Liquidity providers deposit funds into IDEX and receive trading fees from traders (supply-side fees).

IDEX is hybrid-liquidity DEX, combining a high-performance order book with an Automated Market Making matching engine, built on Polygon. IDEX was founded by Alex Wearn and launched in 2019.

IDEX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). IDEX's investors include Gnosis, Collider Ventures, Borderless Capital, G1 Ventures, etc.

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IDEX

# IDEX Revenue Methodology

## 1. Overview

IDEX revenue represents the portion of trading fees retained by the protocol across its different trading venues. The metric calculates revenue by applying protocol-specific fee percentages to total trading fees generated from user trades. IDEX operates both AMM (Automated Market Maker) and order book trading venues, with different revenue sharing models for each business line.

## 2. Data sources

- **IDEX v3 trading events**: Parsed Polygon event logs from IDEX v3 Exchange contract including `PoolTradeExecuted` (AMM trades), `OrderBookTradeExecuted` (order book trades), and `HybridTradeExecuted` (mixed AMM/order book trades)
- **Quote asset configuration**: Hardcoded list of supported quote assets (USDC and ETH) with their contract addresses and symbols on Polygon
- **Protocol parameters**: Hardcoded fee tiers and protocol fee percentages with date-based logic

## 3. Step-by-step calculation

### Component A: Trade data extraction
- **Purpose**: Extract and standardize all IDEX trading activity from blockchain events
- **Logic**: Collect trade events from three IDEX v3 Polygon event types. Filter for taker trades only using the `takerSide` field equal to 1. Convert quantities from pips format to decimal by dividing by 10^8. Extract base and quote asset symbols, trade amounts, and business line classification from event parameters. For `HybridTradeExecuted` events, separate AMM and order book components into distinct records with appropriate business line labels.
- **Key fields**: `baseQuantityInPips` and `quoteQuantityInPips` (converted to `token0_amount` and `token1_amount`), `baseAssetSymbol` and `quoteAssetSymbol`, `takerSide` for filtering

### Component B: Quote asset filtering
- **Purpose**: Restrict revenue calculation to trades denominated in supported quote assets
- **Logic**: Join trade data with a dimension table containing only USDC and ETH as valid quote assets on Polygon. This filtering ensures revenue calculations only include trades with liquid, stable quote assets. Match trades using the `token1_symbol` field (quote asset symbol) against the supported quote asset list.
- **Key fields**: `token1_symbol` for joining, `token_symbol` and `token_address` from quote asset dimension

### Component C: Volume aggregation
- **Purpose**: Calculate daily trading volumes by business line
- **Logic**: Group filtered trades by day, chain, business line, and other classification dimensions. Sum the `token1_amount` field (quote asset amounts) to calculate total trading volume. This aggregation separates Exchange AMM and Exchange Order Book business lines, which have different fee structures.
- **Key fields**: `token1_amount` summed as `trading_volume`, grouped by `timestamp`, `business_line`, and classification dimensions

### Component D: Fee calculation
- **Purpose**: Calculate total trading fees using protocol fee tier
- **Logic**: Apply a uniform 0.25% fee tier to all trading volumes regardless of business line. Multiply daily trading volume by the fee percentage to determine total fees collected from traders. This represents the gross fee income before protocol revenue sharing.
- **Key fields**: `trading_volume` multiplied by 0.0025 to produce `fees`

### Final aggregation
- **Combining components**: Apply business line and date-specific protocol fee percentages to total fees
- **Revenue calculation**: For Exchange Order Book trades, retain 100% of fees as revenue. For Exchange AMM trades, apply time-based protocol fee percentages: 20% of fees for trades before February 4, 2023, and 10% of fees for trades after that date. This reflects changes in IDEX's revenue sharing model for AMM liquidity
- **Currency conversion**: Volumes are already denominated in quote assets (USDC/ETH), so no additional currency conversion is applied
- **Time aggregation**: Data is aggregated at daily granularity using day-truncated timestamps
- **Final calculation**: Revenue equals fees multiplied by the appropriate protocol fee percentage based on business line and date, representing the protocol's share of trading fees collected

*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.

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Revenue

Revenue

Competitive landscape

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