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 Fees Methodology

## 1. Overview

The IPOR fees metric represents the total daily fees collected by the IPOR Protocol across all fee types. IPOR is a decentralized interest rate derivatives protocol that allows users to trade interest rate swaps and provides liquidity pools for various assets. The metric combines two main fee categories: revenue fees (collected by the protocol treasury) and supply-side fees (distributed to liquidity providers). This comprehensive metric answers the business question of total fee generation across IPOR's interest rate swap trading and asset management operations.

The calculation aggregates fees from both IPOR v1 and v2 protocol versions, covering interest rate swap trading activities and yields generated from IPOR's asset management strategy where protocol funds are deployed to external yield-generating protocols like Aave and Compound.

## 2. Data sources

The calculation relies on several categories of raw blockchain data:

- **Smart contract events**: Parsed Ethereum smart contract events from IPOR v1 and v2 protocol contracts, including Stanley contracts for asset management operations, Joseph contracts for redemption activities, Milton contracts for interest rate swap operations, and IporProtocolRouter contracts for v2 trading activities
- **Transaction data**: Event logs capturing swap opening, closing, unwinding, redemption, deposit, and withdrawal operations across USDC, USDT, DAI, and stETH markets
- **Token metadata**: Token information including symbols, decimals, and chain associations for the supported assets
- **External data**: End-of-day token price feeds for USD conversion of fee amounts across different tokens

## 3. Step-by-step calculation

### Component A: Revenue fees from interest rate swap trading
- **Purpose**: Calculate fees collected by the IPOR Protocol treasury from interest rate swap trading activities
- **Logic**: Extract fee amounts from swap trading events across both protocol versions. For IPOR v1, capture income fees from `CloseSwap` events using the `incomeFeeValue` field, and opening fees from `OpenSwap` events by summing `openingFeeTreasuryAmount` and `iporPublicationFee` fields. For IPOR v2, extract similar fee components from `OpenSwap` events (treasury amount plus publication fee) and unwind fees from `SwapUnwind` events using the `unwindFeeTreasuryAmount` field. Convert all amounts from wei to standard decimal format by dividing by 10^18.
- **Key fields**: Event timestamp, transaction details, asset token address, `incomeFeeValue`, `openingFeeTreasuryAmount`, `iporPublicationFee`, `unwindFeeTreasuryAmount`

### Component B: Supply-side fees from interest rate swap trading  
- **Purpose**: Calculate fees distributed to liquidity providers from swap trading activities
- **Logic**: Extract liquidity provider fee amounts from the same trading events but using different fee parameters. For IPOR v1, capture redemption fees from `Redeem` events using `redeemFee` field and opening fees for liquidity providers from `OpenSwap` events using `openingFeeLPAmount` field. For IPOR v2, extract LP fees from `OpenSwap` and `SwapUnwind` events using `openingFeeLPAmount` and `unwindFeeLPAmount` fields respectively. Also include redemption fees from `Redeem` events and special stETH redemption fee calculations from `RedeemStEth` events. Convert all amounts from wei to standard decimals.
- **Key fields**: Event timestamp, transaction details, asset token address, `redeemFee`, `openingFeeLPAmount`, `unwindFeeLPAmount`, redemption amounts for stETH

### Component C: Asset management yields
- **Purpose**: Calculate yield generated from IPOR's strategy of depositing user funds into external protocols like Aave and Compound
- **Logic**: Track exchange rate changes in Stanley contract `Deposit` and `Withdraw` events to estimate yield generation. Calculate the ongoing balance of funds deployed to external protocols by maintaining a running sum of deposit and withdrawal amounts. Use the difference between current and previous exchange rates multiplied by the ongoing deposit amount to estimate yield generated. Filter exchange rates to reasonable bounds (between 1.5e17 and 1.5e18) to exclude erroneous data. Only include positive yield calculations where exchange rates have increased.
- **Key fields**: Event timestamp, `exchangeRate`, deposit/withdrawal `amount`, calculated ongoing balance and yield differential

### Component D: Daily aggregation and standardization
- **Purpose**: Aggregate all fee components to daily totals and standardize across tokens and chains
- **Logic**: Truncate all event timestamps to day boundaries for daily aggregation. Group fee amounts by day, chain, token address, and business line categories. Join with token metadata to map token addresses to symbols and obtain token information. Sum all fee amounts within each daily group. Classify business activities into appropriate categories - interest rate swaps are categorized under derivatives market sector with perpetual business segment, while asset management yields are categorized under asset management market sector with yield aggregator business segment.
- **Key fields**: Daily timestamp, chain identifier, token symbol, aggregated fee amounts, business classifications

### Final aggregation
- **Combining components**: Union the revenue fees and supply-side fees datasets together, then sum all fee amounts grouped by daily timestamp, chain, and protocol dimensions to create total fee amounts
- **Currency conversion**: Convert all token amounts to USD using end-of-day price feeds through the standardized conversion process that handles decimal corrections and applies historical exchange rates
- **Time aggregation**: Maintain daily granularity with timestamp grain set to 'day', ensuring consistent time boundaries across all fee types
- **Final calculation**: The final metric value represents the sum of all protocol revenue fees and supply-side fees in USD terms, aggregated daily across all supported tokens (USDC, USDT, DAI, stETH) and both IPOR protocol versions, with zero-filling applied for days with no fee activity and chain availability filtering applied

*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

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