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

Level Finance is a non-custodial exchange for spot and perpetual contracts built on BNB Chain. Level Finance was founded by an anonymous team and was launched in December 2022.

LVL tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Level Finance

# Level Finance Supply-side fees Methodology

## 1. Overview

Level Finance supply-side fees represents the portion of trading fees that goes to liquidity providers and other supply-side participants, as opposed to protocol revenue. This metric captures fees from both perpetual and spot trading activities across Level Finance's BSC v1 and Arbitrum v2 deployments. The calculation involves extracting raw trading fees from blockchain events, applying dynamic protocol fee splits to determine the supply-side portion, and aggregating the results in USD terms on a daily basis.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Level Finance contract events**: Parsed `IncreasePosition`, `DecreasePosition`, and `LiquidatePosition` events from Level Finance Pool contracts containing perpetual trading fee data
- **Level Finance swap events**: Parsed `Swap` events from Level Finance Pool contracts containing spot trading fee data  
- **Protocol fee split events**: Parsed `DaoFeeSet` events from Level Finance Pool contracts that track changes to the fee split ratio between protocol revenue and supply-side rewards
- **Token metadata**: External token information including symbols and decimal places for proper fee normalization
- **End-of-day price feeds**: Daily token price data for USD conversion of fee amounts
- **Blockchain transaction data**: BSC and Arbitrum transaction logs containing the above events with block timestamps and transaction context

## 3. Step-by-step calculation

### Component A: Perpetual trading fees extraction
- **Purpose**: Extract fees from leveraged perpetual trading activities
- **Logic**: Parse `IncreasePosition`, `DecreasePosition`, and `LiquidatePosition` events from Level Finance Pool contracts on BSC v1 and Arbitrum v2. Extract the `feeValue` field from each event and normalize by dividing by 10^30 to correct for decimal precision. Create unique identifiers by concatenating formatted block numbers and log indices. Classify all perpetual fees under "Perpetual trading" business line within the derivatives/perpetual segment. Extract the `indexToken` field to identify the token in which fees were paid.
- **Key fields**: `feeValue` (fee amount with 30 decimals), `indexToken` (token address), `block_timestamp` (event timing), `address` (contract address)

### Component B: Spot trading fees extraction  
- **Purpose**: Extract fees from spot trading activities and convert to USD
- **Logic**: Parse `Swap` events from Level Finance Pool contracts to extract the `fee` field representing spot trading fees. Join with token metadata to obtain token symbols for both input and output tokens (`tokenIn` and `tokenOut`). Create trading pair symbols by alphabetically ordering the token symbols (e.g., "TOKEN1-TOKEN2" vs "TOKEN2-TOKEN1") to ensure consistency. Apply decimal correction using the token's decimal places. Convert fee amounts to USD using end-of-day price feeds matched by timestamp, chain, and token address. Classify under "Spot trading" business line within derivatives/perpetual segment.
- **Key fields**: `fee` (raw fee amount), `tokenIn` and `tokenOut` (trading pair tokens), corrected `amount` (decimal-adjusted fee), `price_usd` (token price for conversion)

### Component C: Protocol fee split tracking
- **Purpose**: Track dynamic changes to the protocol's fee split ratio
- **Logic**: Parse `DaoFeeSet` events to extract fee split updates. The `value` field represents the protocol's share of fees as a ratio between 0 and 1, normalized by dividing by 10^10. Use window functions to create time ranges by calculating the next fee split update for each chain. This creates effective date ranges where each fee split ratio applies from its event until the next update (or indefinitely if it's the latest update).
- **Key fields**: `value` (raw fee split ratio), `dao_fee_split` (normalized ratio), `next_id` (boundary for fee split period)

### Component D: Fee stream unification
- **Purpose**: Combine perpetual and spot fees into a consistent schema
- **Logic**: Union perpetual fees (with token symbols from metadata joins) and processed spot fees (already in USD with pair symbols). Ensure consistent field mapping including timestamp truncation to daily boundaries, chain identifiers, business line classification, and token addressing. Both fee types maintain their respective business line classifications but use the same dimensional structure.
- **Key fields**: `timestamp` (daily), `chain`, `business_line`, `token_address`, `token_symbol`, `fees` (amount)

### Final aggregation
- **Combining components**: Join the unified fee stream with fee split data using chain matching and time-based logic where the fee event ID falls within the fee split's effective range (between current and next fee split updates)
- **Fee split application**: Calculate supply-side fees by multiplying each fee amount by (1 - `dao_fee_split`) to determine the portion that goes to supply-side participants rather than protocol revenue
- **Currency conversion**: Spot fees are converted to USD using end-of-day price feeds, while perpetual fees may require additional USD conversion depending on the token
- **Time aggregation**: All fees are aggregated to daily boundaries using timestamp truncation, maintaining chain and token-level granularity
- **Final calculation**: Sum the supply-side portion of both perpetual and spot trading fees by day, chain, and token, applying standard metric formatting and chain availability filters to produce the final daily supply-side fees metric

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

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

Level FinanceLVL

Supply-side fees

Supply-side fees

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