Users deposit funds into pools, called Hypervisors, and receive a return on investment (supply-side fees) after rebalancing.

Gamma Strategies is an asset management protocol built on Ethereum and other blockchains. Gamma Strategies was founded by an anonymous team and launched in 2020.

GAMMA tokenholders own and govern the protocol. They currently take a cut of the total return on investment & total assets under management paid by liquidity providers (revenue).

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Gamma Strategies

# Gamma Strategies Earnings Methodology

## 1. Overview

Gamma Strategies earnings represent the net profit generated by the protocol's yield aggregator business across multiple blockchain networks and DEX integrations. The metric is calculated as revenue minus expenses, where revenue comes from protocol fees collected on managed liquidity positions and expenses are set to zero (no token incentives). The calculation handles two distinct protocol versions (v1 and v2) with different fee collection mechanisms and supports Uniswap, Zyberswap, and QuickSwap integrations across Ethereum, Arbitrum, Optimism, and Polygon networks.

## 2. Data sources

- **Blockchain events**: Parsed `Rebalance` events from HypervisorV1Uniswap contracts containing yield distribution data
- **Blockchain events**: Parsed `Deposit` events from HypervisorV1Uniswap contracts for token address identification
- **Blockchain events**: Parsed `HypeAdded` events from HypervisorFactory contracts for account versioning and classification
- **Blockchain events**: Parsed `ZeroBurn` events from HypervisorV2 contracts containing dynamic protocol fee rate changes
- **Token transfer data**: ERC-20 token transfer events from Ethereum, Arbitrum, Optimism, and Polygon networks
- **External data**: End-of-day token price feeds for USD conversion
- **External data**: Token metadata including decimal specifications for amount normalization

## 3. Step-by-step calculation

### Component A: Account classification and versioning
- **Purpose**: Classify hypervisor accounts as v1 or v2 protocol versions based on deployment timing
- **Logic**: Extract hypervisor addresses from `HypeAdded` events across different factory contracts. For v1 factories, classify accounts as v1 if created before specific block number thresholds (varies by chain), otherwise v2. V2-only factories (Zyberswap, QuickSwap) always classify accounts as v2. Block number thresholds mark protocol upgrade points on each chain
- **Key fields**: `account_address` for hypervisor identification, `chain` for network context, `account_version` for protocol version classification

### Component B: Token address identification
- **Purpose**: Determine the two tokens managed by each hypervisor for proper yield attribution
- **Logic**: Analyze `Deposit` events to identify token amounts (`amount0`, `amount1`) and match these with corresponding token transfer events in the same transaction. Join deposit events with token transfers where transfer amounts exactly match deposit amounts and transfers are directed to the hypervisor address. Extract distinct token addresses as `token_0_address` and `token_1_address` for each hypervisor
- **Key fields**: `token_0_address` and `token_1_address` for the token pair, `account_address` for hypervisor identification

### Component C: Protocol fee rate tracking
- **Purpose**: Track dynamic protocol fee rates for v2 hypervisors over time
- **Logic**: Extract fee rate changes from `ZeroBurn` events which emit new protocol fee rates. Calculate time intervals during which each fee rate is active by using the timestamp of each fee rate change as the start time and the next fee rate change (or end of time) as the end time. Filter to only include the first occurrence and actual changes in fee rates
- **Key fields**: `fee_rate` as the protocol fee percentage, `block_timestamp` and `lead_timestamp` for temporal validity ranges

### Component D: V1 yield calculation
- **Purpose**: Calculate protocol revenue from v1 hypervisor yields using fixed fee rate
- **Logic**: Extract yield amounts from `Rebalance` events (`feeAmount0`, `feeAmount1`) for accounts classified as v1. Join with token address mappings to properly attribute yields to specific tokens. Create separate records for each token type (token 0 and token 1). Apply fixed 10% protocol fee rate to total yield amounts. Aggregate by day using timestamp truncation
- **Key fields**: `amount` as yield amount per token, `token_address` for token identification, `account_address` for hypervisor identification

### Component E: V2 protocol yield calculation  
- **Purpose**: Capture actual protocol fee transfers for v2 hypervisors
- **Logic**: Identify token transfers to predefined fee wallet addresses (specific addresses per chain/DEX combination) from accounts classified as v2 hypervisors. These transfers represent the actual protocol fees collected. Join with dynamic fee rate data using temporal joins based on block timestamps to determine the active fee rate at the time of each transfer. The transfer amount represents the protocol fee amount already collected
- **Key fields**: `amount` as protocol fee amount, `protocol_fee_rate` for the active fee rate, `account_address` for hypervisor identification

### Component F: Revenue aggregation
- **Purpose**: Combine v1 and v2 revenue calculations into unified daily totals
- **Logic**: For v1 yields, multiply yield amounts by the fixed 10% protocol fee rate. For v2 yields, use the actual protocol fee amounts transferred to fee wallets. Union both datasets and aggregate by day, chain, account, and token. Apply decimal correction using token metadata and convert to USD using end-of-day price feeds. Group by timestamp, chain, and product dimensions
- **Key fields**: `revenue` as the final revenue amount in USD, `timestamp` for daily aggregation

### Component G: Expense calculation
- **Purpose**: Calculate total protocol expenses (set to zero for Gamma Strategies)
- **Logic**: Set token incentives to zero for all time periods and chains, as Gamma Strategies does not distribute token incentives. Use the same dimensional structure as revenue (timestamp, chain, product) to ensure proper alignment for earnings calculation
- **Key fields**: `token_incentives` set to 0, matching dimensional structure of revenue

### Final aggregation
- **Combining components**: Calculate earnings as revenue minus expenses using the `calculate_earnings` macro, which performs the subtraction operation across matching time periods and dimensional combinations
- **Currency conversion**: USD conversion occurs at the revenue level using end-of-day token prices with proper decimal correction applied before aggregation
- **Time aggregation**: Daily boundaries determined by timestamp truncation to day level, with all blockchain events aggregated within each 24-hour period  
- **Final calculation**: Earnings = Revenue - Expenses, where Revenue includes both v1 protocol fees (yield * 10%) and v2 actual protocol fee transfers, and Expenses = 0. Results include forward-filling for missing days and application of chain availability filters

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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