# ARM Revenue Methodology

## 1. Overview

Revenue measures the portion of yield and fees generated by the ARM (Automated Reward Manager) strategy that is retained by the protocol. ARM utilizes an ERC-4626 compatible structure to manage liquid staking assets, specifically focused on optimizing yield for staked ETH. Revenue is derived from both explicit protocol fee collection events and the change in total assets relative to net deposit and withdrawal flows.

## 2. Data sources

- **Blockchain events**: `Deposit`, `RedeemRequested`, `FeeCollected`, and `FeeUpdated` events from `LidoARM` contracts, along with `total_assets` state snapshots, covering Ethereum
- **External data**: End-of-day price feeds for relevant staking assets and native gas assets

## 3. Step-by-step calculation

### Component A: Direct fee extraction

- **Purpose**: Capture protocol fees explicitly collected by the ARM strategy.
- **Logic**: `FeeCollected` events are parsed from `LidoARM` contracts. The fee amount is extracted from the transaction data and categorized as protocol revenue.
- **Key fields**: `amount` representing the raw fee quantity collected.

### Component B: Yield-based revenue calculation

- **Purpose**: Determine revenue generated through the appreciation of strategy assets.
- **Logic**: Daily `total_assets` values are retrieved from state snapshots of `LidoARM` contracts. A net flow balance is maintained by aggregating `Deposit` and `RedeemRequested` events. The daily revenue is calculated as the change in total assets after adjusting for these cumulative deposits and withdrawals, effectively capturing the rebase yield and strategy performance.
- **Key fields**: `state_value` (total assets), `in_assets` (deposits and withdrawals).

### Component C: Normalization and USD conversion

- **Purpose**: Standardize revenue values for cross-asset comparison and reporting.
- **Logic**: Protocol fee rates are tracked via `FeeUpdated` events from `LidoARM` contracts to ensure accurate attribution. Revenue amounts are normalized by asset-specific decimal precision. Normalized values are multiplied by end-of-day price feeds to determine the USD value. All data is aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `protocol_fee_rate`, `block_timestamp` (timing).

*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.

ARMARM

Revenue

Revenue

Chain breakdown