# Pendle AMM Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute swaps within Pendle AMM liquidity pools. These fees are collected in Standardized Yield (SY) assets, representing the cost of liquidity and protocol usage. This metric is used to quantify the economic value generated by the automated market maker across various yield-bearing asset markets.

## 2. Data sources

- **Blockchain events**: `Swap` events from `MarketV2`, `MarketV3`, `MarketV4`, `MarketV5`, `MarketV6`, and `MarketV7` contracts, plus `Deposit` events from `SYv2`, `SYv3`, `SYv4`, `SYv5`, `SYv6`, and `SYv7` contracts, covering Ethereum, Arbitrum, Base, BNB Chain, and 8 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Swap fee extraction

- **Purpose**: Capture the raw fee amounts generated from Pendle AMM trading activity.
- **Logic**: `Swap` events are parsed from versioned `Market` contracts. The fee amount is extracted from the `netSyFee` field, representing the fee denominated in Standardized Yield assets. Data is filtered to ensure uniqueness across transaction hashes and log indices.
- **Key fields**: `netSyFee` (fee amount), `market_address` (identification of the specific liquidity pool)

### Component B: Standardized Yield price ratio calculation

- **Purpose**: Determine the conversion factor between Standardized Yield assets and their underlying assets.
- **Logic**: `Deposit` events are analyzed from versioned `SY` contracts to establish the relationship between the quantity of base assets deposited and the quantity of SY assets minted. A daily ratio is calculated for each market. For days without active deposit events, the ratio from the most recent available day is filled forward to maintain data continuity.
- **Key fields**: `amountDeposited` (base asset quantity), `amountSyOut` (yield asset quantity)

### Component C: USD conversion and normalization

- **Purpose**: Normalize fee values by decimal precision and convert them to a common currency.
- **Logic**: The extracted swap fee amounts are multiplied by the calculated SY-to-asset ratio. These values are then normalized by the decimal precision of the underlying asset. The resulting amounts are multiplied by end-of-day price feeds for the respective assets. Daily totals are aggregated by chain to produce the final metric.

*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

Exchanges (DEX)

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).

Pendle AMM

Fees

Fees

Chain breakdown