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 Revenue Methodology

## 1. Overview

Level Finance revenue represents the portion of trading fees that goes to the protocol (DAO) rather than liquidity providers. The metric combines fees from two business lines: perpetual trading (leveraged positions) and spot trading (token swaps). Revenue is calculated by applying a configurable fee split percentage to the total fees collected, where the split determines what portion flows to Level Finance versus liquidity providers.

## 2. Data sources

The calculation relies on these raw data sources:
- **Perpetual trading events**: Parsed `IncreasePosition`, `DecreasePosition`, and `LiquidatePosition` events from Level Finance Pool contracts on BSC and Arbitrum
- **Spot trading events**: Parsed `Swap` events from Level Finance Pool contracts on BSC and Arbitrum  
- **Fee configuration events**: Parsed `DaoFeeSet` events from Level Finance Pool contracts that set the revenue split percentage
- **Token metadata**: Token symbol and decimal information for proper fee normalization
- **External data**: End-of-day token price feeds for USD conversion of fees collected in various tokens

## 3. Step-by-step calculation

### Component A: Perpetual trading fees
- **Purpose**: Captures trading fees from leveraged perpetual positions across position lifecycle events
- **Logic**: Extracts fees from three types of Pool contract events on BSC (v1) and Arbitrum (v2). For each `IncreasePosition`, `DecreasePosition`, and `LiquidatePosition` event, the `feeValue` field contains the raw fee amount. Fees are normalized by dividing by 10^30 to correct for contract decimal precision. Each fee record gets a unique identifier created by concatenating the block number (18 digits) and log index (4 digits) to ensure proper chronological ordering for fee split application.
- **Key fields**: `feeValue` (raw fee amount), `indexToken` (token address for the position), `block_timestamp` (event timing)

### Component B: Spot trading fees  
- **Purpose**: Captures trading fees from token swaps in the spot trading pools
- **Logic**: Extracts fees from `Swap` events on Pool contracts for BSC (v1) and Arbitrum (v2). Each swap contains `tokenIn`, `tokenOut`, and `fee` information. Token symbols are combined alphabetically (e.g., if swapping CAKE for USDT, the result is "CAKE-USDT" regardless of swap direction) for consistent naming. Fees undergo decimal correction using a standardized macro, then are converted to USD values by joining with end-of-day price feeds using the fee token address and event timestamp.
- **Key fields**: `tokenIn` and `tokenOut` (swap token addresses), `fee` (raw fee amount), token symbols for pair naming

### Component C: Fee split configuration
- **Purpose**: Determines what percentage of total fees goes to Level Finance (revenue) versus liquidity providers
- **Logic**: Extracts fee split updates from `DaoFeeSet` events on Pool contracts. The `value` field is normalized by dividing by 10^10 to produce a decimal between 0 and 1 representing the DAO's share of fees. Each fee split update creates a validity range using the event's unique ID and the next update's ID, allowing historical fees to be matched with the correct split percentage that was active at the time of the fee collection.
- **Key fields**: `value` (raw split percentage), validity ranges determined by event IDs

### Final aggregation
- **Combining components**: Perpetual and spot fees are unioned into a single fee stream with consistent schema including timestamp, chain, business line classification, and normalized amounts
- **Currency conversion**: All fees are converted to USD using end-of-day price feeds matched on token address, chain, and event date
- **Revenue calculation**: Total fees are multiplied by the applicable `dao_fee_split` percentage determined through temporal matching of fee collection events with fee split configuration updates
- **Time aggregation**: Events are grouped by day using timestamp truncation, and the finalize metric macro applies standardized formatting and fills any missing days with zeros
- **Final calculation**: Daily revenue equals the sum of all fees collected that day multiplied by the DAO fee split percentage that was active for each fee collection event

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Level FinanceLVL

Revenue

Revenue

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