# dYdX Chain Fees Methodology

## 1. Overview

Fees measures the total value users pay to use the dYdX Chain application. This metric encompasses both the trading fees generated by order matches on the decentralized exchange and the network-level transaction fees paid by users to validators. It reflects the total economic value generated by user activity on dYdX Chain.

## 2. Data sources

- **Blockchain events**: `match` events from the messaging system and transaction data from dYdX Chain
- **External data**: End-of-day price feeds for native assets

## 3. Step-by-step calculation

### Component A: Trading fee extraction

- **Purpose**: Captures the fees generated from trading activity on the dYdX Chain order book.
- **Logic**: `match` events are parsed from the messaging system to identify executed trades. Taker order fees and maker order fees are extracted from the event attributes. As these values are denominated in USDC quantums, they are normalized by six decimals of precision.
- **Key fields**: `taker_order_fee_raw` and `maker_order_fee_raw` from the messaging system event attributes.

### Component B: Transaction fee extraction

- **Purpose**: Captures the network-level costs associated with processing transactions on dYdX Chain.
- **Logic**: Transaction records are retrieved from dYdX Chain. For each transaction, the transaction fee and the transaction tip are identified. The total transaction cost is calculated by summing these two values. Transactions where the fee is null are excluded from the calculation.
- **Key fields**: `transaction_fee` and `transaction_tip` from transaction records.

### Component C: USD conversion and aggregation

- **Purpose**: Normalizes all collected fee components into a single USD value for daily reporting.
- **Logic**: Network-level transaction fees are normalized by 18 decimals of precision and multiplied by the end-of-day price of the native dYdX asset. Trading fees, already denominated in USDC, are aggregated with the converted transaction fees. All data is summed by day using UTC boundaries, and a zero-filling strategy is applied to ensure continuity in the time series.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Blockchains (L1)

Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

dYdX Chain

Fees

Fees

Chain breakdown