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

Katana is a non-custodial exchange protocol built on Ronin. Katana was founded by Sky Mavis and launched in 2021.

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

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Exchanges (DEX)

Katana (Ronin)

# Katana Fees Methodology

## 1. Overview

Katana fees represent the total fees collected by the Katana decentralized exchange (DEX) on the Ronin blockchain. The metric calculates fees by multiplying trading volume in USD by the applicable fee tier for each trading pair. This answers the business question of how much revenue Katana generates from trading activity. The calculation uses a straightforward approach: fees = trading volume × fee tier percentage.

## 2. Data sources

The calculation relies on several key raw data sources:

- **Blockchain events**: Parsed Ronin `Pair_Swap_event` logs from Katana DEX contracts containing trade execution data, and `Factory_PairCreated_event` logs containing trading pair creation and fee tier information
- **Transaction data**: Ronin transaction records providing user addresses and transaction context for each swap
- **External data**: End-of-day token price feeds for USD conversion, standard token metadata including decimals and symbols, and a manual token registry for tokens not in the standard metadata (such as Smooth Love Potion)
- **Data types**: Daily aggregated trading volumes, fee tier configurations per trading pair, and token-specific decimal precision data

## 3. Step-by-step calculation

### Component A: Raw trade extraction
- **Purpose**: Extract and process raw swap events from Katana DEX
- **Logic**: Parse `Pair_Swap_event` logs from Katana smart contracts on Ronin blockchain. Calculate net token amount changes for each trade by subtracting `amount0Out` from `amount0In` for token0, and `amount1Out` from `amount1In` for token1. Join with transaction records to obtain user addresses. Filter data incrementally based on block timestamps to ensure efficient processing.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `address` for the trading pair contract, net `token0_amount` and `token1_amount` representing the token quantity changes

### Component B: Trading pair metadata enrichment
- **Purpose**: Enrich trade data with trading pair information and fee tiers
- **Logic**: Extract trading pair configurations from `Factory_PairCreated_event` logs, which contain the pair contract address, token0 and token1 addresses, and fee tier information. Fee tiers are stored as integers (e.g., 3000) representing basis points, converted to decimal percentages by dividing by 1,000,000 (3000/1,000,000 = 0.003 = 0.3%). Join with both standard token metadata and manual token registry to obtain decimal precision and symbol information for proper amount calculations and display names.
- **Key fields**: `account_address` for the pair contract, `token0_address` and `token1_address` for the traded tokens, `fee_tier` as decimal percentage, `token0_decimals` and `token1_decimals` for amount normalization

### Component C: Trading volume calculation
- **Purpose**: Calculate USD trading volumes with anti-manipulation protection
- **Logic**: Aggregate trades on a daily basis, correcting token amounts for decimal precision by dividing raw amounts by 10 raised to the power of token decimals. Convert corrected token amounts to USD values using end-of-day price feeds matched by date, token address, and chain. Apply anti-manipulation logic by taking the minimum USD value between token0 and token1 amounts for each trade, preventing inflated volumes from price manipulation. Default to zero if price data is unavailable for either token.
- **Key fields**: Daily `timestamp`, `trading_volume` in USD representing the lesser of token0 or token1 USD values, `fee_tier` for fee calculation

### Final aggregation
- **Combining components**: Sum trading volumes by day, timestamp grain, chain, market sector, business segment, product, and fee tier to create aggregated trading volume data
- **Currency conversion**: USD conversion occurs at the individual trade level using end-of-day token prices, ensuring consistent valuation across all trades
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with each day representing a complete 24-hour period
- **Final calculation**: Multiply the aggregated USD trading volume by the fee tier percentage to calculate total fees collected (fees = trading_volume × fee_tier). Apply standard metric finalization with zero-filling for missing data points and chain availability filtering to ensure consistent time series data

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Katana (Ronin)

Fees

Fees

Competitive landscape