# EulerSwap Fees Methodology

## 1. Overview

Fees measures the total value paid by traders to execute swaps on EulerSwap. These fees are determined by the specific fee tier assigned to each liquidity pool and are collected to compensate liquidity providers and the protocol. This metric serves as the primary indicator of economic activity and value generation for the EulerSwap product.

## 2. Data sources

- **Blockchain events**: `Swap` events from `EulerSwap` contracts, `PoolDeployed` and `PoolConfig` events from `EulerSwapFactory` contracts, and `Initialize` events from `PoolManager` contracts, covering Ethereum, Arbitrum, Avalanche, Base, and 4 other chains
- **External data**: End-of-day price feeds for traded assets

## 3. Step-by-step calculation

### Component A: Trading volume extraction

- **Purpose**: Capture the gross value of trades across all supported pools.
- **Logic**: Trade data is parsed from `Swap` events from `EulerSwap` contracts. For pools integrated with Uniswap V4, trade activity is identified from Uniswap V4 base trade records by filtering for specific Euler-linked pool identifiers. The raw change in token balances is extracted for each swap to determine the input and output amounts. All amounts are normalized by the decimal precision of the respective assets.
- **Key fields**: `token0_amount`, `token1_amount`, `account_address` (pool identifier)

### Component B: Fee tier identification

- **Purpose**: Determine the percentage-based fee applied to each trade.
- **Logic**: Fee tiers are retrieved by joining trade events with pool metadata. These metadata records are populated from `PoolConfig` events emitted by `EulerSwapFactory` contracts or `Initialize` events from `PoolManager` contracts. The fee tier is expressed as a decimal value representing the portion of volume collected as fees.
- **Key fields**: `fee_tier`

### Component C: Volume-to-USD conversion and filtering

- **Purpose**: Normalize trading activity to USD while mitigating data quality issues.
- **Logic**: Trading volumes for both assets in a pair are converted to USD using end-of-day price feeds. To prevent distortions from price manipulation or low-liquidity pairs, a filtering mechanism is applied where the lower USD value between the two traded assets is selected as the canonical volume for the transaction.
- **Key fields**: `price_usd`

### Component D: Final fee calculation and aggregation

- **Purpose**: Compute total fees and aggregate data by time and chain.
- **Logic**: Total fees are calculated by multiplying the filtered USD trading volume by the specific fee tier of the liquidity pool. The resulting values are aggregated with daily granularity using UTC day boundaries across all supported chains.
- **Key fields**: `trading_volume`, `fee_tier`

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

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

Fees

Exchanges (DEX)

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.

EulerSwap

Fees

Fees

Chain breakdown