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.

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dYdX

# dYdX P/F ratio (fully diluted) Methodology

## 1. Overview

The fully diluted price-to-fees (P/F) ratio measures dYdX's valuation relative to its fee generation capacity. This metric divides the protocol's fully diluted market capitalization by its annualized fee revenue, providing insight into how the market values each dollar of fee income generated. The calculation combines fees from multiple dYdX protocol versions and compares them to the token's fully diluted market value.

## 2. Data sources

The calculation draws from several key data sources:

- **dYdX Chain transaction data**: Native blockchain transaction records containing fee and tip amounts for the dYdX Chain
- **dYdX dYdX V4 match events**: Parsed `match` events from dYdX Chain message logs containing maker and taker fee data in USDC quantums
- **StarkEx trading fee API**: Historical trading fee data from dYdX dYdX V3 on StarkEx, collected via API endpoints with 24-hour rolling fee snapshots
- **Manual fee corrections**: Team-provided historical fee data for early 2023 periods where API data required correction
- **End-of-day price feeds**: CoinGecko daily market data providing DYDX token prices and fully diluted token supply
- **Legacy revenue data**: Historical fee data from Fivetran sync for continuity across protocol versions

## 3. Step-by-step calculation

### Component A: dYdX Chain transaction fees
- **Purpose**: Captures native blockchain fees from dYdX Chain operations
- **Logic**: Extracts transaction records from dYdX Chain, filtering out failed transactions (those with null fees). Combines `transaction_fee` and `transaction_tip` amounts for each transaction. Groups transactions by day and sums total fees, then converts from native token decimals (18) to standard units by dividing by 10^18. Applies USD conversion using CoinGecko price data for the 'dydx-chain' token.
- **Key fields**: `transaction_fee`, `transaction_tip`, `block_timestamp` for daily aggregation

### Component B: dYdX dYdX V4 trading fees  
- **Purpose**: Extracts trading fees from dYdX dYdX V4 protocol match events
- **Logic**: Parses `match` events from dYdX Chain message logs to extract `taker_order_fee_quote_quantums` and `maker_order_fee_quote_quantums` values. These quantum values are USDC-denominated, making USD conversion straightforward. Converts from USDC decimals by dividing by 10^6. Groups by day and sums total maker and taker fees.
- **Key fields**: `taker_order_fee_quote_quantums`, `maker_order_fee_quote_quantums`, `block_timestamp`

### Component C: StarkEx dYdX V3 trading fees
- **Purpose**: Captures historical trading fees from dYdX dYdX V3 on StarkEx
- **Logic**: Processes fee data from API endpoints that provide 24-hour rolling fee totals. Takes snapshots at specific UTC hours (00:00, 01:00, or 02:00) to extract daily fee values, preferring earlier hours when available. Applies manual corrections from team-provided data for periods where API values were inaccurate (primarily early 2023). Includes legacy revenue data from Fivetran sync for historical continuity.
- **Key fields**: `fees`, `insertedAt` timestamp for hourly processing, manual `fee_amount` corrections

### Component D: Manual historical fees
- **Purpose**: Provides accurate fee data for early dYdX periods where API data was unreliable
- **Logic**: Uses team-provided daily fee amounts for specific dates in early 2023. This hardcoded data replaces or supplements API data for periods where manual verification was required. Covers the period from January 1, 2023 through early March 2023.
- **Key fields**: Hardcoded timestamp and `fee_amount` pairs

### Component E: Fully diluted market capitalization
- **Purpose**: Calculates the total market value of all DYDX tokens at full dilution
- **Logic**: Retrieves end-of-day token prices and fully diluted supply data from CoinGecko. Handles token transition by using 'dydx' token data before November 27, 2023, and 'dydx-chain' token data after that date, reflecting the migration to dYdX Chain. Multiplies daily token price by fully diluted token supply to get market capitalization.
- **Key fields**: `price_usd`, fully diluted token supply, `daily_timestamp`

### Final aggregation
- **Combining components**: All fee sources are unioned together with consistent schema including `timestamp`, `chain_id`, `product_id`, `version`, and `fees` fields. Fees are aggregated by day across all sources to create a comprehensive daily fees metric.
- **Currency conversion**: dYdX V4 fees are already USD-denominated (USDC quantums), while Chain fees are converted using CoinGecko price data for the native token.
- **Time aggregation**: All components are aggregated to daily boundaries using timestamp truncation to day level.
- **Final calculation**: The P/F ratio divides the fully diluted market cap by annualized fees (daily fees multiplied by 365) using the `calculate_ps` macro, which treats fees as the revenue component in a price-to-sales calculation framework.

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

${market_cap_fully_diluted} / (rolling_avg(${fees}, 30) * 365)

Fully diluted market cap relative to annualized fees.

dYdXDYDX

P/F ratio (fully diluted)

P/F ratio (fully diluted)

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