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Dolomite

# Dolomite Cost of revenue Methodology

## 1. Overview

The cost of revenue metric for Dolomite measures the USD value of ARB tokens paid to users when they exercise oARB (options on ARB) positions. This represents the protocol's cost of providing leveraged ARB exposure through vesting positions. When users close their oARB positions, they receive ARB tokens that represent a direct cost to the protocol. The metric aggregates these costs daily in USD terms.

## 2. Data sources

- **Blockchain events**: Parsed `VesterProxy_VestingPositionCreated_event` and `VesterProxy_PositionClosed_event` logs from Dolomite's VesterProxy contract on Arbitrum
- **Token metadata**: Token information including decimal precision for ARB tokens on Arbitrum
- **External data**: End-of-day token price feeds for ARB/USD conversion

## 3. Step-by-step calculation

### Component A: Vesting position creation tracking
- **Purpose**: Captures ARB token amounts locked when oARB vesting positions are created
- **Logic**: Extracts `VesterProxy_VestingPositionCreated_event` logs from Dolomite's VesterProxy contract on Arbitrum. Records the `vesting_id` (unique position identifier), `amount` of ARB tokens allocated to each position, account address, and creation timestamp. Sets token address to ARB token contract address for later price lookup.
- **Key fields**: `vesting_id` for position matching, `cost_of_revenue_amount` containing raw ARB token amount, `token_address` set to ARB contract address, account and timing information

### Component B: Vesting position closure tracking  
- **Purpose**: Captures when oARB positions are closed and costs are realized
- **Logic**: Extracts `VesterProxy_PositionClosed_event` logs from the same VesterProxy contract. Records the `vesting_id` of closed positions, `ethCostPaid` (though this field is captured, it's not used in final calculation), account address, and closure timestamp. This event indicates when the protocol pays out ARB tokens to users.
- **Key fields**: `vesting_id` for matching with creation events, `revenue_amount` containing ETH cost paid (not used in final calc), closure timing information

### Component C: Cost calculation and USD conversion
- **Purpose**: Combines position creation and closure data to calculate USD cost of ARB tokens paid out
- **Logic**: Joins vesting position creation and closure events by matching `vesting_id` and `chain`. When positions close, retrieves the original ARB token `amount` from the creation event. Applies decimal adjustment by dividing the raw ARB amount by 10 raised to the token's decimal places. Converts to USD using end-of-day ARB price on the closure date (truncated to day boundary).
- **Key fields**: `cost_of_revenue_amount_usd` containing final USD value, `timestamp` truncated to daily boundaries for aggregation

### Final aggregation
- **Combining components**: Sums all USD-converted ARB costs by day across all closed positions
- **Currency conversion**: Uses end-of-day ARB/USD price feeds matched to position closure dates for consistent daily pricing
- **Time aggregation**: Groups by daily timestamp boundaries using timestamp truncation to day
- **Final calculation**: Aggregates total daily cost of revenue in USD, representing all ARB tokens paid to users when they exercised oARB positions that day. Applies finalization macro for schema validation and forward-fills zeros for days with no position closures to maintain continuous time series.

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

Expenses paid to third parties to deliver core service output.

DolomiteDOLO

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown