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.

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# LayerZero Fees Methodology

## 1. Overview

Fees measures the total value users pay to use a project’s application. In the context of LayerZero and Stargate, this metric captures the total costs incurred by users to send cross-chain messages or bridge assets across various networks. These fees are utilized to compensate infrastructure participants, including Decentralized Verifier Networks (DVNs), message executors, and liquidity providers. The metric includes activity across LayerZero V1, LayerZero V2, and Stargate.

## 2. Data sources

- **Blockchain events**: `DVNFeePaid` and `ExecutorFeePaid` events from `SendUln301` and `SendUln302` contracts, `send` function calls from `EndpointV1` contracts, `Swap` events from `Pool` contracts, and pool state snapshots, covering Ethereum, Arbitrum, Avalanche, 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 infrastructure fees

- **Purpose**: Capture fees paid to Decentralized Verifier Networks (DVNs) and message executors for LayerZero V1 and LayerZero V2 transactions
- **Logic**: `DVNFeePaid` and `ExecutorFeePaid` events are parsed from `SendUln301` (V1) and `SendUln302` (V2) contracts across all supported chains. For DVN payments, the elements in the fee array are summed to represent total DVN verification costs. For executors, the fee amount is extracted directly from the event data.
- **Key fields**: `fees` array (for DVN), `fee` (for executors), `block_timestamp`

### Component B: LayerZero V1 legacy fee estimation

- **Purpose**: Estimate transaction fees for LayerZero V1 activity occurring prior to the deployment of dedicated fee-tracking contracts
- **Logic**: `send` function calls from `EndpointV1` contracts are monitored for activity on or before February 5, 2024. The total transaction value is captured, and any native asset airdrop amounts specified in the adapter parameters are subtracted. This result is identified as the estimated fee paid for message delivery.
- **Key fields**: `value`, `adapterparams`, `block_timestamp`

### Component C: Stargate V1 and V2 fees

- **Purpose**: Aggregate fees paid to liquidity providers and the protocol for asset bridging via Stargate
- **Logic**: For Stargate V1, `Swap` events are parsed from `Pool` contracts to aggregate liquidity provider (LP) fees and protocol fees. For Stargate V2, fee accruals are determined by calculating the daily delta between cumulative snapshots of pool state data. These amounts are mapped to the underlying bridge assets using pool dimension tables.
- **Key fields**: `lp_fee_amount`, `protocol_fee_amount`, `fee_accrual`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all fee components and convert them into a uniform USD valuation
- **Logic**: All collected fee amounts are normalized by decimal precision based on the asset metadata. Native gas asset payments and bridge token fees are multiplied by the respective end-of-day price feeds. All components are then aggregated by day and chain to produce the final metric.
- **Key fields**: `timestamp`, `fees`, `price_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).

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Fees

Fees

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Chain breakdown