Liquidity providers deposit funds into Curve and receive trading fees from traders (supply-side fees).

Curve is a non-custodial exchange protocol built originally on Ethereum. Curve was founded by Michael Egorov and launched in 2020.

CRV tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). 

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Curve

# Curve Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of trading fees on Curve DEX that goes to liquidity providers (LPs) rather than the protocol. The calculation determines total fees generated by each pool and then applies the protocol's fee split to isolate the LP share. The methodology combines pool-specific APR calculations with TVL data to estimate daily fee generation, accounting for different pool types (stable vs volatile) and rebasing token mechanics.

## 2. Data sources

- **Curve pool state data**: Daily snapshots of pool internal accounting including virtual prices for stable pools, XCP profit metrics for volatile pools, protocol fee tiers, and token balances for all pools across supported chains
- **Curve pool metadata**: Pool configuration data defining token compositions, pool types, and contract addresses
- **Lido protocol events**: `PostTotalShares` events from Lido v1 Oracle contract and `TokenRebased` events from Lido v2 stETH contract on Ethereum for calculating stETH rebasing rewards
- **Token metadata**: Token symbols, decimal places, and contract addresses for proper calculation handling
- **End-of-day price feeds**: Token prices for USD conversion of fees and TVL values

## 3. Step-by-step calculation

### Component A: Pool APR calculation
- **Purpose**: Calculate the annual percentage return for each Curve pool to estimate fee generation rates
- **Logic**: Use different methodologies based on pool type. For stable pools, calculate APR from virtual price changes between consecutive days using the formula: current virtual price divided by previous virtual price minus 1. Apply outlier filtering to exclude APR changes below 0.0005 to remove unrealistic values. For volatile pools (crypto pools), calculate APR from XCP profit changes by taking current profit minus previous profit divided by previous profit, where current profit equals the average of `xcp_profit` and `xcp_profit_a` values plus a base amount, all divided by 2. Parse JSON state data values and convert to proper numeric formats
- **Key fields**: `virtual_price` for stable pools, `xcp_profit` and `xcp_profit_a` for volatile pools, `pool_type` to determine calculation method

### Component B: Rebasing token adjustment  
- **Purpose**: Remove staking rewards from pools containing rebasing tokens like stETH to isolate pure trading fees
- **Logic**: For pools containing stETH, calculate the rebasing APR contribution from Lido rebase events. Use `PostTotalShares` events for dates before May 16, 2023 (Lido v1) and `TokenRebased` events after that date (Lido v2). Calculate daily rebasing APR from the change in total pooled ether or share rate. Apply this APR only to the portion of pool TVL represented by stETH holdings. Subtract the rebasing token APR from the total pool APR to get the trading-only APR
- **Key fields**: `preTotalPooledEther`, `postTotalPooledEther`, `totalShares` for v1 data, `preTotalEther`, `postTotalEther`, `preTotalShares`, `postTotalShares` for v2 data

### Component C: TVL integration and fee calculation
- **Purpose**: Combine APR data with pool liquidity data to calculate absolute fee amounts
- **Logic**: Aggregate pool token balances by pool address and timestamp from daily state snapshots taken at midnight UTC. Convert native ETH addresses to WETH addresses for consistency. Sum all token balances per pool to get total TVL in USD. Join APR data with TVL data by pool address, chain, and timestamp. Use lagged TVL values (previous day's liquidity) to calculate fees, as fees are earned on existing liquidity. Calculate total fees as: lagged APR multiplied by lagged TVL divided by protocol fee tier, where the division adjusts for the protocol's share already included in the APR calculation
- **Key fields**: `net_deposits` for token balances, `apr` from previous calculations, `protocol_fee_tier` for fee split ratios

### Component D: Protocol fee tier application
- **Purpose**: Obtain the protocol's share of fees for each pool to enable supply-side calculation
- **Logic**: Extract protocol fee tier data from pool state calls covering both regular pools and tricrypto pools. Parse JSON values and convert to decimal format by dividing by 10^10. Filter out pools with fee tiers below 0.001 (0.1%) to exclude invalid or zero fee configurations. When protocol fee tier data is unavailable, assume zero protocol fees (fee tier = 0)
- **Key fields**: `protocol_fee_tier` representing the protocol's percentage share of fees

### Final aggregation
- **Combining components**: Join total fees with protocol fee tier data by pool address, chain, and timestamp
- **Currency conversion**: Apply USD conversion using end-of-day token price feeds and correct for token decimal places
- **Time aggregation**: Aggregate to daily grain using daily state snapshots
- **Final calculation**: Calculate supply-side fees as total fees multiplied by (1 minus protocol fee tier), representing the portion of fees distributed to liquidity providers rather than retained by the protocol

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

Portion of fees distributed to service providers or supply-side participants.

CurveCRV

Supply-side fees

Supply-side fees

Competitive landscape

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