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Fathom

# Fathom Revenue Methodology

## 1. Overview

Fathom protocol revenue represents the total daily revenue earned by the Fathom protocol across its two main products: Fathom DEX and Fathom Lending. The metric combines the protocol's share of trading fees from its decentralized exchange (5% of total fees) with revenue from its lending platform (interest payments and flash loan fees). This metric measures the protocol's ability to generate sustainable income from its DeFi services on the XDC blockchain.

## 2. Data sources

The calculation relies on several types of blockchain data and external feeds:
- **DEX trading events**: Parsed `Swap` events from Fathom DEX trading pairs on XDC, containing token amounts and trading pair information
- **Trading pair creation**: `PairCreated` events from Fathom DEX factory contract establishing trading pairs with fee tiers
- **Lending treasury events**: `MintedToTreasury` events from Fathom Lending pools representing the protocol's share of interest payments
- **Flash loan events**: `FlashLoan` events from Fathom Lending pools with premium fee information
- **Reserve factor updates**: `ReserveFactorChanged` events tracking changes to protocol revenue share parameters
- **Market initialization**: `ReserveInitialized` events for lending market setup and token mappings
- **Transaction records**: XDC blockchain transaction data for user identification and context
- **End-of-day price feeds**: Daily USD price data for all tokens involved in trading and lending
- **Token metadata**: Token symbols, decimal places, and contract addresses for data normalization
- **Treasury accrual state**: External state data tracking cumulative treasury accruals for interest calculations

## 3. Step-by-step calculation

### Component A: DEX revenue calculation
- **Purpose**: Calculate the protocol's 5% share of trading fees from Fathom DEX
- **Logic**: Extract all `Swap` events from Fathom DEX trading pairs, identifying token amounts exchanged in each trade. Calculate the absolute value of token amount changes for both tokens in each swap. Join with trading pair dimension data to get token decimal places and fee tier information (0.3% for all pairs). Correct token amounts using decimal places, then convert to USD values using end-of-day price feeds, prioritizing the first token's price and falling back to the second token if unavailable. Calculate total trading volume by summing USD values across all swaps. Apply the 0.3% fee tier to get total fees collected, then multiply by 0.05 to get the protocol's 5% revenue share.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` for token amounts, `pair` address for trading pair identification, `fee_tier` for fee percentage, corrected token amounts after decimal adjustment

### Component B: Lending interest revenue calculation  
- **Purpose**: Calculate protocol revenue from lending interest payments
- **Logic**: Track treasury mint events and treasury accrual state data to calculate daily interest revenue. Combine `MintedToTreasury` events with external treasury accrual data to get cumulative interest amounts. Use lag calculations to determine daily changes in cumulative interest, representing new interest earned each day. Join with reserve factor data to determine the protocol's share versus liquidity provider share. Calculate the protocol's revenue portion based on reserve factors, and derive the supply-side fees as the remainder. Apply decimal correction and USD conversion using end-of-day price feeds.
- **Key fields**: `amountMinted` from treasury events, `reserve_factor` for revenue split calculations, `asset` for token identification, daily interest changes from cumulative calculations

### Component C: Flash loan revenue calculation
- **Purpose**: Calculate protocol revenue from flash loan fees
- **Logic**: Extract `FlashLoan` events from Fathom Lending pools containing loan amounts and premium fees paid. Apply a 0.04% fee split (0.0004 multiplier) to the premium amounts to determine the protocol's share of flash loan revenue. Aggregate flash loan revenues daily by token and apply decimal correction and USD conversion.
- **Key fields**: `amount` for loan size, `premium` for fees paid, `asset` for token identification, calculated revenue after fee split application

### Final aggregation
- **Combining components**: Union DEX revenue (from fee calculations) with lending revenue (from both interest and flash loan sources). Sum all revenue streams by timestamp, chain, and product identifier to get total daily protocol revenue.
- **Currency conversion**: All revenue components are converted to USD using end-of-day price feeds, with decimal correction applied based on token metadata before conversion
- **Time aggregation**: Revenue is aggregated to daily boundaries using timestamp truncation, with all events within a day contributing to that day's total
- **Final calculation**: The final metric represents the sum of: (DEX trading volume × 0.3% fee tier × 5% protocol share) + (lending interest payments × reserve factor) + (flash loan premiums × 0.04% fee split), all converted to USD and aggregated daily

*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.

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