Kwenta builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Kwenta trade futures against the liquidity provided by liquidity providers on Synthetix.

Kwenta is a non-custodial exchange for perpetual contracts built on Optimism. Kwenta was born out of the Synthetix community and launched in 2022.

KWENTA tokenholders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

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Kwenta

# Kwenta Fees Methodology

## 1. Overview

Kwenta fees measures the total trading fees generated by users trading perpetual futures through Kwenta's interface on the Synthetix protocol. This metric captures fees charged on position modifications (opens, closes, and adjustments) for perpetual futures contracts. The calculation identifies Kwenta-specific trades using tracking codes, extracts fee amounts from blockchain events, and converts them to USD for standardized reporting.

## 2. Data sources

The calculation relies on several types of blockchain data and external sources:

- **Synthetix protocol events**: Parsed `PositionModified` events from Synthetix v1 and v2 perpetual futures contracts on Optimism, containing fee amounts charged for position changes
- **Tracking events**: Parsed `FuturesTracking` and `PerpsTracking` events from Synthetix contracts, used to identify trades routed through Kwenta's interface via tracking codes
- **Market creation events**: Parsed `MarketAdded` events from Synthetix `FuturesMarketManager` contracts, providing mappings between market addresses and underlying synthetic assets
- **Token metadata**: sUSD token contract information and decimal precision data
- **External price data**: End-of-day price feeds for sUSD to USD conversion

## 3. Step-by-step calculation

### Component A: Transaction whitelisting
- **Purpose**: Identifies blockchain transactions that originated from Kwenta's trading interface
- **Logic**: Extracts transaction hashes from Synthetix `FuturesTracking` and `PerpsTracking` events across v1 and v2 contracts on Optimism. Filters these events using Kwenta's specific tracking code (`0x4b57454e54410000000000000000000000000000000000000000000000000000`) to isolate trades routed through Kwenta's platform. Creates a whitelist of transaction hashes with version information (v1 or v2) for downstream filtering.
- **Key fields**: `transaction_hash` for linking to fee events, `version` for contract version tracking

### Component B: Fee extraction
- **Purpose**: Extracts actual fee amounts charged on perpetual trading positions
- **Logic**: Retrieves `PositionModified` events from multiple Synthetix contract versions (FuturesMarket, ProxyPerpsV2, ProxyPerpsV21, ProxyPerpsV22) on Optimism. Joins these events with the transaction whitelist to ensure only Kwenta-originated trades are included. Extracts the `fee` field from position modification events, along with account addresses, timestamps, and transaction metadata. All fees are denominated in sUSD tokens.
- **Key fields**: `fees` containing the sUSD amount charged, `account_address` for the trading account, `block_timestamp` for timing, `token_address` set to sUSD contract address

### Component C: Market context enrichment
- **Purpose**: Adds market and asset information to fee records for categorization
- **Logic**: Joins fee data with market dimension data derived from `MarketAdded` events from Synthetix `FuturesMarketManager` contracts. These events map market contract addresses to their underlying synthetic assets (like OP, GBP, ETH, BTC). The market mapping decodes hex-encoded asset identifiers into readable synthetic asset names, with special handling for OP and GBP markets using hardcoded addresses. Adds business categorization fields marking all fees as derivatives/perpetual trading.
- **Key fields**: `market_sector_id` as 'derivatives', `business_segment_id` as 'perpetual', `product_id` as null

### Component D: Currency conversion
- **Purpose**: Converts sUSD-denominated fees to USD for standardized reporting
- **Logic**: Applies Token Terminal's standard USD conversion macro to transform sUSD fee amounts to USD equivalents. Uses end-of-day price feeds to get sUSD/USD exchange rates. Corrects for token decimal precision to ensure accurate monetary values. The conversion uses the timestamp of each fee transaction to match with appropriate historical prices.
- **Key fields**: `fees` converted from sUSD wei to USD amounts

### Final aggregation
- **Combining components**: All fee records are aggregated by day using timestamp truncation to daily boundaries. Multiple fees within the same day are summed together to create daily totals.
- **Currency conversion**: USD conversion occurs before daily aggregation using end-of-day price feeds matched to transaction timestamps
- **Time aggregation**: Daily aggregation boundaries are determined by truncating block timestamps to day precision in the chain's local timezone
- **Final calculation**: The final metric value represents the total USD value of all trading fees charged to Kwenta users each day. Gap filling applies zero values for days with no trading activity. Chain availability filtering ensures data quality by only including periods with reliable data availability.

*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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