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 Supply-side fees Methodology

## 1. Overview

Supply-side fees for Deri Protocol represent the portion of trading fees that are distributed to liquidity providers rather than retained as protocol revenue. This metric captures the compensation paid to users who provide liquidity to Deri Protocol's perpetual trading markets. The calculation multiplies total trading fees by the liquidity provider share percentage, which is currently set at 20% (with 80% going to protocol revenue).

## 2. Data sources

- **Blockchain events**: Parsed `SymbolManager_Trade_event` logs from Deri Protocol contracts on Arbitrum and BSC containing trading fee information
- **Market events**: Parsed `Router_ExecuteTrade_event` logs from Deri Protocol contracts on Arbitrum and BSC providing market symbol names and trade context  
- **External data**: End-of-day DERI token price feeds from Ethereum for currency conversion
- **Configuration data**: Hardcoded revenue percentage splits defining the fee allocation between protocol revenue and liquidity provider compensation
- **Reference data**: Manual mappings between market addresses and token symbols for markets not captured in event logs

## 3. Step-by-step calculation

### Component A: Raw trading fee extraction
- **Purpose**: Extracts trading fees paid by users from blockchain event logs
- **Logic**: Processes `SymbolManager_Trade_event` logs from Deri Protocol contracts on Arbitrum and BSC chains. Extracts the `tradeFee` field which represents fees paid by traders in 18-decimal format. Converts these values to standard decimal units by dividing by 10^18. Applies filtering to set any negative fee values to zero to handle edge cases
- **Key fields**: `tradeFee` (fee amount), `symbolId` (market identifier), `account_address` (market contract), `block_timestamp` (transaction timing)

### Component B: Market symbol resolution  
- **Purpose**: Maps market identifiers to human-readable symbol names for categorization
- **Logic**: Joins trading events with `Router_ExecuteTrade_event` logs using transaction hashes to extract `symbolName` fields. For markets not captured in these events, uses manual mappings that link specific market addresses to token symbols like 'ETH-3000-P', 'BTCUSD-100000-C', etc. This provides complete symbol coverage across all Deri Protocol markets
- **Key fields**: `symbolName` (from events), `token_symbol` (from manual mappings), transaction hash for joining

### Component C: Market denomination identification
- **Purpose**: Determines whether fees are denominated in USD or DLT tokens for proper currency handling
- **Logic**: Uses hardcoded market address mappings to categorize markets. USD-denominated markets include addresses like '0x543a9fa25ba9a16612274dd707ac4462ed6988fa', '0x28ed1dbdb9bc5b7fe67c27c1d767db42ae6f61f7', and '0x741c8e810cd1c7bab6565e850b775fc33c15c084'. DLT-denominated markets use address '0x8bb7ec8fb31dd6d33d9b71c1bd407f883cac7a91'. This categorization determines whether currency conversion is needed
- **Key fields**: `account_address` (market contract address for classification)

### Component D: Currency conversion
- **Purpose**: Converts DLT-denominated fees to USD for consistent reporting
- **Logic**: For fees from DLT-denominated markets, joins with end-of-day DERI token price feeds from Ethereum using daily timestamps and the DERI token address '0xa487bf43cf3b10dffc97a9a744cbb7036965d3b9'. Multiplies the fee amounts by the USD price to get dollar-equivalent values. USD-denominated market fees are used directly without conversion
- **Key fields**: `price_usd` (daily DERI price), `amount` (converted fee value)

### Component E: Fee aggregation
- **Purpose**: Combines and standardizes all fee data across markets and chains
- **Logic**: Unions USD-converted DLT fees with direct USD fees from different market types. Truncates timestamps to daily boundaries for consistent time aggregation. Groups data by timestamp, chain, market details, and token information. Applies the finalize metric macro to ensure proper formatting and metadata inclusion
- **Key fields**: `timestamp` (daily), `chain` (Arbitrum/BSC), `amount` (total fees)

### Component F: Revenue percentage application  
- **Purpose**: Determines the split between protocol revenue and liquidity provider fees
- **Logic**: Uses a configuration that sets revenue percentage at 80% starting from 2022-01-06, which was the first day Deri Protocol generated fees. Applies a fill-forward strategy to propagate this percentage across all subsequent days, ensuring consistent application over time. This means 20% of total fees go to liquidity providers as supply-side fees
- **Key fields**: `revenue_percentage` (0.8 for protocol revenue)

### Final aggregation
- **Combining components**: Joins total fees with revenue percentages by timestamp to ensure each day's fees use the correct split ratio
- **Currency conversion**: All fees are already converted to USD in the intermediate processing, with DLT-denominated fees converted using end-of-day DERI token prices
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with consistent daily grain applied throughout
- **Final calculation**: Supply-side fees are calculated as total fees multiplied by (1 minus revenue percentage), which equals total fees times 0.2, representing the 20% allocated to liquidity providers. Uses `safe_multiply` function to handle potential null values gracefully

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

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

Deri ProtocolDERI

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown