Liquidity providers deposit funds into DFX and receive a share of trading fees (supply-side fees).

DFX is a decentralized foreign exchange protocol deployed on Polygon, Ethereum & Arbitrum. DFX was founded in 2021 by Kevin Zhang and Adrian Li.

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

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Exchanges (DEX)

DFX Finance

# DFX Finance Revenue Methodology

## 1. Overview

DFX revenue represents the protocol's share of trading fees generated on the DFX decentralized exchange across Ethereum, Polygon, and Arbitrum networks. The metric calculates daily protocol revenue by applying a 50% protocol fee rate to total trading fees collected from AMM trades, but only for trades occurring after February 13, 2023, when protocol fees were introduced.

## 2. Data sources

The calculation relies on these underlying data sources:
- **Blockchain events**: Parsed DFX `Trade` events from v1 and v2 contracts across Ethereum, Polygon, and Arbitrum networks, including `Curve_Trade_event`, `CurveV2_Trade_event`, and `CurveV22_Trade_event` variants
- **Transaction data**: Ethereum, Polygon, and Arbitrum transaction records to obtain user addresses and verify transaction success
- **Contract creation events**: DFX contract creation events (`CurveFactoryV22_NewCurve_event` and `CurveFactoryV22_newCurve_function`) used to determine fee tiers for trading pairs on Ethereum and Polygon
- **Token metadata**: Token symbols and decimal place information for proper amount normalization
- **External data**: End-of-day token price feeds for USD conversion of trading volumes

## 3. Step-by-step calculation

### Component A: Trade event extraction
- **Purpose**: Captures all DFX trading activity across supported chains and contract versions
- **Logic**: Extracts trade events from DFX v1 contracts (`Curve_Trade_event`) on Ethereum and Polygon, and v2 contracts (`CurveV2_Trade_event` and `CurveV22_Trade_event`) on Ethereum, Polygon, and Arbitrum. Each trade event contains origin and target token addresses, traded amounts, and the trading pair contract address. The system joins these events with transaction data to obtain user addresses and ensures only successful transactions are included.
- **Key fields**: `originAmount` and `targetAmount` (token quantities), `origin` and `target` (token addresses), `address` (trading pair contract), `from_address` (user wallet)

### Component B: Fee tier determination
- **Purpose**: Establishes the fee rate charged by each DFX trading pair
- **Logic**: Uses two approaches depending on the chain. For Arbitrum, manually configured fee tiers are applied to specific contract addresses. For Ethereum and Polygon, fee tiers are extracted from contract creation events where the `_epsilon` parameter in the `newCurve` function call represents the fee tier (divided by 10^18 to normalize). For trades occurring before February 13, 2023, a default fee tier of 0.05% is applied regardless of the actual contract configuration.
- **Key fields**: `fee_tier` (percentage fee rate), `account_address` (trading pair contract), `chain` (network identifier)

### Component C: Trading volume calculation
- **Purpose**: Converts raw token amounts to normalized USD trading volumes
- **Logic**: Groups trades by day and trading pair, then normalizes token amounts by dividing by 10 raised to the token's decimal places. Joins with end-of-day token price feeds to convert amounts to USD values. When both tokens in a pair have available prices, takes the lesser of the two USD values to avoid double-counting volume. When only one token has a price, uses that single value. If neither token has a price, the trading volume is recorded as zero.
- **Key fields**: `token0_amount` and `token1_amount` (normalized quantities), `trading_volume` (USD value), `timestamp` (daily aggregation)

### Component D: Fee calculation
- **Purpose**: Calculates total fees collected from trading activity
- **Logic**: Multiplies the USD trading volume for each trade by the applicable fee tier for that trading pair. Aggregates fees daily across all trading pairs and chains. The fee calculation uses the time-sensitive fee tier logic where trades before February 13, 2023 use the 0.05% default rate, while later trades use contract-specific rates.
- **Key fields**: `fees` (USD fee amount), `trading_volume` (USD trading amount), `fee_tier` (percentage rate)

### Final aggregation
- **Combining components**: The final revenue calculation takes the daily aggregated fees and applies the protocol fee rate
- **Currency conversion**: All amounts are already converted to USD during the trading volume calculation step using end-of-day price feeds
- **Time aggregation**: Data is aggregated to daily boundaries using day truncation of trade timestamps
- **Final calculation**: Protocol revenue equals total fees multiplied by 0.5 (50%) for trades after February 13, 2023, and zero for all trades before this date. This creates a step function where protocol revenue begins accruing only after the protocol fee implementation date.

*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.

DFX FinanceDFX

Revenue

Revenue

Competitive landscape

Chain breakdown