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 Supply-side fees Methodology

## 1. Overview

KyberSwap supply-side fees are measured as the portion of trading fees and charges that flow to liquidity providers and the protocol's supply-side participants. Three distinct revenue streams are combined for this metric: direct fees from KyberSwap's aggregator and legacy products, flash loan fees (discontinued in November 2023), and the supply-side portion of trading fees from AMM pools. Time-sensitive fee splits are applied, with the supply-side portion changing from 90% to 84% on August 8, 2023.

## 2. Data sources

- **Aggregator fee events**: `Fee` events are parsed from `MetaAggregationRouterV2` contracts, covering Ethereum, Arbitrum, Base, Polygon, and 12 other chains, capturing `totalFee` amounts in native or specific assets
- **Legacy protocol fee events**: `FeeDistributed` events are parsed from `KyberFeeHandler` contracts on Ethereum, containing `platformFeeWei`, `rewardWei`, and `rebateWei` amounts
- **Flash loan events**: `Flash` events are parsed from `Pool` and `ElasticPool` contracts on KyberSwap V3 across multiple chains, recording `qty0`, `qty1`, `paid0`, and `paid1` amounts (discontinued November 23, 2023)
- **Trading events**: `Swap` events are parsed from `KSPool`, `DMMPool`, `Pool`, and `ElasticPool` contracts capturing asset amount changes (`deltaQty0`, `deltaQty1` for V3, calculated from `amount0In/Out` and `amount1In/Out` for V2)
- **Aggregator trading events**: `Swapped` events are parsed from `MetaAggregationRouter` contracts and legacy `KyberTrade` events are parsed from `KyberNetwork` contracts capturing `spentAmount` and `returnAmount`
- **Trading pair metadata**: `PoolCreated` events are parsed from `Factory` and `ElasticFactory` contracts containing pool addresses, asset pairs, and fee tier information (`swapFeeUnits` for V3, hardcoded for V2)
- **Transaction data**: Blockchain transaction records are used for mapping user addresses and transaction context
- **Asset metadata**: Asset symbol, decimal, and contract address information are used for proper amount normalization
- **External data**: End-of-day price feeds are used for daily asset prices in USD for currency conversion

## 3. Step-by-step calculation

### Component A: Aggregator and legacy fees

- **Purpose**: Captures direct fees charged by KyberSwap's aggregator and legacy protocol components
- **Logic**: Fee amounts are extracted from `MetaAggregationRouterV2` `Fee` events across multiple chains, with native asset identifier addresses substituted with corresponding wrapped asset addresses. For Ethereum legacy fees, platform fees and rewards are combined while rebates are separated as the supply-side portion. Fees are aggregated by day, transaction, and asset address, then normalized by decimal precision and converted to USD using end-of-day price feeds
- **Key fields**: `totalFee` from aggregator events, `platformFeeWei` + `rewardWei` as total fees with `rebateWei` as supply-side portion from legacy events

### Component B: Flash loan fees

- **Purpose**: Calculates fees earned from flash loans provided by KyberSwap V3 pools (discontinued November 23, 2023)
- **Logic**: `Flash` events from `Pool` and `ElasticPool` contracts are processed, with borrowed amounts and fees paid extracted. These are joined with trading pair metadata to obtain asset decimals and account names. Asset0 and asset1 fees are summed, normalized by decimal precision, and converted to USD. All flash loan fees are treated as supply-side revenue
- **Key fields**: `qty0`, `qty1` as borrowed amounts, `paid0`, `paid1` as fees paid by borrowers

### Component C: Trading volume fees

- **Purpose**: Calculates the supply-side portion of fees generated from AMM trading activity
- **Logic**: Trading data from V2 and V3 `Swap` events is combined with aggregator and legacy trades. This is joined with trading pair dimensions to obtain fee tiers, asset metadata, and account names. For each trade, absolute asset amounts are calculated and converted to USD using end-of-day prices. The lesser USD value between asset pairs is used to prevent price manipulation. Trading volume is calculated, then fee tier and time-based supply-side split percentages are applied
- **Key fields**: `deltaQty0`, `deltaQty1` for V3 swaps, calculated net amounts from `amount0In/Out` and `amount1In/Out` for V2, `fee_tier` from pool metadata, `swapFeeUnits` for V3 pools

### Final aggregation

- **Combining components**: All three fee components (aggregator/legacy, flash loans, trading) are unioned with a consistent schema including timestamp, chain, business line classifications, contract addresses, and asset information
- **Currency conversion**: All amounts are converted to USD using end-of-day asset prices matched by timestamp, chain, and asset address. Missing prices result in zero values
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation, with a consistent daily grain across all components
- **Final calculation**: Supply-side fees are calculated as the sum of direct aggregator/legacy fees, all flash loan fees, and trading volume multiplied by fee tier and supply-side percentage (90% before August 8, 2023, 84% afterward). The result is processed through a finalization macro that applies zero-filling strategies and chain availability filters

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

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

KyberSwapKNC

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown