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 Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that is retained by Pendle, representing the protocol's earnings before operating expenses and token incentives. The protocol's share of fees is captured across its core products, including Pendle AMM, Pendle Limit Order, Pendle Yield Tokenization, vePendle, and Boros. These earnings are derived from swap fees, interest fees, reward fees, and treasury transfers, which are ultimately distributed to vePendle holders and the protocol treasury. Insight into the protocol's financial sustainability and the value captured by its governance participants is provided through revenue tracking.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Market` contracts; `OrderFilledV2` events from `LimitRouter` contracts; `CollectInterestFee` and `CollectRewardFee` events from `YT` contracts; ERC-20 token transfers to treasury and distributor addresses; `Deposit` events from `SY` contracts; `PaymentFromSettlement`, `Liquidate`, `MarketOrdersFilled`, and `OtcSwap` events from `BorosMarket` contracts; and `SwapWithAmm` and `SingleOrderExecuted` events from `BorosRouter` contracts, covering Ethereum, Arbitrum, Base, Berachain, and 8 other chains
- **External data**: End-of-day price feeds for underlying assets and asset metadata

## 3. Step-by-step calculation

### Component A: Pendle AMM fee collection

- **Purpose**: Capture fees generated from swaps on the Pendle AMM
- **Logic**: `Swap` events are parsed from `Market` contracts (versions V2, V3, V4, V5, V6, and V7). The net SY fee amount (`netSyFee`) is extracted from each event. To convert this fee to the underlying asset, the fee amount is multiplied by the daily exchange rate of the corresponding SY asset, which is derived from `Deposit` events in `SY` contracts. The fee is then normalized by decimal precision. Since an 80% take rate is retained by the protocol on AMM swap fees, the final revenue is calculated as 80% of the total fee amount.
- **Key fields**: `netSyFee`, `market_address`, `pt_address`, `block_timestamp`

### Component B: Pendle Limit Order fee collection

- **Purpose**: Capture fees generated from filled limit orders
- **Logic**: `OrderFilledV2` events are parsed from `LimitRouter` contracts. The fee amount (`feeAmount`) is extracted and multiplied by the daily SY conversion rate to convert it to the underlying asset. The fee is then normalized by decimal precision. Unlike the AMM, 100% of the limit order fee is retained as protocol revenue.
- **Key fields**: `feeAmount`, `YT` address, `block_timestamp`

### Component C: Pendle Yield Tokenization fee collection

- **Purpose**: Capture interest and reward fees collected from yield-bearing assets
- **Logic**: `CollectInterestFee` and `CollectRewardFee` events are parsed from `YT` contracts (versions V5, V6, and V7). For interest fees, the collected interest fee amount (`amountInterestFee`) is multiplied by the daily SY conversion rate and normalized by decimal precision. For reward fees, the collected reward fee amount (`amountRewardFee`) is normalized by the decimal precision of the reward asset. Both fee types are fully retained as protocol revenue.
- **Key fields**: `amountInterestFee`, `amountRewardFee`, `rewardToken`, `block_timestamp`

### Component D: vePendle treasury and distributor transfers

- **Purpose**: Capture other protocol fees and revenues distributed to vePendle holders and the treasury
- **Logic**: ERC-20 token transfers are parsed where the recipient is either the protocol treasury address or the airdrop distributor address. To avoid double-counting primary fees that are distributed in USDT, all USDT transfers to these addresses are excluded. For transfers of SY assets, the transfer value is multiplied by the daily SY conversion rate to determine the underlying asset value.
- **Key fields**: `value`, `token_address`, `to_address`, `from_address`, `block_timestamp`

### Component E: Boros fee collection

- **Purpose**: Capture fees generated from the Boros margin trading protocol
- **Logic**: Events are parsed from Boros contracts. These include `MarketOrdersFilled`, `PaymentFromSettlement`, `Liquidate`, and `OtcSwap` events from `BorosMarket` contracts, as well as `SwapWithAmm` and `SingleOrderExecuted` events from `BorosRouter` contracts. Fee amounts are extracted from each event, normalized by decimal precision, and converted to USD. All collected Boros fees are treated as protocol revenue.
- **Key fields**: `fee_amount`, `token_address`, `block_timestamp`

### Component F: USD conversion and aggregation

- **Purpose**: Normalize all revenue components to USD and aggregate them
- **Logic**: All calculated revenue amounts are normalized by their respective asset decimal precisions. The normalized amounts are then multiplied by the end-of-day USD price of the underlying asset. The USD values are aggregated daily across all products and chains using UTC day boundaries.
- **Key fields**: `revenue`, `price_usd`, `timestamp`

*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.

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Revenue

Revenue

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