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).

github

twitter

discord

website

Exchanges (DEX)

Katana (Ronin)

# Katana Supply-side fees Methodology

## 1. Overview

The Katana supply-side fees metric measures the portion of trading fees that accrue to liquidity providers on the Katana decentralized exchange. This metric answers the business question: "How much fee revenue do liquidity providers earn from trading activity?" The calculation applies a fixed 5/6 (83.33%) allocation of total trading fees to represent the supply-side portion, with the remaining 1/6 going to the protocol.

## 2. Data sources

The metric relies on several raw data sources from the Ronin blockchain and external systems:
- **Blockchain events**: Parsed `Swap` events from Katana v1 pair contracts on Ronin, containing token amounts and trade details
- **Factory events**: `PairCreated` events from Katana v1 factory contracts providing trading pair configurations and fee tier information
- **Transaction data**: Ronin transaction records providing user addresses and transaction context
- **External data**: End-of-day token price feeds for USD conversion and token metadata registry for decimal normalization
- **Manual configuration**: Hardcoded token metadata for non-standard tokens not available in the standard registry

## 3. Step-by-step calculation

### Component A: Raw trade extraction
- **Purpose**: Extract and process individual swap transactions from Katana DEX
- **Logic**: Query `Swap` events from Katana v1 pair contracts on Ronin blockchain. Calculate net token movements by subtracting `amount_out` from `amount_in` for both `token0` and `token1` in each swap. Join with Ronin transaction data to obtain user addresses and transaction context. Filter for valid swaps and apply incremental processing for efficiency.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` representing token flows, `transaction_hash` for unique identification, `user_address` from transaction data

### Component B: Trading pair configuration
- **Purpose**: Establish trading pair metadata including fee tiers and token information
- **Logic**: Extract `PairCreated` events from Katana v1 factory contracts to identify all trading pairs. Each pair has a fixed fee tier of 0.3% (3000/1000000). Join with token metadata registry to obtain token decimals and symbols for both tokens in each pair. Apply manual token overrides for non-standard tokens like SLP that aren't in the main registry.
- **Key fields**: `token0_address`, `token1_address` for pair identification, `fee_tier` set at 0.3%, `token0_decimals` and `token1_decimals` for normalization

### Component C: Trading volume calculation
- **Purpose**: Convert raw token amounts to normalized USD trading volumes
- **Logic**: Join swap events with trading pair configurations to obtain fee tiers and token metadata. Normalize token amounts by dividing by 10 raised to the power of token decimals. Convert both normalized token amounts to USD using end-of-day price feeds. Apply anti-manipulation logic by taking the lesser of the two USD values for each trade to prevent inflated volumes from price discrepancies. Aggregate trading volumes daily by trading pair and fee tier.
- **Key fields**: `token0_amount` and `token1_amount` after decimal correction, `price_usd` from price feeds, `trading_volume` as the minimum USD value

### Component D: Fee calculation
- **Purpose**: Calculate total trading fees generated from trading activity
- **Logic**: Multiply aggregated daily trading volumes by the corresponding fee tier percentage (0.3% for all Katana pairs). Sum fees across all trading pairs to get total daily fees for the protocol.
- **Key fields**: `trading_volume` multiplied by `fee_tier` to generate `fees`

### Final aggregation
- **Combining components**: Total fees serve as the base for supply-side fee calculation
- **Currency conversion**: All amounts are already converted to USD using end-of-day price feeds during trading volume calculation
- **Time aggregation**: Data is aggregated on daily boundaries using timestamp truncation to day level
- **Final calculation**: Apply the fixed supply-side allocation by multiplying total fees by 5/6 (approximately 0.8333), representing the portion of fees that accrue to liquidity providers rather than the protocol

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

Portion of fees distributed to service providers or supply-side participants.

Katana (Ronin)

Supply-side fees

Supply-side fees

Competitive landscape