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.

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Hydration

# Hydration Revenue Methodology

## 1. Overview

Revenue measures the portion of fees collected within the Hydration ecosystem that is retained by the protocol treasury. This metric includes the total value of transaction fees from Hydration Substrate, specific fee distributions from Hydration DEX, and the protocol's share of interest and liquidation penalties from Hydration Lending and HOLLAR. These earnings represent the protocol's take rate before the deduction of operating expenses or token incentives.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from Hydration Substrate; `Swapped`, `Swapped2`, and `Swapped3` events from Hydration DEX; `MintedToTreasury` and `LiquidationCall` events from `LendingPool` contracts; `LiquidationProtocolFeeChanged`, `ReserveFactorChanged`, and `ReserveInitialized` events from `LendingPoolConfigurator` contracts; and `Mint` and `Burn` events from `VToken` contracts, covering Hydration Substrate and Hydration EVM.
- **External data**: End-of-day price feeds for various ecosystem assets and native gas assets.

## 3. Step-by-step calculation

### Component A: Hydration Substrate transaction fee collection

- **Purpose**: Capture revenue generated from native chain transaction processing.
- **Logic**: `TransactionFeePaid` events are parsed from the Hydration Substrate chain to extract base fee and tip amounts. The total fee is calculated as the sum of the fee amount and the tip. All collected transaction fees on the Substrate chain are classified as protocol revenue. Amounts are normalized by decimal precision and converted to USD using end-of-day price feeds for the native asset.

### Component B: Hydration DEX fee extraction

- **Purpose**: Identify the protocol's share of trading fees from the decentralized exchange.
- **Logic**: `Swapped`, `Swapped2`, and `Swapped3` events from the `broadcast` pallet are analyzed to identify fee assets and amounts. Fees are categorized as revenue only when they are directed to specific protocol treasury addresses. Asset amounts are normalized by decimal precision and multiplied by end-of-day prices to determine the USD value of the protocol's take from trading activities.

### Component C: Hydration Lending revenue calculation

- **Purpose**: Determine the protocol's retained earnings from interest and liquidations.
- **Logic**: Interest revenue is tracked by aggregating `MintedToTreasury` events from `LendingPool` contracts and state-level treasury accrual data. The daily revenue is identified as the change in the cumulative interest balance. Liquidation revenue is captured by identifying collateral asset transfers to the treasury address from users, triggered by `LiquidationCall` events. These calculations are adjusted by `reserve_factor` and `liquidation_factor` parameters extracted from `LendingPoolConfigurator` contracts.

### Component D: HOLLAR stability module and interest accruals

- **Purpose**: Calculate earnings from the HOLLAR stablecoin product.
- **Logic**: Revenue is derived from stability module fees and debt interest. `Mint` and `Burn` events from `VToken` contracts are joined with `ReserveDataUpdated` events from `LendingPool` contracts to calculate interest based on cumulative balances and changes in the variable borrow index. For the stability module, transfers to the module address are tracked, with 80% of the net flow allocated to protocol revenue.

### Component E: Final aggregation and normalization

- **Purpose**: Consolidate revenue from all product components into a daily metric.
- **Logic**: Revenue values from the substrate chain, DEX, lending platform, and HOLLAR product are summed by day. Amounts are normalized by the decimal precision of each respective asset and converted to USD using end-of-day price feeds. A zero-fill strategy is applied to ensure continuity across the time series. Daily granularity is maintained using UTC day boundaries.

*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.

HydrationHDX

Revenue

Revenue

Competitive landscape

Chain breakdown