Liquidity providers deposit funds into IPOR Protocol and receive trading fees and asset management yield (supply-side fees).

IPOR Protocol is a non-custodial exchange for interest rate swaps built on Ethereum. IPOR Protocol was founded by Darren Camas & Dimitar Dinev, and was launched in August 2022.

IPOR tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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IPOR Protocol

# IPOR Protocol Earnings Methodology

## 1. Overview

The IPOR earnings metric measures the net profit generated by the IPOR protocol from interest rate swap trading activities. It is calculated as revenue minus expenses, where revenue comes from fees collected when traders open, close, or unwind interest rate swap positions, and expenses consist of IPOR token incentives distributed to users. This metric answers the fundamental business question of how profitable the IPOR protocol's core derivatives trading business is after accounting for user incentives.

## 2. Data sources

The calculation utilizes several types of blockchain data and external feeds:

- **Protocol interaction events**: Parsed Ethereum blockchain events from IPOR v1 and v2 contracts, including `CloseSwap`, `OpenSwap`, and `SwapUnwind` events that contain fee information collected from traders
- **Token incentive events**: Parsed Ethereum blockchain events tracking IPOR token distributions, including `PowerToken_RewardsReceived` events and `LiquidityMining_Claimed` events
- **Token metadata**: Token contract information including symbols, decimals, and contract addresses for proper data formatting and identification
- **End-of-day price feeds**: Daily token price data used for USD conversion of all amounts
- **Chain availability data**: Blockchain operational status information to filter out periods when chains were not fully operational

## 3. Step-by-step calculation

### Component A: Revenue from protocol fees

- **Purpose**: Captures all fees collected by the IPOR protocol when users interact with interest rate swap contracts
- **Logic**: Revenue is extracted from multiple types of events across two protocol versions. For IPOR v1, `CloseSwap` events provide the `incomeFeeValue` field representing fees collected when positions are closed. `OpenSwap` events from v1 provide two fee components: `openingFeeTreasuryAmount` (protocol treasury fees) and `iporPublicationFee` (oracle publication fees) that are summed together. For IPOR v2, `OpenSwap` events similarly provide `openingFeeTreasuryAmount` and `iporPublicationFee` fields that are combined. `SwapUnwind` events from v2 provide `unwindFeeTreasuryAmount` representing fees for early position unwinding. All amounts are divided by 10^18 to convert from wei to standard token units. The events are joined with token metadata to obtain token symbols and then aggregated daily by taking absolute values to ensure positive revenue amounts
- **Key fields**: The `incomeFeeValue`, `openingFeeTreasuryAmount`, `iporPublicationFee`, and `unwindFeeTreasuryAmount` fields contain the raw fee amounts, while `asset` fields identify the token address for each fee payment

### Component B: Expenses from token incentives  

- **Purpose**: Tracks all IPOR token distributions as protocol expenses for user acquisition and retention
- **Logic**: Token incentive data is collected from two event types representing different reward mechanisms. `PowerToken_RewardsReceived` events track rewards distributed through the v1 power token system, while `LiquidityMining_Claimed` events track rewards from the v2 liquidity mining program. Both event types provide amount fields representing IPOR tokens distributed to users. The token address is hardcoded as the IPOR token contract address. These amounts are aggregated daily and treated as protocol expenses since they represent value distributed to users to incentivize participation
- **Key fields**: The `rewardsAmount` field from reward events and the implicit amount field from claimed events provide the token quantities distributed to users

### Final aggregation

- **Combining components**: Revenue and expenses are calculated separately as daily totals, then combined using the standard earnings formula where daily earnings equals daily revenue minus daily expenses
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds matched by token address and date. The conversion happens after decimal normalization but before the final earnings calculation
- **Time aggregation**: All events are aggregated to daily boundaries using timestamp truncation to the day level, ensuring consistent time-based grouping across revenue and expense components  
- **Final calculation**: The final earnings value is computed by subtracting the daily USD value of token incentives distributed from the daily USD value of protocol fees collected, with zero-filling applied for dates with no activity to maintain continuous time series

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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