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Exchanges (DEX)

Etherex

# Etherex Fees Methodology

## 1. Overview

The Etherex fees metric measures the total fees generated by the Etherex decentralized exchange protocol on Linea. This includes both fees paid to liquidity providers (supply-side fees) and fees earned by the protocol (revenue). The metric captures trading fees from both v2 and v3 protocol versions, plus additional reward distributions and voting bribes, providing a comprehensive view of the protocol's fee generation activity.

## 2. Data sources

The calculation uses several types of blockchain data and external feeds:

- **Trading events**: Parsed `Swap` events from Etherex v2 `Pair` contracts and v3 `Pool` contracts on Linea blockchain
- **Pool configuration events**: Parsed factory events including `PairCreated`, `PoolCreated`, `SetPairFee`, `FeeAdjustment`, `SetPairFeeSplit`, and `SetPoolFeeProtocol` events from Etherex factory contracts
- **Reward distribution events**: Parsed `NotifyReward` events from Etherex gauge contracts for both v2 and v3 protocols
- **Voting incentive events**: Parsed `VotesIncentivized` events from Etherex fee distributor contracts
- **Transaction data**: Linea blockchain transaction records to map contract interactions to user addresses
- **Price data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimals and symbols for amount correction and pair identification

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate daily USD trading volumes for each Etherex pool with applicable fee rates
- **Logic**: Extract swap events from both v2 `Pair_Swap` and v3 `Pool_Swap` events on Linea. For v2, calculate token amount changes as `amount_in - amount_out` for each token. For v3, use direct `amount0` and `amount1` values. Join with pool metadata to get token addresses and decimals. Correct token amounts by dividing by `10^decimals`. Convert to USD using end-of-day price feeds, taking the minimum USD value between the two tokens in each pair to filter out price manipulation effects. Join with pool fee configuration data to determine applicable fee tiers and protocol fee splits based on the timing of configuration changes.
- **Key fields**: `token0_amount`, `token1_amount`, `fee_tier`, `fee_split`, `trading_volume`

### Component B: Fee tier and split configuration
- **Purpose**: Track dynamic fee rates and protocol fee splits for each trading pool over time
- **Logic**: Process pool creation and configuration change events to build time-series records of fee settings. For v2 pairs, default to 0.3% fee tier if no factory default is set. Track fee tier changes from `SetPairFee`, `FeeAdjustment`, and initial pool creation events, normalizing values by dividing by `10^6`. Track protocol fee split changes from `SetPairFeeSplit` and `SetPoolFeeProtocol` events, normalizing by dividing by `10^6`. Create order-based ranges using block number and log index to determine which fee settings apply to each trade based on timing.
- **Key fields**: `fee_tier`, `fee_split`, `next_block_timestamp`, `order_id`

### Component C: LP reward distributions
- **Purpose**: Calculate additional fees distributed to liquidity providers through gauge rewards
- **Logic**: Extract `NotifyReward` events from both v2 and v3 gauge contracts. Filter out REX token emissions by excluding the REX token address `0xefd81eec32b9a8222d1842ec3d99c7532c31e348`. Correct token amounts using decimal metadata and convert to USD using end-of-day price feeds. Aggregate daily by product ID and chain.
- **Key fields**: `token_address`, `amount`

### Component D: Voting bribe revenue
- **Purpose**: Calculate revenue from voting incentive payments
- **Logic**: Extract `VotesIncentivized` events from fee distributor contracts. Convert xREX token addresses to REX addresses for consistent pricing. Correct token amounts using decimal metadata and convert to USD using end-of-day price feeds. Aggregate daily by product ID and chain.
- **Key fields**: `token_address`, `amount`

### Component E: Supply-side fees calculation
- **Purpose**: Calculate total fees going to liquidity providers
- **Logic**: For trading fees, multiply trading volume by fee tier and by one minus the protocol fee split: `trading_volume * fee_tier * (1 - fee_split)`. Add LP reward distributions from gauge contracts. Aggregate daily by chain and product ID.
- **Key fields**: `fees_supply_side`

### Component F: Protocol revenue calculation
- **Purpose**: Calculate total fees earned by the protocol
- **Logic**: For trading fees, multiply trading volume by fee tier and by the protocol fee split: `trading_volume * fee_tier * fee_split`. Add voting bribe amounts. Aggregate daily by chain and product ID.
- **Key fields**: `revenue`

### Final aggregation
- **Combining components**: Union supply-side fees and protocol revenue to create a comprehensive view of all fees generated by the protocol
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds, with trading volumes using the minimum of the two token values to prevent price manipulation impact
- **Time aggregation**: All events are aggregated to daily granularity using `timestamp_trunc` to day boundaries
- **Final calculation**: The total fees metric represents the sum of all trading fees (both supply-side and protocol portions), LP reward distributions, and voting incentive payments, providing a complete picture of the economic activity and fee generation of the Etherex protocol

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

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

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