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).

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Asset management

Convex Finance

# Convex Finance Revenue Methodology

## 1. Overview

Convex Finance revenue measures the USD value of fees and incentives retained by the Convex protocol from its yield aggregation services. The metric captures revenue from multiple sources including Curve trading fees, Curve incentive distributions, and Frax protocol incentives across Ethereum, Arbitrum, and Polygon networks. Revenue is calculated by identifying specific token transfers between Convex protocol contracts and applying protocol-specific yield share percentages to determine the portion retained by Convex.

## 2. Data sources

The calculation uses the following raw data sources:
- **Token transfer events**: Parsed `Transfer` events from Ethereum, Arbitrum, and Polygon blockchains capturing movements of CRV, triCRV, FPIS, and FXS tokens between specific Convex protocol contracts
- **End-of-day token price feeds**: USD pricing data for CRV, triCRV, FPIS, and FXS tokens used for currency conversion
- **Token metadata**: Decimal place information for proper token amount normalization

## 3. Step-by-step calculation

### Component A: Yield extraction
- **Purpose**: Identifies and extracts all yield flows to Convex protocol contracts from various sources
- **Logic**: Monitors specific token transfer events between designated contract addresses representing different yield sources. For Ethereum Curve incentives, tracks CRV transfers from the voter proxy contract to the booster contract. For Ethereum trading fees, captures triCRV transfers from the booster to the reward pool. For Arbitrum and Polygon Curve incentives, tracks CRV transfers from Curve contracts to voter proxy contracts. For Frax incentives, monitors FPIS transfers to fee deposit contracts and FXS transfers with special processing. FXS transfers are divided by 0.17 because only the protocol's 17% share is captured in the transfer events, but the total yield amount is needed for subsequent calculations.
- **Key fields**: `block_timestamp` for timing, `value` for transfer amounts, `token_address` for token identification, `account_name` for categorizing yield source type

### Component B: Protocol yield share application
- **Purpose**: Calculates revenue by applying protocol-specific yield share percentages to total yields
- **Logic**: Joins yield data with predefined protocol yield share mappings. Applies 17% share for Curve incentives and FXS incentives (representing Convex's take rate), 100% share for Curve trading fees and FPIS incentives (representing full retention by protocol). Multiplies yield amounts by the appropriate share percentage to determine revenue retained by Convex.
- **Key fields**: `protocol_yield_share` percentages, calculated `revenue` amounts after applying shares

### Component C: USD conversion and normalization
- **Purpose**: Converts token amounts to standardized USD values
- **Logic**: Joins revenue data with end-of-day token price feeds to convert token amounts to USD values. Applies decimal correction based on token metadata to ensure proper amount scaling. Uses end-of-day pricing to maintain consistency with other Token Terminal metrics.
- **Key fields**: USD-denominated `revenue` amounts with proper decimal scaling

### Final aggregation
- **Combining components**: Revenue amounts from all yield sources and chains are summed together on a daily basis
- **Currency conversion**: All amounts converted to USD using end-of-day price feeds with proper decimal correction applied
- **Time aggregation**: Daily aggregation using timestamp truncation to day boundaries, with zero-filling applied for dates with no revenue activity
- **Final calculation**: Total daily revenue equals the sum of all USD-converted revenue amounts across all yield sources (Curve incentives × 17% + Curve trading fees × 100% + Frax FPIS incentives × 100% + Frax FXS incentives × 17%)

*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.

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Revenue

Revenue

Competitive landscape

Chain breakdown