# Hydration DEX Revenue Methodology

## 1. Overview

Revenue measures the portion of trading fees generated by Hydration DEX that is retained by the protocol. On Hydration DEX, this represents the value directed to specific protocol-controlled treasury addresses from swap activities. This metric is used to evaluate the protocol's ability to capture value from its decentralized exchange services before the distribution of incentives or operating expenses.

## 2. Data sources

- **Blockchain events**: `Swapped`, `Swapped2`, and `Swapped3` events from `broadcast` pallets, covering Hydration Substrate
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Swap event parsing (Hydration DEX)
- **Purpose**: To extract raw fee data from decentralized exchange trades.
- **Logic**: `Swapped`, `Swapped2`, and `Swapped3` events are parsed from the `broadcast` pallet on Hydration Substrate. For each swap, the assets involved in the trade and the associated fee array are extracted. Fee amounts and their corresponding asset identifiers are retrieved from the first and second positions of the fee data structures.
- **Key fields**: `fees_asset_1`, `fees_assets_amount_1`, `fees_asset_2`, and `fees_assets_amount_2`.

### Component B: Revenue identification and filtering

- **Purpose**: To isolate the portion of fees retained by the protocol treasury from total fees.
- **Logic**: Fee records are filtered based on the destination account address. Only fees directed to the canonical protocol treasury addresses (`7L53bUTBopuwFt3mKUfmkzgGLayYa1Yvn1hAg9v5UMrQzTfh` or `13UVJyLnbVp9RBZYFwFGyDvVd1y27Tt8tkntv6Q7JVPhFsTB`) are classified as protocol revenue. Fees directed to other participants, such as liquidity providers, are excluded from this metric.
- **Key fields**: `fees_destination_account`.

### Component C: Normalization and USD conversion

- **Purpose**: To convert native fee amounts into a standardized USD value.
- **Logic**: Raw fee amounts are normalized by the decimal precision of each respective asset. These normalized values are multiplied by end-of-day price feeds. Results are aggregated by day using UTC boundaries to produce the final revenue metric for Hydration DEX.
- **Key fields**: `fees_amount`, `decimals`, and `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

Exchanges (DEX)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Hydration is a Polkadot parachain specialized in trading, lending, and stablecoin issuance.

HDX holders own and govern the protocol. Hydration’s investors include KR1 plc, Hypersphere, etc.

Hydration DEX

Revenue

Revenue

Chain breakdown