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

KyberSwap is a non-custodial exchange protocol & aggregator built on Ethereum and other adjacent blockchains. KyberSwap was founded by Loi Luu and Victor Tran in 2017.

KNC tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Kyber Network raised $52 million in an ICO in 2017.

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KyberSwap

# KyberSwap Earnings Methodology

## 1. Overview

KyberSwap earnings are calculated as total revenue minus total expenses. The protocol's net profit is measured by combining revenue from trading fees across multiple product lines, including AMM pools and the DEX aggregator, and subtracting operational expenses from liquidity incentive programs. Financial performance is tracked across all supported contract versions and deployments.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pool`, `ElasticPool`, `KSPool`, and `DMMPool` contracts; `PoolCreated` events from `Factory`, `ElasticFactory`, and `KSFactory` contracts; `Fee` events from `MetaAggregationRouterV2` contracts; `FeeDistributed` events from `KyberFeeHandler` contracts; `Vested` events from `RewardLocker` contracts; and `Claimed` events from `RewardsDistributor` contracts, covering Ethereum, Arbitrum, Avalanche, Base, and 12 other chains
- **External data**: End-of-day price feeds for native and traded assets

## 3. Step-by-step calculation

### Component A: AMM trading fee revenue

- **Purpose**: Calculate revenue from fees generated by automated market maker (AMM) pool trading
- **Logic**: Swap events are extracted from AMM pools across V2 and V3 versions. These events are joined with pool creation events to determine fee tiers for each trading pair. Trading volume is calculated by taking the absolute value of asset amount changes from swap events, normalizing by decimal precision, and converting both assets to USD using end-of-day price feeds. The minimum USD value between the two assets is used to prevent price manipulation from affecting volume calculations. A protocol fee split percentage is applied to derive protocol revenue, which is set to 10% of trading fees before August 8, 2023, and 16% afterwards. V3 pools are noted as decommissioned after November 23, 2023, due to a contract exploit.
- **Key fields**: `deltaQty0` and `deltaQty1` for asset amounts, `feeInPrecision` for V2 fee rates, `swapFeeUnits` for V3 fee rates, `token0` and `token1` addresses

### Component B: Aggregator fee revenue
- **Purpose**: Calculate revenue from direct fees collected by KyberSwap's DEX aggregator
- **Logic**: Fee events are extracted from `MetaAggregationRouterV2` contracts. Fees are charged on swaps that route through multiple DEXs. Revenue is set equal to the `totalFee` parameter from fee events. Native asset identifier substitution is handled by replacing the placeholder address `0xeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee` with the appropriate wrapped asset address for each chain. Specific denylisted asset addresses are filtered out. Amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `totalFee` for fee amounts, `token` for fee asset address, `srcToken` and `dstToken` for swap pair identification

### Component C: Legacy fee revenue

- **Purpose**: Calculate revenue from historical Ethereum-based KyberSwap trading fees
- **Logic**: Fee distribution events are extracted from the legacy `KyberFeeHandler` contract on Ethereum. Revenue is set equal to the `rewardWei` parameter representing protocol rewards. ETH amounts are converted to USD using wrapped ETH prices. Historical trading activity before the current AMM and aggregator implementations is covered.
- **Key fields**: `rewardWei` for protocol reward amounts, `platformFeeWei` and `rebateWei` for fee breakdown components

### Component D: Liquidity incentive expenses

- **Purpose**: Calculate expenses from KNC asset distributions used to incentivize liquidity provision
- **Logic**: Reward distribution events are extracted from `RewardLocker` and `RewardsDistributor` contracts. KNC asset payments made to liquidity providers are tracked as protocol expenses. Events are filtered to include only KNC asset distributions by matching the asset address parameter against known KNC addresses on each chain. Amounts are normalized by decimal precision and converted to USD using end-of-day KNC price feeds.
- **Key fields**: `vestedQuantity` for reward locker amounts, `claimAmounts` for distributor amounts, `token` and `tokens` for asset address validation

### Component E: Final aggregation and earnings calculation

- **Purpose**: Combine all revenue and expense components to calculate net earnings
- **Logic**: All revenue components (AMM fees, aggregator fees, legacy fees) and all expense components (liquidity incentives) are summed on a daily basis. All amounts are converted to USD using end-of-day asset price feeds, with proper decimal adjustment based on each asset's decimal precision. All events are aggregated to daily boundaries using timestamp truncation, with forward-fill applied for dates with no activity to maintain continuous time series. Earnings are calculated as total daily revenue minus total daily expenses, providing the protocol's net profit for each day across all operations.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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