# Gearbox V1 Revenue Methodology

## 1. Overview

The portion of fees retained by the project treasury is measured as Revenue. For Gearbox V1, protocol revenue is derived from realized treasury receipts, which are comprised of diesel assets minted to the treasury upon credit account repayments and withdrawal fees collected by V1 pools. Transactions from both Gearbox V1 and Gearbox V2 credit accounts are incorporated into this metric, as operations from Gearbox V2 credit accounts are executed directly against Gearbox V1 pools. All collected revenue is normalized by decimal precision and converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `RepayCreditAccount`, `LiquidateCreditAccount`, and `CloseCreditAccount` events from `CreditManager` contracts, `RemoveLiquidity` events from `Pool` contracts, and `CloseCreditAccount` and `LiquidateCreditAccount` events from `CreditFacade` contracts, alongside ERC-20 `Transfer` events, covering Ethereum
- **External data**: End-of-day price feeds for underlying assets and asset metadata

## 3. Step-by-step calculation

### Component A: Revenue transaction filtering

- **Purpose**: To identify transactions associated with Gearbox V1 revenue collection.
- **Logic**: Transaction hashes are filtered using an allowlist of revenue-generating events. These events are comprised of `RepayCreditAccount`, `LiquidateCreditAccount`, and `CloseCreditAccount` events from `CreditManager` contracts, `RemoveLiquidity` events from `Pool` contracts, and `CloseCreditAccount` and `LiquidateCreditAccount` events from `CreditFacade` contracts. Additionally, transaction hashes are extracted from ERC-20 `Transfer` events where diesel assets are minted to the protocol treasury from the null address.
- **Key fields**: `transaction_hash` (transaction identification), `block_timestamp` (timing)

### Component B: Treasury transfer extraction

- **Purpose**: To extract and filter asset transfers representing protocol revenue.
- **Logic**: ERC-20 `Transfer` events directed to the protocol treasury address are parsed. Transfers of Gearbox V3 pool assets are excluded from the dataset. Treasury liquidity withdrawals are identified via `RemoveLiquidity` events and filtered out to prevent self-transfers from being counted. Only transfers originating from the null address (representing diesel asset mints) or directly from Gearbox V1 pools (representing withdrawal fees) are retained.
- **Key fields**: `token_address` (asset identification), `from_address` (sender identification), `amount` (transfer quantities)

### Component C: Asset valuation and decimal normalization

- **Purpose**: To map diesel assets to their underlying assets and normalize asset quantities.
- **Logic**: Minted diesel assets are mapped 1:1 to their corresponding underlying pool assets using pool denomination metadata. Raw transfer amounts are then normalized by dividing by the decimal precision of the underlying asset.
- **Key fields**: `token_address` (asset identification), `amount` (normalized asset quantities)

### Component D: USD conversion and aggregation

- **Purpose**: To convert normalized revenue values to USD and aggregate them daily.
- **Logic**: Normalized revenue amounts are multiplied by end-of-day asset prices. The resulting USD values are aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `revenue` (USD-denominated revenue), `timestamp` (daily timing)

*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.

Revenue

Lending

Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

Gearbox V1

Revenue

Revenue

Chain breakdown