# ARM Fees Methodology

## 1. Overview

Fees measures the total value generated by the ARM (Automated Redemption Manager) product, representing the economic value produced through its liquidity provision and asset management strategies. This metric includes both direct protocol fees collected by the system and the yield generated by the underlying strategy. Fees are essential for understanding the productivity of the ARM vault and its ability to capture value from market-making activities and automated redemptions.

## 2. Data sources

- **Blockchain events**: `Deposit`, `RedeemRequested`, `FeeCollected`, and `FeeUpdated` events from `LidoARM` contracts, plus automated `totalAssets` state tracking, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: ARM direct fee extraction

- **Purpose**: Captures explicit fee payments collected by the ARM vault during its operation.
- **Logic**: Fee amounts are parsed from `FeeCollected` events emitted by `LidoARM` contracts. These events represent direct revenue-generating actions within the vault's redemption and liquidity management logic.
- **Key fields**: `in_fee` (fee amount), `token_address`, `block_timestamp`.

### Component B: ARM strategy yield tracking

- **Purpose**: Calculates the economic value generated by the vault's underlying strategy, such as yield from liquidity positions or rebase adjustments.
- **Logic**: Cumulative totals are maintained for all `Deposit` and `RedeemRequested` events from `LidoARM` contracts to determine net capital flows. These flows are compared against the daily `totalAssets` value captured from contract state. The daily yield is calculated as the change in the difference between total assets and the net cumulative flows (total deposits minus total redemptions). This captures the appreciation of vault assets beyond external capital contributions.
- **Key fields**: `state_value` (total assets), `in_assets` (deposit and redemption amounts), `block_timestamp`.

### Component C: USD conversion and aggregation

- **Purpose**: Normalizes all captured fee and yield components into a common currency for reporting.
- **Logic**: Daily amounts from direct fees and strategy yields are summed and grouped by asset and chain. These values are normalized by decimal precision based on asset metadata and multiplied by end-of-day price feeds. All data is aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `price_usd`, `decimals`, `block_timestamp`.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Liquid staking

github

ARMARM

Fees

Fees

Chain breakdown