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Etherex

# Etherex Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the total fees and incentives earned by liquidity providers (LPs) on the Etherex protocol. This metric combines two revenue streams: trading fees earned from swap activity (net of protocol fees) and additional rewards distributed through gauge incentive programs. The calculation aggregates these components daily to show the total value accrued to liquidity providers, excluding protocol-native token emissions.

## 2. Data sources

- **Swap events**: Parsed `Swap` events from Etherex v2 and v3 pools on Linea blockchain, containing token amounts and pool addresses
- **Pool configuration events**: Parsed pool creation, fee adjustment, and fee split configuration events from Etherex factories and pool factories on Linea
- **Gauge reward events**: Parsed `NotifyReward` events from Etherex v2 and v3 gauge contracts on Linea, containing reward token addresses and amounts
- **Transaction data**: Linea transaction records for identifying user addresses
- **Token price feeds**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimals and symbols for amount normalization and pair naming

## 3. Step-by-step calculation

### Component A: Trading fee earnings
- **Purpose**: Calculate fees earned by LPs from trading activity, net of protocol fees
- **Logic**: Extract swap events from both Etherex v2 (`Pair_Swap_event`) and v3 (`Pool_Swap_event`) contracts on Linea. For v2 swaps, calculate net token amounts as the difference between `amount_in` and `amount_out` for each token. For v3 swaps, use the `amount0` and `amount1` values directly from the swap event. Join with pool configuration data to get fee tiers and fee splits applicable at the time of each trade. Convert token amounts to USD using end-of-day price feeds, taking the lesser of the two token USD values to prevent price manipulation. Calculate trading fees as trading volume multiplied by fee tier multiplied by the LP portion `(1 - fee_split)`
- **Key fields**: `token0_amount`, `token1_amount`, `fee_tier` (fee percentage), `fee_split` (protocol portion), `trading_volume` (USD value)

### Component B: LP reward incentives  
- **Purpose**: Calculate additional rewards distributed to LPs through gauge programs
- **Logic**: Extract `NotifyReward` events from Etherex v2 and v3 gauge contracts on Linea. Filter out REX token rewards using the hardcoded token address `0xefd81eec32b9a8222d1842ec3d99c7532c31e348`. Convert reward amounts to USD using end-of-day price feeds and correct for token decimals. Aggregate rewards by day to match the trading fees time grain
- **Key fields**: `token_address` (reward token), `amount` (reward quantity), converted to USD value

### Final aggregation
- **Combining components**: Union the trading fee earnings and LP reward incentives, both structured with daily timestamps and USD amounts
- **Currency conversion**: All amounts converted to USD using end-of-day price feeds joined by timestamp, chain, and token address
- **Time aggregation**: Both components aggregated to daily boundaries using `timestamp_trunc` to day level
- **Final calculation**: Sum of trading fees earned by LPs `(trading_volume × fee_tier × (1 - fee_split))` plus LP reward incentives from gauges, excluding REX emissions, aggregated daily per protocol and chain

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

Portion of fees distributed to service providers or supply-side participants.

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