# Meteora Liquidity Pools Revenue Methodology

## 1. Overview

Revenue is measured as the portion of swap fees retained by the protocol from Meteora Liquidity Pools. Earnings generated directly from the protocol's take rate on liquidity pool transactions are represented by this metric, before operational costs or incentives are accounted for. The financial sustainability and business performance of the liquidity pool product are evaluated using this metric. The remaining portion of the collected fees is distributed to supply-side participants, such as liquidity providers.

## 2. Data sources

- **Blockchain events**: `Swap` from `DAMMV1` programs; `SetPoolFees`, `CreateConfig`, and `InitializePool` from `DAMM_v1` programs; `EvtSwap2`, `InitializePool`, `InitializeCustomizablePool`, and `InitializePoolWithDynamicConfig` from `DAMM_v2` programs; `Migration` from `DBC` programs; and Solana asset balance changes and trade events, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Meteora Liquidity Pools V1 protocol fee extraction

- **Purpose**: Extract protocol fees from DAMM V1 pools
- **Logic**: `Swap` from `DAMMV1` programs is parsed to identify swap transactions. The input asset amount is multiplied by the pool's trade fee rate and the owner trade fee rate to determine the protocol fee amount. These fee rates are retrieved from the historical fee schedule established by `SetPoolFees` or `CreateConfig` from `DAMM_v1` programs. The fee asset is identified by matching the protocol fee account from the swap instruction with the pool's initialized fee accounts from `InitializePool` from `DAMM_v1` programs.
- **Key fields**: `pool_address`, `amount`, `protocol_token_fee`, `trade_fee_numerator`, `trade_fee_denominator`, `owner_trade_fee_numerator`, `owner_trade_fee_denominator`

### Component B: Meteora Liquidity Pools V2 protocol fee extraction

- **Purpose**: Extract protocol fees from DAMM V2 pools
- **Logic**: `EvtSwap2` from `DAMM_v2` programs is parsed to extract the protocol fee directly from the protocol fee field. The fee asset is determined based on the swap's fee collection mode and trade direction, mapped against the pool's initialized assets from `InitializePool`, `InitializeCustomizablePool`, or `InitializePoolWithDynamicConfig` from `DAMM_v2` programs. If the fee collection mode is set to zero, the fee asset is determined by the trade direction; otherwise, it defaults to asset B.
- **Key fields**: `pool_address`, `protocol_fee`, `collect_fee_mode`, `trade_direction`

### Component C: Launchpad pool exclusion

- **Purpose**: Filter out pools belonging to Meteora Launchpad
- **Logic**: Pools that originated from a Dynamic Bonding Curve graduation are identified using `Migration` from `DBC` programs. These graduated pools are excluded from the Meteora Liquidity Pools product calculations and routed to Meteora Launchpad.
- **Key fields**: `pool_address`, `virtual_pool`

### Component D: Wash trading exclusion, decimal normalization, and USD conversion

- **Purpose**: Exclude wash trading pool-days, normalize protocol fee amounts, and convert them to USD
- **Logic**: Protocol fee amounts from DAMM V2 pools are filtered to exclude pool-days flagged for wash trading, which are identified when the daily quote-leg volume is greater than 20 times the quote-leg reserve. The remaining protocol fee amounts for Meteora Liquidity Pools are aggregated daily by asset. These raw amounts are normalized by decimal precision using asset metadata and multiplied by end-of-day asset prices to calculate the daily revenue in USD. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `timestamp`, `revenue`, `price_usd`, `decimals`, `pool_address`, `turnover`

*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.