Users are able to buy “keys” of other users X (Twitter) accounts. By owning a “key” the user gets access to a private chat with the person whose “key” one owns. When a “key” of a users account is traded the user earns a commission (supply-side fees).

friend.tech is a crypto native social media application built on Base. friend.tech was founded by pseudonymous developers known as Racer and Shrimp and launched in 2023.

friend.tech team and investors own the protocol. They currently take a cut of the total trading volume (revenue). friend.tech’s investors include Paradigm.

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friend.tech

# friend.tech Supply-side fees Methodology

## 1. Overview

The FriendTech supply-side fees metric measures total fees earned by content creators and community participants on the FriendTech social trading platform. This metric combines creator fees from FriendTech v1 trades with best friend fees and referral fees from FriendTech v2 club trades. The calculation aggregates these fees daily in USD to show total earnings flowing to the supply side of the platform.

## 2. Data sources

- **Base blockchain events**: Parsed `Trade` events from FriendTech v1 contracts and `Buy`/`Sell` events from FriendTech v2 Clubs contracts
- **Base blockchain function calls**: Parsed `changeProtocolFee` and `changeBestFriendFee` function calls from FriendTech v2 Clubs contracts that update fee tier rates
- **Base blockchain transactions**: Transaction records to identify user addresses and validate successful transactions
- **End-of-day price feeds**: WETH token price data for converting v1 creator fees to USD
- **External price data**: CoinGecko daily market data for FRIEND token pricing to convert v2 club fees to USD

## 3. Step-by-step calculation

### Component A: v1 creator fees
- **Purpose**: Extracts creator fees earned from FriendTech v1 social trading activities
- **Logic**: Collects all successful `Trade` events from the FriendTech v1 contract on Base. Extracts the `subjectEthAmount` field which represents fees paid directly to content creators. These fees are denominated in WETH (Wrapped Ethereum) and require decimal correction by dividing by 1e18. The data is aggregated daily and classified under the social market sector.
- **Key fields**: `subjectEthAmount` (creator fee amounts), `subject` (creator addresses), `ethAmount` (total trade volumes)

### Component B: v2 fee tier tracking
- **Purpose**: Tracks dynamic fee rates for FriendTech v2 club trading fees
- **Logic**: Monitors contract function calls that update protocol and best friend fee rates over time. Creates time-based intervals by capturing `changeProtocolFee` and `changeBestFriendFee` function calls, then using window functions to establish valid date ranges for each fee rate. Fee rates are stored as decimals (divided by 1e18) and applied to trades based on transaction timestamps falling within the valid intervals.
- **Key fields**: `newFee` (updated fee rates), `block_timestamp` (effective dates for fee changes)

### Component C: v2 club trade processing
- **Purpose**: Calculates best friend fees and referral fees from v2 club trades
- **Logic**: Processes both `Buy` and `Sell` events from FriendTech v2 Clubs contracts. For each trade, looks up applicable protocol and best friend fee rates based on transaction timestamp. Calculates `tokens_in` differently for buy trades (total volume divided by 1 + total fee rate) versus sell trades (total volume divided by 1 - total fee rate). Best friend fees equal `tokens_in` multiplied by the best friend fee rate. Referral fees are calculated as residual amounts: for buys, this is total volume minus tokens_in, best friend fees, and protocol fees; for sells, this is tokens_in minus total volume, best friend fees, and protocol fees.
- **Key fields**: `pointsIn`/`pointsOut` (trade volumes), `protocolFee` (protocol fee amounts), calculated `tokens_in`, `best_friend_fee`, `referral_fee`

### Component D: v2 fee USD conversion
- **Purpose**: Converts v2 club fees from FRIEND tokens to USD values
- **Logic**: Since FRIEND tokens are non-transferrable and lack reliable on-chain pricing, the conversion uses CoinGecko daily market data. All v2 trade data is aggregated to daily grain and joined with CoinGecko daily price feeds using the 'friend-tech' identifier. Each fee component (best friend fees and referral fees) is multiplied by the daily USD price to get USD-denominated values.
- **Key fields**: Daily CoinGecko `price_usd` for FRIEND token, converted `best_friend_fee` and `referral_fee` amounts

### Final aggregation
- **Combining components**: V1 creator fees (already in USD after WETH price conversion) are combined with v2 club fees (best friend fees + referral fees in USD) using UNION ALL. Both fee streams are standardized with daily timestamps, Base chain identifier, and social sector classification.
- **Currency conversion**: V1 fees use the standard Token Terminal USD conversion macro with WETH pricing, while v2 fees use direct CoinGecko price multiplication for FRIEND tokens.
- **Time aggregation**: All fees are truncated to daily boundaries and aggregated by day, with zero-filling applied for days without trading activity.
- **Final calculation**: The metric represents the sum of creator fees from v1 trades plus best friend fees and referral fees from v2 club trades, providing total daily USD value flowing to content creators and community participants on the supply side of the FriendTech platform.

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

Portion of fees distributed to service providers or supply-side participants.

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