Liquidity providers deposit funds into SushiSwap and NFTs into vaults and receive redemption and minting fees from users (supply-side fees).

NFTX is a non-custodial NFT marketplace protocol built on Ethereum. NFTX was founded by Alex Gausman and launched in 2021.

NFTX tokenholders own and govern the protocol. They currently take a cut of the redemption and minting fees (in the absence of liquidity providers) paid by users (revenue). NFTX's investors include Robot Ventures, etc.

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NFTX

# NFTX Supply-side fees Methodology

## 1. Overview

Supply-side fees for NFTX represent the portion of trading fees that are distributed to liquidity providers rather than retained by the protocol. NFTX is an NFT marketplace and liquidity protocol where users can deposit NFTs into vaults and receive fungible tokens, with fees generated from trading activities. This metric captures the daily USD value of fees paid out to liquidity providers across NFTX vaults, excluding protocol fees that go to the NFTX treasury.

## 2. Data sources

The calculation relies on several Ethereum blockchain data sources:

- **NFTX protocol events**: Parsed `NewFeeDistributor` events from the NFTX VaultFactory contract to identify authorized fee distributor addresses
- **NFTX vault events**: Parsed `NewVault` events from the NFTX VaultFactory contract containing vault creation details including vault addresses and associated NFT collection addresses
- **Ethereum token transfers**: Token transfer events filtered by from_address to capture fee distributions from NFTX fee distributor accounts
- **End-of-day price feeds**: Token price data for USD conversion of fee amounts
- **Token metadata**: Token decimal information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Fee distributor identification
- **Purpose**: Identify authorized NFTX fee distributor addresses that handle fee payments
- **Logic**: Extract all `NewFeeDistributor` events from the NFTX VaultFactory contract on Ethereum. Each event contains the address of a newly registered fee distributor account that is authorized to distribute trading fees
- **Key fields**: `newDistributor` address from the event parameters

### Component B: Vault metadata collection
- **Purpose**: Map NFTX vault addresses to their associated NFT collections and provide context for fee classification
- **Logic**: Process all `NewVault` events from the NFTX VaultFactory contract to build a comprehensive mapping of vault information. Each event provides the relationship between vault IDs, vault token addresses, and the underlying NFT collection addresses
- **Key fields**: `vaultId` for unique identification, `assetAddress` for the NFT collection, `vaultAddress` for the fungible token contract

### Component C: Fee payment identification  
- **Purpose**: Identify all token transfers that represent fee payments from NFTX fee distributors
- **Logic**: Filter Ethereum token transfers where the from_address matches any address in the fee distributor list and the token_address matches any vault address. This captures all fee distributions including both protocol fees and liquidity provider rewards. Join with vault metadata to enrich transfers with NFT collection context and business classification
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `from_address` and `to_address` for transfer direction, `token_address` for the fee token, `value` for the fee amount

### Component D: Supply-side fee filtering
- **Purpose**: Isolate fees paid to liquidity providers by excluding protocol fees
- **Logic**: Filter the fee payments to exclude transfers where the `to_address` equals the hardcoded protocol fee address `0x40d73df4f99bae688ce3c23a01022224fe16c7b2`. All remaining transfers represent fees distributed to liquidity providers and other supply-side participants
- **Key fields**: `to_address` for recipient classification, `amount` for the fee value going to supply-side

### Final aggregation
- **Combining components**: Use the filtered supply-side fee transfers as the base dataset with all necessary metadata already joined
- **Currency conversion**: Convert fee amounts to USD using end-of-day price feeds matched by token address and date, with automatic correction for token decimal places to ensure proper unit conversion
- **Time aggregation**: Truncate timestamps to daily boundaries using the transaction block timestamp, grouping all fees within each 24-hour period
- **Final calculation**: Sum all supply-side fee amounts in USD by day, chain, market sector, business segment, and token address. Apply standard metric finalization including schema validation, business classification assignment, and zero-filling for days with no fee activity to ensure complete time series data

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

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

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