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.

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# euler Fees Methodology

## 1. Overview

Fees measures the total value generated by users of Euler Lending and Euler Swap. For Euler Lending, this includes the total interest paid by borrowers, which is distributed between the protocol (as revenue) and lenders (as supply-side fees). For Euler Swap, fees represent the execution costs paid by traders to liquidity providers based on specific pool fee tiers. This metric is a key indicator of the protocol's economic activity and its ability to generate yield for participants.

## 2. Data sources

- **Blockchain events**: `VaultStatus`, `ConvertFees`, and `GovSetInterestFee` events from `EVault` contracts; `ProxyCreated` events from `EVaultFactory` contracts; `Swap` events from `EulerSwap` contracts; `PoolDeployed` and `PoolConfig` events from `EulerSwapFactory` contracts; and `Initialize` events from `PoolManager` contracts, covering Ethereum, Base, Arbitrum, Avalanche, and 7 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Euler Lending fee tracking

- **Purpose**: To calculate the total interest-based fees generated within lending markets
- **Logic**: `VaultStatus` events are parsed to track changes in accumulated fees, total borrows, and total shares. An exchange rate is calculated as the sum of cash and total borrows divided by total shares. Fee differences are determined by comparing current and previous accumulated fee values. If a fee conversion occurs, as indicated by `ConvertFees` events where accumulated fees reset to zero, the difference is calculated as the sum of protocol and governor shares minus the previous accumulated fee value. Revenue is then calculated by multiplying the fee difference by the exchange rate and normalizing by decimal precision.
- **Key fields**: `accumulated_fees`, `total_borrows`, `total_shares`, `cash`, `protocol_shares`, `governor_shares`

### Component B: Euler Lending supply-side allocation

- **Purpose**: To determine the total fees by accounting for the portion distributed to lenders
- **Logic**: Interest fee factors are extracted from `GovSetInterestFee` events. These factors are filled forward to ensure a continuous daily record for every market identified via `ProxyCreated` events. Total fees are derived by combining protocol revenue with supply-side fees. Supply-side fees are calculated using the formula `(revenue / interest_fee) * (1 - interest_fee)`, which represents the interest paid by borrowers that is allocated to supply-side participants.
- **Key fields**: `interest_fee`, `account_address`, `token_address`

### Component C: Euler Swap fee extraction

- **Purpose**: To capture trading fees generated through the automated market maker infrastructure
- **Logic**: Trading activity is captured from `Swap` events and integrated Uniswap V4 trade records. Fee tiers for each liquidity pool are identified from `PoolConfig` and `Initialize` events. Trading volume is calculated for each transaction by taking the lesser USD value of the two assets involved in the swap to mitigate the impact of potential price manipulation. Fees are then calculated by applying the specific fee tier to the daily trading volume for each pool.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `fee_tier`

### Component D: USD conversion and aggregation

- **Purpose**: To normalize all fee components into a single currency for reporting
- **Logic**: All fee components from Euler Lending and Euler Swap are normalized by asset-specific decimal precision. Values are converted to USD using end-of-day price feeds. For specific assets on the Bob chain not present in standard feeds, price mapping is applied based on asset metadata. Daily totals are aggregated by chain and product using UTC day boundaries.
- **Key fields**: `price_usd`, `token_address`, `chain_id`

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

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

EulerEUL

Fees

Fees

Competitive landscape

Chain breakdown