# EulerSwap Revenue Methodology

## 1. Overview

Revenue measures the portion of trading fees that are retained by the protocol from activity on EulerSwap. These earnings are generated through a designated fee tier applied to every trade executed across the protocol's liquidity pools. Revenue serves as a key indicator of the protocol's ability to monetize its decentralized exchange infrastructure across multiple blockchain environments, including integrations with Uniswap V4.

## 2. Data sources

- **Blockchain events**: `Swap` events from `EulerSwap` contracts, `PoolConfig` and `PoolDeployed` events from `EulerSwapFactory` contracts, and `Initialize` events from Uniswap V4 `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: EulerSwap trading volume extraction

- **Purpose**: Captures the raw volume of assets traded through EulerSwap liquidity pools
- **Logic**: Trading activity is identified by parsing `Swap` events from `EulerSwap` contracts and trade-related data from Uniswap V4 base trade abstractions. For each transaction, the net change in asset balances (inflow minus outflow) is calculated for both tokens in the trading pair. Self-transfers and internal liquidity movements are filtered by validating the transaction signers and contract addresses.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, and `token_address`

### Component B: Fee tier and pair identification

- **Purpose**: Determines the specific fee percentage applicable to each trading pool
- **Logic**: Liquidity pool metadata is retrieved by parsing `PoolDeployed` and `PoolConfig` events from `EulerSwapFactory` contracts. For pools integrated with Uniswap V4, initialization parameters are extracted from `Initialize` events from `PoolManager` contracts. The fee tier is normalized by decimal precision to establish the protocol's take rate for every swap occurring within that specific pool.
- **Key fields**: `fee_tier`, `pool_id`, and `token_address`

### Component C: Revenue aggregation and USD conversion

- **Purpose**: Calculates the final revenue value in a standardized currency
- **Logic**: Daily trading volume is multiplied by the corresponding fee tier for each pool to determine the revenue generated in the base assets. These values are then normalized by the decimal precision of the respective assets. The resulting amounts are converted to USD using end-of-day price feeds. Final values are aggregated by day, chain, and product using UTC day boundaries.
- **Key fields**: `trading_volume`, `fee_tier`, 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

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

Revenue

Revenue

Chain breakdown