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 Revenue Methodology

## 1. Overview

Katana revenue represents the portion of trading fees that accrue to Ronin as the protocol operator. The metric is calculated as one-sixth (16.67%) of the total fees collected from trading activity on the Katana decentralized exchange. This metric answers the business question of how much revenue Ronin generates from its DEX operations, providing insight into the protocol's fee-earning capacity from trading activity.

## 2. Data sources

The calculation relies on several key data sources from the Ronin blockchain and external systems:

- **Blockchain events**: Parsed Ronin `Swap` events from Katana v1 trading pairs containing token amounts exchanged in each trade
- **Trading pair data**: Ronin `PairCreated` events from the Katana v1 Factory contract that establish trading pairs and their fee structures
- **Transaction data**: Ronin transaction records providing user addresses and transaction metadata
- **Token metadata**: Token information including decimal places and symbols from both automated token registries and manually configured tokens (specifically the SLP token)
- **External data**: End-of-day token price feeds for USD conversion of trading volumes

## 3. Step-by-step calculation

### Component A: Trade extraction and processing
- **Purpose**: Extract individual swap transactions and calculate token amount changes
- **Logic**: Parse `Swap` events from Katana v1 trading pairs on Ronin blockchain. For each swap, calculate the net change in token amounts by subtracting outbound amounts from inbound amounts for both tokens in the pair. Extract transaction metadata including user addresses, block timestamps, and trading pair addresses. Filter to only include valid swap transactions with proper transaction hash linkage.
- **Key fields**: Transaction hash, log index, trading pair address, `amount0In`, `amount0Out`, `amount1In`, `amount1Out` for calculating net token changes, user address from transaction records

### Component B: Trading pair enrichment
- **Purpose**: Add trading pair metadata, token information, and fee tier data
- **Logic**: Join swap data with `PairCreated` events to identify token addresses for each trading pair and establish fee tiers. Enrich with token metadata including decimal places and symbols from both the standard token registry and manually configured tokens. Create trading pair names by combining token symbols. Apply a fixed fee tier of 0.3% (3000 basis points divided by 1,000,000) for all Katana v1 pairs.
- **Key fields**: Token addresses (`token0_address`, `token1_address`), token decimals for both tokens, trading pair name, fee tier (0.3%), token symbols

### Component C: Trading volume calculation and USD conversion
- **Purpose**: Calculate daily trading volumes in USD terms with manipulation protection
- **Logic**: Aggregate swap data by day, trading pair, and transaction. Correct token amounts using decimal places by dividing raw amounts by 10 raised to the token's decimal power. Convert both token amounts to USD using end-of-day price feeds matched by timestamp, token address, and chain. Apply manipulation protection by taking the lesser USD value between the two tokens in each swap, preventing inflated volumes from price discrepancies. Sum volumes across all transactions for each day.
- **Key fields**: Daily timestamp, corrected `token0_amount` and `token1_amount`, USD prices for both tokens, final `trading_volume` as the minimum USD value

### Component D: Fee calculation
- **Purpose**: Calculate total fees collected from trading activity
- **Logic**: Multiply daily trading volumes by the fee tier percentage to determine total fees collected. Use the fixed 0.3% fee tier applied to all trading volume on Katana v1 pairs. Aggregate fees across all trading pairs and days.
- **Key fields**: Daily trading volume in USD, fee tier (0.3%), calculated `fees` as the product

### Final aggregation
- **Combining components**: Sum all calculated fees across trading pairs for each day to get total daily fee collection
- **Currency conversion**: All amounts are already converted to USD using end-of-day price feeds during the volume calculation stage
- **Time aggregation**: Data is aggregated to daily boundaries using day-truncated timestamps from the original swap events
- **Final calculation**: Apply the protocol fee share of one-sixth (16.67%) to total daily fees to calculate Ronin's revenue portion. This represents the share of fees that accrue to the protocol rather than to liquidity providers.

*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.

Katana (Ronin)

Revenue

Revenue

Competitive landscape