# Euler Lending Revenue Methodology

## 1. Overview

Revenue measures the portion of interest and fees retained by the Euler Lending protocol. For Euler Lending (V2), this represents the protocol-retained interest accrued by borrowers, which is captured within individual vaults (EVaults). Revenue is distinguished from supply-side fees, which are distributed to the lenders providing liquidity to the protocol. This metric is essential for evaluating the protocol's earnings generated from its lending and borrowing markets across multiple blockchain networks.

## 2. Data sources

- **Blockchain events**: `VaultStatus`, `ConvertFees`, and `GovSetInterestFee` events from `EVault` contracts, and `ProxyCreated` events from `EVaultFactory` contracts, covering Ethereum, Arbitrum, Base, Avalanche, and 6 other chains
- **External data**: End-of-day price feeds for assets supported as collateral or borrowed assets

## 3. Step-by-step calculation

### Component A: Market identification and interest fee tracking

- **Purpose**: Map lending vaults to their respective underlying assets and identify the protocol's take rate.
- **Logic**: Market accounts and their underlying asset addresses are identified using `ProxyCreated` events from `EVaultFactory` contracts. The protocol interest fee (take rate) is initialized at 10% and updated dynamically via `GovSetInterestFee` events from `EVault` contracts. These fee factors are filled forward to ensure a continuous record of the protocol's share of interest for every market.
- **Key fields**: `account_address`, `token_address`, `interest_fee`

### Component B: Accumulated fee extraction and delta calculation

- **Purpose**: Capture the protocol's share of interest accrued in the vaults.
- **Logic**: `accumulated_fees` are tracked using `VaultStatus` events from `EVault` contracts. Daily revenue is determined by calculating the difference in accumulated fees between subsequent events. In instances where fees are harvested or converted, `ConvertFees` events are parsed to capture `protocol_shares` and `governor_shares`. The revenue delta is adjusted if the accumulated fee balance is reset to zero, ensuring that all distributed protocol earnings are accounted for in the period they were earned.
- **Key fields**: `accumulated_fees`, `protocol_shares`, `governor_shares`

### Component C: Exchange rate adjustment and normalization

- **Purpose**: Convert vault shares into underlying asset amounts and normalize by decimal precision.
- **Logic**: The raw fee deltas are multiplied by the vault's current exchange rate to determine the actual amount of the underlying asset earned by the protocol. The exchange rate is calculated as the sum of `cash` and `total_borrows` divided by `total_shares`. These values are extracted from the same `VaultStatus` events used for fee tracking. The resulting asset amounts are then normalized based on the specific decimal precision of the underlying asset.
- **Key fields**: `cash`, `total_borrows`, `total_shares`, `decimals`

### Component D: USD conversion and final aggregation

- **Purpose**: Normalize revenue values to USD for cross-chain and cross-asset comparison.
- **Logic**: The normalized asset amounts are multiplied by end-of-day price feeds. For assets on the Bob chain where standard feeds may be unavailable, prices are supplemented with asset metadata and price data from alternative end-of-day sources. Revenue is aggregated by day, chain, and product using UTC day boundaries.
- **Key fields**: `price_usd`, `timestamp`

*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

Lending

Lenders deposit funds into Euler and receive interest payments from borrowers (supply-side fees).

Euler is a non-custodial lending protocol built on Ethereum. Euler was founded by Michael Bentley, Doug Hoyte & Jack Prior and launched in 2021.

EUL tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Euler’s investors include Paradigm, Lemniscap, Launchhub Ventures, etc.

Euler Lending

Revenue

Revenue

Chain breakdown