# dYdX Chain Average transaction fee Methodology

## 1. Overview

Average transaction fee measures the average cost paid by users per transaction on dYdX Chain. This metric provides insight into the typical cost of interacting with the network, accounting for both protocol-level trading fees and network-level transaction fees. It is a key indicator of network affordability and usage costs for institutional and retail participants.

## 2. Data sources

- **Blockchain events**: Transaction records and `match` events from the dYdX Chain.
- **External data**: End-of-day price feeds for native assets and USDC.

## 3. Step-by-step calculation

### Component A: Network fee extraction

- **Purpose**: Capture the base fees and tips paid at the blockchain transaction level.
- **Logic**: Transaction records are parsed from the dYdX Chain to extract fee and tip amounts. Total network fees per transaction are calculated by summing the transaction fee and the transaction tip. Transactions with null fee values are excluded to ensure only successful or validly processed transactions are included.
- **Key fields**: `fee_amount`, `tip_amount`, and `transaction_hash`.

### Component B: Trading fee extraction

- **Purpose**: Capture the fees associated with order execution on the dYdX Chain exchange.
- **Logic**: `match` events are parsed from the system's message events. Fee attributes for both the taker and maker are extracted from each match event. These values are denominated in USDC and represent the protocol-level revenue generated by trading activity.
- **Key fields**: `taker_order_fee_raw` and `maker_order_fee_raw`.

### Component C: Transaction count aggregation

- **Purpose**: Determine the total volume of daily activity to serve as the denominator.
- **Logic**: The total number of unique transaction hashes is aggregated on a daily basis. The count is filtered to include only transactions that have a valid fee associated with them, ensuring consistency between the fee numerator and the transaction denominator.
- **Key fields**: `transaction_hash` and `block_timestamp`.

### Component D: Normalization and average calculation

- **Purpose**: Calculate the final USD-denominated average fee per transaction.
- **Logic**: Network fees are normalized by decimal precision and converted to USD using end-of-day price feeds for the native asset. Trading fees, which are captured in USDC quantums, are normalized and combined with network fees. The total daily fee amount is divided by the daily transaction count to arrive at the average transaction fee. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `fees` and `transaction_count`.

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

Average transaction fee

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

Average transaction fee

Average transaction fee

Chain breakdown