# Gearbox V3 Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that Gearbox V3 retains, representing the protocol's share of treasury income. This income is derived from interest rate markups on active credit accounts and protocol liquidation fees. The retained revenue is split between the protocol treasury and market curators depending on the pool version and configuration. This metric is used to assess the direct earnings of the protocol before operating expenses and incentives are deducted.

## 2. Data sources

- **Blockchain events**: `Repay` events from `PoolV3` contracts, and `LiquidateCreditAccount` and `PartiallyLiquidateCreditAccount` events from `CreditFacadeV3` contracts, alongside state reads of pool rates, borrows, credit manager configurations, and liquidation debt, covering Ethereum, Monad, and Plasma
- **External data**: End-of-day price feeds for assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Interest markup accrual

- **Purpose**: Calculate the daily accrued interest markup and quota fees for Gearbox V3 credit managers.
- **Logic**: Daily interest rate markups are calculated at the credit manager level using snapshots of borrowed amounts and base interest indices. The interest markup is determined by multiplying the credit manager's borrowed balance by the daily change in the base interest index and the credit manager's interest fee rate. Quota markups are calculated by allocating a portion of the annualized quota revenue to the credit manager based on its share of total pool borrows, adjusted by the interest fee rate. For chains with pruned historical state where daily reads are unavailable, the markup is estimated from the profit reported in repayment events.
- **Key fields**: `credit_manager_borrowed`, `base_interest_index`, `fee_interest_bps`, `quota_revenue`, `total_borrowed`

### Component B: Liquidation fee extraction

- **Purpose**: Calculate protocol liquidation fees from credit account liquidations.
- **Logic**: Protocol liquidation fees are extracted from full and partial liquidation events. For full liquidations, the protocol fee is calculated as the excess profit received by the pool treasury beyond the accrued interest fees, determined by subtracting accrued fees from the repayment profit. For partial liquidations, the protocol fee is extracted directly from the fee field of the liquidation event. If historical debt reads are unavailable, liquidation fees are omitted from the interest estimate.
- **Key fields**: `profit`, `accrued_fees`, `fee`, `repaid_debt`

### Component C: Protocol revenue share allocation

- **Purpose**: Apply the protocol's take rate to the accrued treasury income.
- **Logic**: Treasury income, consisting of interest markups and liquidation fees, is split between the protocol and market curators based on pool-specific treasury share configurations. For V3.0 pools, 100% of the treasury income is allocated to the protocol, except for designated curator-owned pools which allocate 0% to the protocol. For V3.1 pools, the protocol's share is determined by the on-chain splitter contract's DAO share configuration, defaulting to 50% if no split is recorded.
- **Key fields**: `protocol_share`, `dao_share`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize revenue values to USD and aggregate them.
- **Logic**: The protocol's share of accrued interest markups and liquidation fees is aggregated daily by asset and chain. Asset amounts are normalized by their decimal precision and converted to USD using end-of-day asset prices. Daily values are aggregated with UTC day boundaries, and any missing days are zero-filled.
- **Key fields**: `revenue`, `price_usd`

*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 V3

Revenue

Revenue

Chain breakdown