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.

governance

github

twitter

discord

etherscan

website

Lending

Euler

# euler Revenue Methodology

## 1. Overview

Revenue measures the total value captured by euler from its decentralized lending and exchange protocols. For Euler Lending, revenue is generated from a portion of the interest paid by borrowers, which is captured as protocol and governor shares. For Euler Swap, revenue is derived from trading fees executed through the protocol's liquidity pools. All collected fees are normalized by decimal precision and converted to USD using end-of-day price feeds.

## 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, Sonic, Avalanche, and 7 other chains.
- **External data**: End-of-day price feeds for supported assets and asset metadata for decimal normalization.

## 3. Step-by-step calculation

### Component A: Euler Lending fee tracking

- **Purpose**: Captures interest-based fees generated within lending vaults.
- **Logic**: `VaultStatus` events are parsed to monitor the `accumulated_fees` field for each market. The difference in accumulated fees between consecutive events is calculated to determine periodic earnings. In instances where fees are converted and the accumulated balance is reset to zero, revenue is identified via `protocol_shares` and `governor_shares` from `ConvertFees` events. These values are adjusted by the vault exchange rate, which is derived by dividing the sum of `cash` and `total_borrows` by `total_shares`.
- **Key fields**: `accumulated_fees`, `protocol_shares`, `governor_shares`, `cash`, `total_borrows`, and `total_shares`.

### Component B: Euler Swap fee tracking

- **Purpose**: Calculates revenue generated from trading activity across swap pools.
- **Logic**: `Swap` events are parsed to extract trade amounts for each token pair. For pools utilizing Uniswap V4 infrastructure, trade data is synchronized using `Initialize` events and internal trade records. Daily trading volume is determined by taking the lesser USD value of the two assets involved in a swap to prevent distortion from price manipulation. Revenue is then calculated by applying the specific `fee_tier` (extracted from `PoolConfig` events) to the daily trading volume.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, and `fee_tier`.

### Component C: USD conversion and aggregation

- **Purpose**: Normalizes all revenue components into a unified USD metric.
- **Logic**: All raw asset amounts are normalized by their respective decimal precision. These values are multiplied by end-of-day price feeds to determine the USD value. For assets on the Bob chain, specific metadata mappings are utilized to ensure accurate price application. The resulting values from Euler Lending and Euler Swap are aggregated by chain and date using UTC day boundaries.
- **Key fields**: `price_usd`, `decimals`, and `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.

EulerEUL

Revenue

Revenue

Competitive landscape

Chain breakdown