Users deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

PENDLE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Pendle

# Pendle Fees Methodology

## 1. Overview

Fees measures the total fee revenue generated across the Pendle protocol's various products and services. Fees are captured from automated market maker (AMM) trading, limit order trading, yield tokenization services, protocol revenue distributions, and Boros derivatives trading. Fee-generating events are aggregated from multiple blockchain networks and converted to standardized USD values using end-of-day pricing data. The question of how much total fee revenue is generated daily across all products and supported chains is answered by this metric. Fee events are collected from different protocol components, proper asset conversions and decimal normalizations are applied, and daily totals are aggregated.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Market` contracts (MarketV2-V7), `OrderFilledV2` events from `LimitRouter` contracts, `CollectInterestFee` and `CollectRewardFee` events from `YT` contracts (YTv5-V7), ERC-20 `Transfer` events to treasury and distributor addresses, `Deposit` events from `SY` contracts (SYv2-V7), and `MarketOrdersFilled`, `SwapWithAmm`, `SingleOrderExecuted`, `PaymentFromSettlement`, `Liquidate`, and `OtcSwap` events from Boros contracts, covering Ethereum, Arbitrum, Base, BSC, and 8 other chains
- **External data**: End-of-day price feeds, daily SY asset exchange rates, and asset metadata

## 3. Step-by-step calculation

### Component A: Pendle AMM trading fees

- **Purpose**: Fees generated from automated market maker swaps on Pendle markets are captured.
- **Logic**: Fee amounts are extracted from `Swap` events from `Market` contracts using the `netSyFee` field. Market dimension tables are joined to map market addresses to Principal Token (PT) assets. Standardized Yield (SY) asset conversion rates are applied to convert SY asset fee amounts to underlying asset equivalents. Special decimal scaling is handled for BTC markets on Berachain, Base, and Monad, where amounts are normalized by decimal precision. Asset mappings are joined to identify underlying asset addresses, and proper decimal normalization is applied.
- **Key fields**: `netSyFee` (raw fee amount in SY assets), `market_address` (market contract), `pt_address` (principal token identifier)

### Component B: Pendle Limit Order trading fees

- **Purpose**: Fees from limit order executions on Pendle markets are captured.
- **Logic**: Fee amounts are extracted from `OrderFilledV2` events from `LimitRouter` contracts using the `feeAmount` field. Yield Token (YT) assets are mapped to PT assets through base asset dimensions. The same SY conversion rate logic and decimal adjustments are applied as in AMM trades. Notional volume and fee amounts are converted and normalized by decimal precision using chain-specific scaling factors for BTC and other special assets.
- **Key fields**: `feeAmount` (raw fee amount), `YT` (yield token address), `notionalVolume` (trade size for reference)

### Component C: Pendle Yield Tokenization fees

- **Purpose**: Fees from Pendle's core yield tokenization service where yield-bearing assets are split into Principal and Yield tokens are collected.
- **Logic**: Two fee types are processed separately. For interest fees, `amountInterestFee` is extracted from `CollectInterestFee` events from `YT` contracts, SY conversion rates are applied, and amounts are normalized by decimal precision. For reward fees, `amountRewardFee` is extracted from `CollectRewardFee` events from `YT` contracts, and standard decimal normalization is applied without SY conversion. YT contract addresses are mapped to underlying asset addresses using asset mapping dimensions.
- **Key fields**: `amountInterestFee` (interest-based fees), `amountRewardFee` (reward asset fees), `rewardToken` (specific reward asset address)

### Component D: vePendle revenue distribution

- **Purpose**: Protocol-level revenue flowing to the vePendle asset staking distributor is captured.
- **Logic**: Asset transfers to Pendle treasury addresses and the vePendle distributor address are identified across all supported chains. Transfers to the specific vePendle recipient address `0x3942f7b55094250644cffda7160226caa349a38e` are filtered. USDT transfers are excluded to prevent double-counting of primary fees that are distributed through the airdrop distributor. SY asset conversion rates are applied when transfers involve SY assets. Cross-chain SY asset mappings are handled where some SY assets reference Ethereum underlying assets.
- **Key fields**: `value` (transfer amount), `token_address` (transferred asset), `to_address` (recipient address for filtering)

### Component E: Boros derivatives fees

- **Purpose**: Fees from Boros, Pendle's derivatives trading platform, are aggregated.
- **Logic**: Fee amounts are collected from six different Boros event types: market order fills, AMM swaps with Boros router, single order executions, settlement payments, liquidations, and OTC swaps. For market order fills, bit manipulation is applied to extract the upper 128 bits from packed trade data, and signed value conversion is handled. All fee amounts are normalized by decimal precision. Market addresses are mapped to underlying asset addresses using Boros market dimensions. This component is currently operated only on the Arbitrum network.
- **Key fields**: `totalFees` (market orders), `otcFee` (various swap types), `liqFee` (liquidations), `fees` (settlements)

### Component F: Standardized Yield asset conversion system

- **Purpose**: Exchange rates to convert Standardized Yield (SY) asset amounts to underlying asset equivalents are provided.
- **Logic**: Conversion ratios are calculated from SY `Deposit` events by dividing base asset deposit amounts by SY asset output amounts. Denylisted assets where the deposit amount equals the SY output (indicating 1:1 base asset scenarios that would create pricing inaccuracies) are filtered out. Daily ratios are aggregated per market, and forward-filling is applied to ensure consistent ratios for each day. A single consistent SY ratio per market per day is selected when multiple ratios exist.
- **Key fields**: `amountDeposited` (base asset amount), `amountSyOut` (SY asset amount), `ratio` (calculated conversion rate)

### Component G: USD conversion and aggregation

- **Purpose**: Fee components are combined and normalized to USD.
- **Logic**: All fee components are unioned using consistent daily timestamp truncation, chain identification, and product classification. Proper asset address mapping and decimal normalization are applied to each component. The `convert_to_usd_and_correct_decimals` macro is applied using end-of-day price feeds to handle both USD conversion and final decimal corrections across different asset standards and chains. All timestamps are truncated to daily boundaries and grouped by day, chain, and product dimensions. Fee amounts are summed within each group to obtain daily totals per product line. The `finalize_metric_fees` macro is applied with a zero-filling strategy to ensure continuous time series data, filling missing dates with zero values and applying standard metric formatting for the final Pendle fees output.

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

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

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Fees

Fees

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