Hop allows users to send tokens from one rollup to another almost immediately without having to wait for the rollup’s challenge period. Liquidity providers deposit funds into Hop AMM pools and receive trading fees from traders (supply-side fees).

Hop is a scalable rollup-to-rollup general token bridge. Hop was co-founded by Christopher Whinfrey and launched in 2021.

HOP tokenholders own and govern the protocol. They currently take a cut of the total transfer fees paid by users (revenue). Hop’s investors include 1confirmation, Infinite Capital, etc.

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Hop Protocol

# Hop Protocol Fees Methodology

## 1. Overview

Hop protocol fees represents the total fee revenue generated by the Hop bridge protocol across all supported chains and tokens. The metric combines two distinct fee streams: bonder fees collected during bridge transfers and liquidity provider (LP) fees earned from automated market maker (AMM) swaps. This metric answers the business question "How much total fee revenue does Hop protocol generate daily?" by aggregating fees from both bridge operations and trading activities, converted to USD for cross-chain and cross-token comparability.

## 2. Data sources

The calculation relies on several key data sources:

- **Bridge contract events**: Parsed `TransferSentToL2` events from Ethereum L1 bridge contracts and `TransferSent` events from L2 bridge contracts on Polygon, Arbitrum, Optimism, and Base
- **AMM contract events**: Parsed `TokenSwap` events from Hop's L2 automated market maker contracts across Polygon, Arbitrum, Optimism, and Base  
- **End-of-day price feeds**: Token price data for USD conversion across all supported tokens (USDC, DAI, ETH, MATIC, USDT, WBTC, HOP, MAGIC, RETH, SNX, SUSD)
- **Token metadata**: Decimal precision information for proper amount normalization
- **Chain mapping data**: Chain ID to chain name mappings for multi-chain aggregation

## 3. Step-by-step calculation

### Component A: Bridge transfer bonder fees
- **Purpose**: Captures fees paid to bonders who facilitate cross-chain bridge transfers
- **Logic**: Extracts bonder fee amounts directly from bridge transfer events. For L1 transfers (Ethereum `TransferSentToL2` events), bonder fees are zero since L1 transfers don't require bonder facilitation. For L2 transfers (`TransferSent` events from Polygon, Arbitrum, Optimism, and Base), the `bonderFee` field contains the fee amount paid to bonders who provide liquidity and validate cross-chain transfers. Each transfer event includes the account address initiating the transfer, the token being bridged, the transfer amount, and the associated bonder fee amount.
- **Key fields**: `bonderFee` amounts from L2 events, `account_address` for fee attribution, `token_address` and `token_symbol` for token identification, `block_timestamp` for daily aggregation

### Component B: AMM liquidity provider fees  
- **Purpose**: Calculates fees earned by liquidity providers from token swaps on Hop's AMM pools
- **Logic**: Processes `TokenSwap` events from L2 AMM contracts to calculate LP fees. Each swap event contains the `tokensSold` amount representing the trading volume. LP fees are calculated by multiplying this trading amount by a fixed fee percentage of 0.04% (0.0004). This fee structure rewards liquidity providers for enabling efficient token swaps within Hop's bridge ecosystem. The calculation covers AMM pools for all supported tokens across Polygon, Arbitrum, Optimism, and Base networks.
- **Key fields**: `tokensSold` trading amounts from swap events, fixed `lp_fee_percentage` of 0.0004, `account_address` for transaction attribution, token identification fields

### Final aggregation
- **Combining components**: Both fee streams are combined using a union operation, with bonder fees taken directly from bridge events and LP fees calculated as the product of trading amounts and the LP fee percentage
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token price feeds, with proper decimal correction applied based on each token's precision (e.g., USDC has 6 decimals, ETH has 18 decimals)
- **Time aggregation**: All timestamps are truncated to daily boundaries, enabling consistent daily fee revenue reporting across all chains and tokens
- **Final calculation**: The methodology sums all USD-converted fees (both bonder fees and LP fees) by day, chain, and token, then aggregates across all tokens and chains to produce total daily Hop protocol fee revenue. A zero-fill strategy ensures complete time series data even for days with no activity.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

Fees

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