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

Deri Protocol is a non-custodial exchange for perpetual contracts built on BNB Chain and Arbitrum. Deri Protocol was founded by an anonymous team and launched in 2021.

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

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Deri Protocol

# Deri Protocol Earnings Methodology

## 1. Overview

Deri Protocol earnings represent the net profit generated by the protocol from perpetual derivatives trading activities. The metric is calculated as revenue minus expenses, where revenue comes from trading fees collected by the protocol and expenses consist of DERI token incentives distributed to users. This metric measures the protocol's financial performance and profitability from its core derivatives trading business across Arbitrum and BSC chains.

## 2. Data sources

The calculation relies on several types of blockchain data and external feeds:
- **Arbitrum event logs**: Parsed `SymbolManager_Trade_event` and `Router_ExecuteTrade_event` logs from Deri Protocol v3 contracts containing trading fee and market information
- **BSC event logs**: Parsed `SymbolManager_Trade_event` and `Router_ExecuteTrade_event` logs from Deri Protocol v3 contracts containing trading fee and market information  
- **Reward distribution events**: Parsed `RewardVault_Claim_event` logs from both Arbitrum and BSC showing DERI token incentive claims
- **Token price feeds**: End-of-day DERI token price feeds from Ethereum and BSC networks for USD conversion
- **Market configuration data**: Static mapping of market addresses to distinguish between USD-denominated and DLT-denominated trading pools

## 3. Step-by-step calculation

### Component A: Trading fee extraction
- **Purpose**: Capture all trading fees paid by users on Deri Protocol's perpetual derivatives platform
- **Logic**: Extract `tradeFee` amounts from `SymbolManager_Trade_event` logs on both Arbitrum and BSC chains. Join with `Router_ExecuteTrade_event` logs using transaction hash to obtain market symbol names and trading context. Filter out negative fee amounts and convert from 18-decimal precision to standard decimal format. Separate fees based on market addresses to distinguish between USD-denominated markets (addresses `0x543a9fa25ba9a16612274dd707ac4462ed6988fa`, `0x28ed1dbdb9bc5b7fe67c27c1d767db42ae6f61f7`, `0x8bb7ec8fb31dd6d33d9b71c1bd407f883cac7a91`) and DLT-denominated markets (address `0x8bb7ec8fb31dd6d33d9b71c1bd407f883cac7a91`)
- **Key fields**: `tradeFee` (fee amount in 18 decimals), `symbolId` (market identifier), `symbolName` (market symbol from joined events)

### Component B: Fee USD conversion  
- **Purpose**: Convert all trading fees to USD values for consistent revenue calculation
- **Logic**: For USD-denominated markets, use fee amounts directly as they are already in USD terms. For DLT-denominated markets, multiply fee amounts by end-of-day DERI token prices from Ethereum price feeds. This accounts for the different settlement currencies used across Deri Protocol's various trading markets
- **Key fields**: `fee_amount` (converted fee in USD), `token_address` (DERI token address for price lookup), `price_usd` (end-of-day DERI price)

### Component C: Revenue calculation
- **Purpose**: Calculate protocol revenue as the portion of trading fees retained by Deri Protocol
- **Logic**: Apply an 80% revenue percentage to total trading fees, representing the protocol's share versus liquidity provider compensation. This 80% split has been constant since January 6, 2022, when the protocol first generated fees. Aggregate fees by day and multiply by the revenue percentage to get daily protocol revenue
- **Key fields**: `fees` (total daily trading fees), `revenue_percentage` (0.8 or 80%), `revenue` (protocol's share of fees)

### Component D: Token incentive expenses
- **Purpose**: Calculate expenses from DERI token rewards distributed to protocol users  
- **Logic**: Extract `amount` values from `RewardVault_Claim_event` logs on both Arbitrum and BSC chains, representing DERI tokens claimed by users as trading incentives. Convert token amounts from native precision to USD using end-of-day DERI token prices from BSC (used for both chains due to incomplete Arbitrum price data). Aggregate daily to get total token incentive expenses
- **Key fields**: `amount` (DERI tokens claimed), `token_address` (DERI token address), `token_incentives` (USD value of incentives)

### Final aggregation
- **Combining components**: Subtract daily token incentive expenses from daily protocol revenue using the standard earnings formula: earnings = revenue - expenses
- **Currency conversion**: All values are converted to USD using end-of-day price feeds before the final calculation
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with missing days filled with zero values to ensure complete time series
- **Final calculation**: Daily earnings equal daily protocol revenue (80% of trading fees) minus daily DERI token incentive distributions, providing a net profitability measure for the protocol's derivatives trading operations

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

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

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