# dYdX V4 Revenue Methodology

## 1. Overview

Revenue measures the portion of trading fees retained by dYdX V4 from all executed trades on the dYdX Chain. For dYdX V4, 100% of the fees generated through order matching are classified as protocol revenue, as the protocol retains the full amount of transaction fees. These fees are collected from both makers and takers and are subsequently distributed to network participants such as validators and stakers.

## 2. Data sources

- **Blockchain events**: `match` events from `message_events`, covering dYdX Chain
- **External data**: Asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Trading fee extraction

- **Purpose**: Captures the raw fee amounts paid by makers and takers for every trade execution.
- **Logic**: `match` events are parsed from `message_events` on the dYdX Chain. The taker fee amount and maker fee amount are extracted from the `taker_order_fee_quote_quantums` and `maker_order_fee_quote_quantums` fields respectively. These fields represent the fees paid in USDC-denominated quantums for each order match.
- **Key fields**: `taker_order_fee_quote_quantums`, `maker_order_fee_quote_quantums`, `block_timestamp`

### Component B: Revenue normalization and aggregation

- **Purpose**: Converts raw on-chain fee data into normalized USD revenue values.
- **Logic**: Raw fee quantums are normalized by decimal precision to account for the USDC denomination. Total fees are calculated as the sum of taker and maker fees. Because the protocol has not activated a community tax or external fee share at the blockchain level, and retains the entirety of the trading fees, revenue is set equal to 100% of the collected fees.
- **Key fields**: `taker_order_fee_usd`, `maker_order_fee_usd`, `fees`

### Component C: USD conversion and final aggregation

- **Purpose**: Standardize revenue values and aggregate them into a daily time series.
- **Logic**: Daily revenue is calculated by summing all trade-level revenue values within UTC day boundaries. Since the base currency for fees on dYdX V4 is USDC, values are treated as USD-equivalent. Any failed transactions or transactions with null fee values are excluded from the aggregation.
- **Key fields**: `timestamp`, `revenue`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

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 V4

Revenue

Revenue

Chain breakdown