Grove borrows via Sky's Allocator Module and deploys capital into curated yield strategies through an ALM (Asset-Liability Management) controller architecture. The protocol generates yield across its positions while management fees are settled off-chain via a Monthly Settlement Cycle between Grove and Sky DAO.

Grove operates as a programmable capital allocator that draws stablecoins from Sky Protocol and deploys them into diversified institutional-grade yield-bearing positions spanning tokenized treasuries, private credit, DeFi lending markets, and curated vaults across multiple chains.

Grove is a DeFi protocol built on Sky (formerly MakerDAO) infrastructure, incubated by Grove Labs and managed by Steakhouse Financial as risk curator.

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Grove

# Gross profit Methodology

## Overview

Gross profit measures the value a project retains after paying external parties that perform a core part of its business. It is calculated as revenue minus cost of revenue, and is most relevant for L2/L3 blockchains that pay data availability fees to their main chain, and liquid staking protocols that pay node operators a share of staking reward revenue.

## Data sources

- On-chain transaction records capturing gas usage and settlement costs
- Smart contract events identifying revenue distributions and fee settlements
- End-of-day price feeds for USD conversion

## Common calculation approaches

### Layer 2 settlement and revenue sharing
For Layer 2 blockchains, gross profit is derived by subtracting network operating costs and ecosystem obligations from total user revenue. For example, revenue is aggregated from transaction fees on Base, while the cost of revenue is identified from Layer 1 data availability fees and `FeesDisbursed` events from `FeeDisburser` contracts.

### Service fee and infrastructure provider payout margins
Gross profit is calculated for infrastructure-based platforms by identifying the margin between fees paid by service users and the payouts claimed by resource providers. Across platforms including Aethir, service fees are captured from `DepositServiceFee` events, and provider costs are identified through `ClaimServiceFee` events from `AethirCore` contracts and on-chain token transfer records.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

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

Revenue remaining after subtracting cost of revenue.

GroveGROVE

Gross profit

Gross profit

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