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Exchanges (CEX)

# OKX Cost of revenue Methodology

## 1. Overview

Cost of revenue is measured as the expenses incurred by X Layer when settling transactions and posting data batches to the Ethereum mainnet. These expenses are represented by the L1 data availability and settlement fees paid to Ethereum by the protocol's batcher wallets and rollup contracts. This metric is utilized to evaluate the operational efficiency and net profitability of the layer 2 network. The cost is denominated in the native settlement asset and converted to USD.

## 2. Data sources

- **Blockchain events**: Transaction data from the Ethereum mainnet, specifically targeting transactions associated with X Layer batcher wallets and rollup contracts, covering Ethereum
- **External data**: End-of-day price feeds for the native settlement asset (ETH)

## 3. Step-by-step calculation

### Component A: Settlement transaction identification

- **Purpose**: Identify transactions on Ethereum that represent X Layer settlement and data availability postings
- **Logic**: Transactions are filtered based on two distinct operational eras of the rollup. For the Polygon CDK Validium era, transactions sent to the designated CDK rollup contract are extracted. For the OP Stack era, transactions sent from specific batcher wallet addresses are identified. The two eras are kept disjoint by applying specific start and end date boundaries.
- **Key fields**: `block_timestamp`, `from_address`, `to_address`, `transaction_hash`

### Component B: L1 gas and blob fee calculation

- **Purpose**: Calculate the total transaction fees paid for L1 settlement
- **Logic**: For each identified settlement transaction, gas fees and blob fees are extracted. The total settlement cost is calculated by multiplying the gas used by the effective gas price, and adding the product of the blob gas used and the blob gas price. The resulting amounts are normalized by decimal precision to represent the cost in the native settlement asset (ETH).
- **Key fields**: `gas_price`, `blob_gas_price`, `gas_used_amount`, `blob_gas_used_amount`

### Component C: USD conversion and daily aggregation

- **Purpose**: Aggregate settlement costs daily and convert the values to USD
- **Logic**: Settlement costs are aggregated to a daily granularity using UTC day boundaries. The daily native asset amounts are multiplied by end-of-day price feeds to determine the cost of revenue in USD. Missing days are filled with zeros to ensure a continuous time series.
- **Key fields**: `timestamp`, `cost_of_revenue`

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

Expenses paid to third parties to deliver core service output.

OKXOKB

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown