# LayerZero V2 Fees Methodology

## 1. Overview

Fees measures the total value paid by users to send cross-chain messages or bridge assets via LayerZero V2. Total value is derived from fees paid to verifiers and executors, as well as service fees accrued within Stargate V2 liquidity pools. These fees represent the cost of utilizing the underlying transport and liquidity infrastructure across all supported chains. All amounts are denominated in native gas assets or bridged assets and converted to USD.

## 2. Data sources

- **Blockchain events**: `DVNFeePaid` and `ExecutorFeePaid` events from `SendUln302` contracts, and state-based pool statistics from Stargate V2 contracts, covering Ethereum, Arbitrum, Base, Polygon, and 26 other chains
- **External data**: End-of-day price feeds for native gas assets and underlying bridge assets

## 3. Step-by-step calculation

### Component A: LayerZero V2 messaging fee extraction

- **Purpose**: Captures fees paid by users for cross-chain message verification and execution
- **Logic**: Messaging fees are extracted from `DVNFeePaid` and `ExecutorFeePaid` events emitted by `SendUln302` contracts. For `DVNFeePaid` events, all elements within the `fees` array are summed to capture the total decentralized verifier network (DVN) fee component. For `ExecutorFeePaid` events, the `fee` field is parsed to identify the payment for destination chain message execution.
- **Key fields**: `fees` array (DVN payments), `fee` (executor payments), `transaction_hash`

### Component B: Stargate V2 bridge fee accrual

- **Purpose**: Captures service fees generated through the Stargate V2 liquidity layer
- **Logic**: Cumulative fee accrual values are retrieved from Stargate V2 pool statistics. Daily fee increments are calculated by taking the delta between the current cumulative fee value and the value from the previous day. These amounts are then mapped to the underlying asset addresses and normalized according to their specific decimal precision.
- **Key fields**: `fee_accrual` (cumulative fees), `underlying_token_address`, `pool_address`

### Component C: USD conversion and final aggregation

- **Purpose**: Normalizes all fee components into a common currency for protocol-wide reporting
- **Logic**: All identified fee amounts are normalized by their respective decimal precision. These values are multiplied by end-of-day asset price feeds to determine the USD value. Daily totals are aggregated across all chains and products, with a final filter applied to ensure data availability across the supported network.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `fees` (USD)

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Interoperability

LayerZero uses a decentralized network of Validator Nodes to facilitate secure and fast communication between different blockchains.

LayerZero allows users to send and receive messages between different blockchains, and to bridge tokens between different blockchains.

LayerZero is a cross-chain interoperability protocol that enables secure and fast communication between different blockchains.

LayerZero v2

Fees

Fees

Chain breakdown