregated to daily boundaries using timestamp truncation, with the daily total representing the sum of all fee-generating transfers for that day
- **Final calculation**: The final fees metric equals the sum of all USD-converted token transfers (Curve CRV incentives + triCRV trading fees + Frax FPIS incentives + scaled FXS incentives) aggregated by day, with zero-filling applied for days without any transfers to maintain continuous time series data

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

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

Convex FinanceCVX

Fees

Fees

Competitive landscape

Chain breakdown