# Liquid Revenue Methodology

## 1. Overview

Revenue for Liquid measures the management fees (platform fees) retained by the protocol from its automated yield-generating vaults. These fees are accrued daily based on the total capital deployed within the vaults and the specific fee parameters defined in the vault accountant contracts. This metric represents the protocol's share of the value managed by the Liquid product, providing a measure of the earnings generated from automated liquidity management strategies.

## 2. Data sources

- **Blockchain events**: State reads for vault supply, accountant configurations (including exchange rates and fee basis points), and token metadata from Liquid vault and accountant contracts on Ethereum
- **External data**: End-of-day price feeds for vault base assets, including ETH, BTC, and stablecoins

## 3. Step-by-step calculation

### Component A: Vault state and configuration tracking

- **Purpose**: Identify active vaults and extract the necessary parameters for fee calculation
- **Logic**: Vault addresses are mapped to their respective accountant contracts. State reads are performed against these accountant contracts to retrieve the total shares, exchange rates, and the platform fee basis points. The configuration includes vaults categorized into ETH, BTC, and USD groups to ensure correct base asset association.
- **Key fields**: `vault_address`, `accountant_address`, `platform_fee` (basis points), `exchange_rate`, and `total_shares`

### Component B: Capital deployed calculation

- **Purpose**: Determine the total value of assets managed by the vaults as the basis for fee accrual
- **Logic**: The managed amount for each vault is calculated by multiplying the total supply of vault shares by the exchange rate. These values are normalized by the decimal precision of the accountant and the base asset. To prevent double-counting of assets already captured in other protocol products, adjustments are applied to the ETH and BTC vault groups by subtracting specific wrapped asset balances (WETH and WBTC) as identified by protocol oracles.
- **Key fields**: `total_supply`, `exchange_rate`, `accountant_decimals`, and `base_decimals`

### Component C: Management fee accrual

- **Purpose**: Calculate the daily revenue generated from the managed assets
- **Logic**: Daily revenue is derived by applying the annual platform fee rate to the calculated capital deployed. The platform fee, stored in basis points, is divided by 10,000 to convert to a decimal and then divided by 365 to determine the daily accrual portion. If no platform fee is defined in the accountant state, the revenue for that vault is set to zero.
- **Key fields**: `platform_fee` and `amount` (capital deployed)

### Component D: USD conversion and aggregation

- **Purpose**: Normalize revenue values into a common currency for reporting
- **Logic**: Accrued fee amounts are normalized by the decimal precision of the underlying base assets. These normalized values are multiplied by end-of-day price feeds for the respective assets to calculate the revenue in USD. The data is aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `amount`, `token_address`, and `price_usd`

*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

Liquid staking

Stakers deposit funds into Ether.fi and receive a return on investment in the form of staking rewards (supply-side fees).

Ether.fi is a non-custodial staking protocol built on Ethereum and other blockchains. Ether.fi was founded by Mike Silagadze and launched in 2023.

Ether.fi team & investors own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Ether.fi’s investors include North Island Ventures, Chapter One, Node Capital, and Arthur Hayes.

Liquid

Revenue

Revenue

Chain breakdown