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 Supply-side fees Methodology

## 1. Overview

The portion of total fees generated by the Pendle protocol that flows to liquidity providers and yield suppliers rather than to the protocol treasury is measured by supply-side fees. The value captured by users who provide liquidity to Pendle's markets and yield tokenization infrastructure is quantified by this metric. A residual approach is utilized for the calculation: Supply-side fees = Total Fees - Protocol Revenue, where varying revenue allocation percentages are applied to different fee sources.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Market` contracts, `OrderFilledV2` events from `LimitRouter` contracts, `CollectInterestFee` and `CollectRewardFee` events from `YT` contracts, `CreateNewMarket` events from `MarketFactory` contracts, `CreateYieldContract` events from `YieldContractFactory` contracts, `Deposit` events from `SY` contracts, ERC-20 `Transfer` events to treasury and distributor addresses, and Boros market events (including `MarketOrdersFilled`, `OtcSwap`, `Liquidate`, `SwapWithAmm`, and `PaymentFromSettlement` events), covering Ethereum, Arbitrum, Base, BNB Chain, and 8 other chains
- **External data**: End-of-day asset price feeds, asset metadata (decimal precision and address mapping), and daily exchange rates between SY assets and their underlying assets from Pendle's state API

## 3. Step-by-step calculation

### Component A: Total fees calculation

- **Purpose**: All fees generated across the Pendle ecosystem are aggregated.
- **Logic**: Fees are collected from five main sources: AMM trading fees from `Swap` events on `Market` contracts (representing Pendle AMM), limit order fees from `OrderFilledV2` events (representing Pendle Limit Order), yield tokenization fees from `CollectInterestFee` and `CollectRewardFee` events on `YT` contracts (representing Pendle Yield Tokenization), treasury revenue from token transfers to specific addresses, and Boros fees from various trading activities. For AMM and limit order fees, raw `netSyFee` or `feeAmount` values are multiplied by SY asset conversion ratios derived from deposit events to normalize amounts to underlying asset values. Decimal corrections are applied for BTC-based assets (normalized by decimal precision for Base, Berachain, Ethereum, and Monad) and all amounts are converted to USD using end-of-day price feeds.
- **Key fields**: `netSyFee` from swap events, `feeAmount` from limit orders, `amountInterestFee` and `amountRewardFee` from YT contracts, transfer `value` to treasury addresses, various fee fields from Boros events

### Component B: Protocol revenue calculation

- **Purpose**: The portion of total fees that flows to the protocol treasury is determined.
- **Logic**: The same fee sources as total fees are utilized, but revenue allocation percentages are applied. For AMM trading fees, a multiplier of 0.8 is applied, representing the protocol's 80% share. For limit order fees, yield tokenization fees, and treasury transfers, 100% is allocated as protocol revenue. All Boros fees are also included as 100% protocol revenue. The same SY asset conversion ratios, decimal corrections, and USD conversions are applied as in the total fees calculation.
- **Key fields**: Same fee fields as Component A but with allocation multipliers applied

### Component C: SY asset conversion rates

- **Purpose**: SY asset amounts are converted to underlying asset equivalents for accurate fee calculation.
- **Logic**: `Deposit` events on `SY` contracts are analyzed to calculate daily conversion ratios between deposited base assets and minted SY assets. The ratio of `amountDeposited` to `amountSyOut` is used to determine the underlying asset value of each SY asset. Denylist filtering is applied to exclude assets where the deposit ratio equals 1:1 (indicating base assets). Missing daily ratios are forward-filled, and one primary ratio per market is selected using row numbering.
- **Key fields**: `amountDeposited`, `amountSyOut`, `tokenIn` from SY deposit events

### Component D: Cross-chain fee aggregation

- **Purpose**: Fees from all supported blockchain networks are combined.
- **Logic**: Fee data is unioned across all supported blockchain networks. Chain-specific filtering and asset address mappings are applied. Cross-chain SY assets are handled by mapping them to their underlying assets on the appropriate chain (for example, certain Arbitrum SY assets are mapped to Ethereum underlying assets).
- **Key fields**: `chain` identifier, network-specific contract addresses and event schemas

### Component E: Final aggregation and USD conversion

- **Purpose**: Supply-side fees are calculated and normalized to USD.
- **Logic**: Supply-side fees are calculated by subtracting protocol revenue from total fees for each day, chain, and product combination. The positive fees component is unioned with the negative revenue component, and then summed by timestamp, chain, and product. All fee amounts are converted to USD using end-of-day asset prices, with proper decimal normalization applied based on asset precision. All fee events are aggregated by day using daily boundaries to ensure consistent temporal grouping across all fee sources. The net amount flowing to liquidity providers and yield suppliers rather than the protocol treasury is captured by the final supply-side fees.

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

Portion of fees distributed to service providers or supply-side participants.

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Supply-side fees

Supply-side fees

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