Liquidity providers deposit funds into Notional and receive trading fees from borrowers & lenders (supply-side fees).

Notional is a non-custodial fixed-rate, fixed-term lending protocol built on Ethereum. Notional was founded by Jeff Wu & Teddy Woodward and launched in 2020.

NOTE holders own and govern the protocol. They currently take a cut of the total trading fees paid by borrowers & lenders and all of the COMP incentives from funds deposited to Compound (revenue). Notional’s investors include Coinbase Ventures, Nascent Ventures, 1Confirmation, etc.

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Lending

Notional Finance

# Notional Finance Revenue Methodology

## 1. Overview

Notional revenue represents the total daily revenue generated by Notional Finance, a fixed-rate lending protocol built on Ethereum. The metric combines two primary revenue streams: reserve fees accrued from lending operations and COMP token incentives received from Compound V2 integration. This metric answers the business question of how much total revenue Notional generates per day across its lending activities and external incentive programs.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Notional V2 Router contract events**: Parsed `ReserveFeeAccrued` events from Notional's Router contract on Ethereum, capturing fees generated from lending operations
- **Compound V2 Comptroller contract events**: Parsed `DistributedBorrowerComp` and `DistributedSupplierComp` events from Compound's Comptroller contract on Ethereum, tracking COMP token rewards distributed to Notional
- **End-of-day price feeds**: Token price data for USD conversion of revenue amounts
- **Token metadata**: Decimal precision and symbol information for accurate amount calculations
- **Allowlisted token registry**: Hardcoded mapping of Notional's supported Compound LP tokens (cETH, cDAI, cUSDC, cWBTC)

## 3. Step-by-step calculation

### Component A: Reserve fee accruals
- **Purpose**: Captures fees generated from Notional's core lending operations
- **Logic**: Extracts all `ReserveFeeAccrued` events from Notional's Router contract on Ethereum. Each event contains a `currencyId` field that identifies which underlying asset generated the fee and a `fee` amount representing the revenue earned. The currency IDs are mapped to specific Compound LP tokens through an allowlist containing cETH (currency ID 1), cDAI (currency ID 2), cUSDC (currency ID 3), and cWBTC (currency ID 4). Only fees from these allowlisted currencies are included in the revenue calculation.
- **Key fields**: `currencyId` for asset identification, `fee` amount for revenue value, `block_timestamp` for timing, and mapped `token_address` from the allowlist join

### Component B: COMP token incentives
- **Purpose**: Captures COMP token rewards received by Notional from Compound V2 participation
- **Logic**: Extracts `DistributedBorrowerComp` and `DistributedSupplierComp` events from Compound V2's Comptroller contract where the recipient is Notional's distributor address (`0x1344a36a1b56144c3bc62e7757377d288fde0369`). These events represent COMP token rewards earned by Notional for participating in Compound's lending markets as both a borrower and supplier. The `compDelta` field contains the amount of COMP tokens received.
- **Key fields**: `compDelta` for COMP reward amount, `borrower`/`supplier` addresses for filtering to Notional's distributor, `block_timestamp` for timing, and hardcoded COMP token address

### Final aggregation
- **Combining components**: The two revenue streams are combined using a union operation, with both components truncated to daily timestamps and standardized with consistent field names including `chain`, `market_sector_id`, `business_segment_id`, and `token_address`
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day price feeds through the `convert_to_usd_and_correct_decimals` macro, which also applies proper decimal correction based on each token's decimal precision
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day level, ensuring all revenue within a calendar day is grouped together
- **Final calculation**: The final metric applies the `finalize_metric_revenue` macro with a zero-fill strategy, which standardizes the schema, validates data IDs, and fills any gaps in the time series with zero values to ensure complete daily coverage. Chain availability filtering is applied to ensure data quality standards are met.

*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.

Notional FinanceNOTE

Revenue

Revenue

Competitive landscape

Chain breakdown