We currently only track the Squeeth product. Overcollateralized borrowers mint Squeeth (oSQTH), a power perpetual token that tracks the price of ETH squared.

Opyn builds derivatives and options infrastructure. Opyn was founded by Nick Sawinyh, Zubin Koticha and Alexis Gauba and launched in 2019.

Opyn team & investors own and govern the protocol. They do not currently charge a fee for Squeeth mints (revenue). Opyn’s investors include Paradigm, Dragonfly Capital, etc.

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Opyn

# Opyn Earnings Methodology

## 1. Overview

The Opyn earnings metric measures the protocol's net earnings by calculating the difference between revenue and expenses. For Opyn v1, this metric consistently returns zero because the protocol does not collect fees or distribute token incentives. The calculation tracks Squeeth option minting activity but applies zero values for both revenue and expense components, resulting in zero earnings across all time periods.

## 2. Data sources

The calculation relies on these underlying data sources:
- **Ethereum event logs**: Parsed `Controller_MintShort` events from the Opyn v1 Controller contract, which represent Squeeth option minting transactions
- **End-of-day price feeds**: Token price data used for USD conversion of oSQTH token amounts
- **Token metadata**: Decimal precision information for proper amount calculations and normalization

## 3. Step-by-step calculation

### Component A: Trading activity extraction
- **Purpose**: Identifies and extracts Squeeth option minting transactions
- **Logic**: Filters Ethereum `Controller_MintShort` events specifically for the oSQTH token address (`0xf1b99e3e573a1a9c5e6b2ce818b617f0e664e86b`). Each event represents a user minting short positions on Squeeth options. The extraction captures transaction details including timestamps, amounts, and account addresses, then classifies these as options trading activities within the derivatives market sector.
- **Key fields**: `block_timestamp` for timing, `amount` for transaction size, `account_address` for user identification, and `token_address` for asset specification

### Component B: Volume calculation
- **Purpose**: Converts raw minting amounts to USD-denominated notional trading volume
- **Logic**: Takes the extracted mint amounts and applies decimal correction based on the oSQTH token's precision, then converts to USD using end-of-day price feeds. The volume is aggregated daily using timestamp truncation to create consistent time series data points.
- **Key fields**: `notional_trading_volume` representing USD-equivalent mint amounts, `timestamp` for daily aggregation boundaries

### Component C: Fee calculation
- **Purpose**: Determines protocol fee revenue
- **Logic**: Explicitly sets all fees to zero, as the Opyn v1 protocol does not collect fees from Squeeth minting or trading activities. This hardcoded approach ensures the revenue component remains at zero across all time periods and products.
- **Key fields**: `fees` field consistently set to 0

### Component D: Token incentive calculation
- **Purpose**: Measures token-based rewards or incentives distributed
- **Logic**: Sets all token incentives to zero, indicating that the protocol does not distribute token rewards to users for participating in Squeeth activities. This maintains consistency with the protocol's non-incentivized model.
- **Key fields**: `token_incentives` field consistently set to 0

### Component E: Expense calculation  
- **Purpose**: Aggregates all protocol expenses
- **Logic**: Uses token incentives as the sole expense component, which equals zero since no incentives are distributed. This creates a comprehensive expense calculation that accounts for the protocol's minimal cost structure.
- **Key fields**: `expenses` derived directly from `token_incentives` value

### Component F: Revenue calculation
- **Purpose**: Determines total protocol revenue
- **Logic**: Sets revenue equal to fees, which results in zero revenue since fees are zero. This reflects the protocol's business model where no direct revenue is generated from user activities.
- **Key fields**: `revenue` field derived from `fees` and set to 0

### Final aggregation
- **Combining components**: The earnings calculation subtracts expenses from revenue using the `calculate_earnings` macro, performing the operation (0 - 0 = 0)
- **Currency conversion**: All monetary values are already converted to USD during the volume calculation phase using end-of-day price feeds
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with a fill_zeros strategy ensuring continuous time series without gaps
- **Final calculation**: Earnings equals revenue minus expenses, consistently yielding zero across all time periods due to the protocol's fee-free structure

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

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

OpynOSQTH

Earnings

Earnings

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