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

MUX is a non-custodial exchange for perpetual contracts built on Arbitrum. The previous version of MUX was MCDEX, which was founded by Jean Miao & Liu Jie in 2021 and relaunched as MUX in Aug 2022. This dashboard does not take the MUX perpetual aggregator into account yet.

MCB tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). MUX's investors include Delphi Ventures, DeFiance Capital, Robot Ventures, etc.

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# MUX Earnings Methodology

## 1. Overview

MUX earnings represent the protocol's net profit, calculated as total revenue minus total expenses. This metric measures the protocol's profitability from operating a multi-chain perpetual derivatives trading platform that both provides direct trading services and aggregates trades through other protocols. The calculation uses a simple formula: Earnings = Revenue - Expenses, where revenue comes from trading fee splits and aggregator rebates, while expenses consist entirely of token incentive distributions.

## 2. Data sources

The calculation relies on several types of blockchain data sources:

- **MUX protocol events**: Parsed `Trade_event`, `OpenPosition_event`, `ClosePosition_event`, and `Liquidate_event` logs from MUX v1 and v2 contracts across Arbitrum, BSC, Avalanche, Fantom, and Optimism networks
- **Token transfer events**: Arbitrum `Transfer` events for tracking GMX v1 fee rebate payments and MUXLP token movements for protocol-owned liquidity calculations
- **GMX protocol events**: Parsed `PositionFeesCollected` and `EventLog1` events from GMX v2 contracts on Arbitrum and Avalanche for identifying MUX-aggregated trades
- **Gains Network events**: Parsed fee charging events from Gains Network v6 on Arbitrum and v7 on Polygon for calculating MUX rebate revenue
- **Token incentive events**: MCB token reward events (`RewardPaid_event`, `Claim_event`) from MUX staking and vesting contracts on Arbitrum and BSC
- **External price feeds**: End-of-day token price feeds for USD conversion of all revenue and expense amounts
- **Token metadata**: Token decimal and symbol information for proper amount calculations and standardization

## 3. Step-by-step calculation

### Component A: Direct perpetual trading revenue
- **Purpose**: Calculate revenue from fees generated by users trading directly on MUX's perpetual trading platform
- **Logic**: Extract trading fees from MUX v1 `Trade_event` logs using the `fee` parameter and liquidation penalties from `Liquidate_event` logs using the `penalty` parameter across Arbitrum and BSC. For MUX v2, extract fees from `OpenPosition_event`, `ClosePosition_event`, and `Liquidate_event` logs using the `feeUsd` parameter across five chains (Arbitrum, BSC, Avalanche, Fantom, Optimism). Join position events with asset configuration events to get the correct token address for each trade. All amounts are denominated in USD or converted to USD.
- **Key fields**: Extract `fee` and `penalty` amounts from v1 events, extract `feeUsd` amounts from v2 events, identify relevant tokens through `tokenAddress` field from asset events

### Component B: Aggregator fee rebates revenue  
- **Purpose**: Calculate revenue from rebates earned by routing user trades through external protocols (GMX and Gains Network)
- **Logic**: For GMX v1, identify direct token transfers of WETH and esGMX from GMX fee rebate sender address `0x5f799f365fa8a2b60ac0429c48b153ca5a6f0cf8` to MUX collector address `0xe4cd955c733148b5997c89f22a17e0960811aa70`, treating esGMX as GMX for pricing. For GMX v2, filter `PositionFeesCollected` events by MUX referral code `0x6d757870726f746f636f6c000000000000000000000000000000000000000000`, then apply time-based rebate percentages (5% initially, changed to 0% on 2023-03-24, then 5% on 2023-05-19, then 20% from 2023-06-01). For Gains Network, identify fee events where trades are linked to MUX referral code `0x10c2cbfe29f4f5e4c24d54d36c8f283a61eb0c2f`, applying 12.5% rebate rate throughout the period.
- **Key fields**: Track `value` amounts from token transfers, extract `positionFeeAmount` and `borrowingFeeAmount` from GMX v2 fee events, use `valueDai` from Gains Network fee events, apply `fee_rebate_percentage` based on timestamp

### Component C: Revenue allocation
- **Purpose**: Determine how much of total fees becomes protocol revenue versus payments to liquidity providers
- **Logic**: For MUX v1, apply a fixed 50% revenue split to all fees. For MUX v2, use a dynamic formula based on protocol-owned rate (POR): Revenue = (fees × 0.3) + (fees × 0.7 × POR). Calculate POR by tracking protocol-owned MUXLP supply (transfers to address `0x18891480b9dd2ac5ef03220c45713d780b5cfdef`) and total MUXLP supply (mint and burn events via `MlpFeeTracker_Transfer_event`), then computing POR = protocol-owned supply ÷ total supply.
- **Key fields**: Use fixed `revenue_percentage` of 0.5 for v1, calculate dynamic `por_amount` for v2 based on `pol_amount` and `nonpol_amount` tracking

### Component D: Token incentive expenses
- **Purpose**: Calculate costs from MCB token rewards distributed to users as trading incentives
- **Logic**: Sum all MCB token distributions from three sources: MUX v1 Arbitrum staking rewards using `amount` from `MCBShareToken_RewardPaid_event`, MUX v1 BSC staking rewards using same event structure, and MUX v2 Arbitrum vesting claims using `amount` from `Vester_Claim_event`. Convert all MCB amounts to USD using end-of-day price feeds and apply proper decimal corrections.
- **Key fields**: Extract `reward` amounts from v1 events and `amount` from v2 vesting events, apply `token_address` specific to each chain (Arbitrum: `0x4e352cf164e64adcbad318c3a1e222e9eba4ce42`, BSC: `0x5fe80d2cd054645b9419657d3d10d26391780a7b`)

### Final aggregation
- **Combining components**: Sum all direct trading revenue and aggregator rebate revenue to get total revenue. Token incentive expenses represent total expenses since they are the only expense category for MUX.
- **Currency conversion**: Convert all fee amounts, rebate amounts, and token incentive amounts to USD using end-of-day price feeds, applying appropriate decimal corrections for each token type
- **Time aggregation**: Aggregate all revenue and expense components to daily granularity using day-truncated timestamps, ensuring proper time zone handling
- **Final calculation**: Subtract total daily expenses from total daily revenue to arrive at daily earnings. Apply zero-filling for any missing days to ensure complete time series coverage.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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