# dYdX V3 Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute trades on dYdX V3. This metric reflects the total economic value generated by trading activity on the dYdX V3 perpetual exchange, which is built on the StarkEx Layer 2 scalability engine. Fees are collected from traders to compensate for the provision of liquidity and the operation of the order matching system.

## 2. Data sources

- **Off-chain data**: API trading snapshots and manual historical data dumps from dYdX V3, covering the StarkEx implementation on Ethereum
- **Legacy data**: Historical revenue and fee data synchronized via legacy data pipelines

## 3. Step-by-step calculation

### Component A: dYdX V3 API fee extraction

- **Purpose**: Capture trading fees using automated API snapshots from the dYdX V3 exchange.
- **Logic**: Fee data is extracted from raw API scrapes that provide 24-hour rolling totals of trading activity. Hourly snapshots are collected and aggregated. To represent daily values, a specific hourly snapshot is selected (preferencing 00:00, 01:00, or 02:00 UTC). Because the source data represents a rolling 24-hour window, the resulting value is assigned to the previous calendar day to align the snapshot with the correct period of economic activity.
- **Key fields**: `fee_amount`, `insertedAt` (timestamp)

### Component B: Historical and manual data integration

- **Purpose**: Ensure complete data coverage by integrating historical records and manual overrides.
- **Logic**: Historical fee data is integrated from three primary sources: legacy revenue tables, a manual data dump covering periods through early 2023, and a manual configuration table. Manual fee entries are used to patch gaps in API collection or to override inaccurate data points identified during validation. These disparate sources are combined using a union logic that prioritizes manual overrides through full joins.
- **Key fields**: `Sum_of_Fee`, `Created_At` (timestamp), `fee_amount`

### Component C: Normalization and aggregation

- **Purpose**: Standardize fee values into a unified daily USD format.
- **Logic**: Fees from all components are aggregated at a daily granularity. Amounts are normalized by decimal precision. For legacy records where fees were previously recorded as revenue, the values are reclassified as fees to maintain consistency with the canonical metric definition. All values are converted to USD based on the asset's valuation at the time of the daily snapshot. Amounts are zero-filled for any days where no activity is recorded.

*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

Exchanges (DEX)

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 V3

Fees

Fees

Chain breakdown