# Pendle AMM Revenue Methodology

## 1. Overview

Revenue for Pendle AMM is measured as the portion of swap fees retained by the protocol from trading activity within its liquidity pools. This metric reflects the earnings generated by the protocol's automated market maker (AMM) before the distribution of incentives or operating expenses. An 80% take rate is applied to the total swap fees collected from AMM trades, while the remaining portion is distributed to liquidity providers. All values are converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Market` contracts (versions V2, V3, V4, V5, V6, and V7), `CreateNewMarket` events from `MarketFactory` contracts (versions V2, V3, V4, V5, V6, and V7), `Deposit` events from `SY` contracts (versions V2, V3, V4, V5, V6, and V7), and `CreateYieldContract` events from `YieldContractFactory` contracts (versions V2, V3, V4, V5, V6, and V7), covering Ethereum, Arbitrum, Base, BSC, and 8 other chains
- **External data**: End-of-day price feeds for underlying assets

## 3. Step-by-step calculation

### Component A: Pendle AMM market and asset mapping

- **Purpose**: Map AMM market contracts to their corresponding Principal Tokens (PT), Yield Tokens (YT), Standardized Yield (SY) assets, and underlying assets.
- **Logic**: `CreateNewMarket` events from `MarketFactory` contracts are parsed to identify active AMM markets and their associated PT assets. These are joined with `CreateYieldContract` events from `YieldContractFactory` contracts to map PT assets to their corresponding YT and SY assets. Finally, the SY assets are mapped to their underlying assets and decimal configurations using asset mapping metadata.
- **Key fields**: `market_address`, `pt_address`, `yt_address`, `sy_address`, `underlying_address`

### Component B: Pendle AMM standardized yield pricing and ratio calculation

- **Purpose**: Determine the conversion ratio between base assets and SY assets to ensure accurate pricing.
- **Logic**: `Deposit` events from `SY` contracts are parsed to extract the deposited base asset amount and the resulting SY asset amount. A daily conversion ratio is calculated by dividing the total base asset deposit amount by the total SY asset amount. To prevent distortion, deposits where the base asset amount equals the SY asset amount are excluded using a denylist. For days without active deposits, the ratio is filled forward from the most recent available day.
- **Key fields**: `base_amount`, `sy_amount`, `ratio`

### Component C: Pendle AMM swap fee extraction

- **Purpose**: Extract and normalize swap fees collected from AMM trading activity.
- **Logic**: `Swap` events from `Market` contracts are parsed to extract the raw swap fee amount from the `netSyFee` field. This raw fee is multiplied by the daily SY exchange rate to convert the fee into the underlying asset's terms. The fee amount is then normalized by the decimal precision of the underlying asset. For specific Bitcoin-pegged SY assets on Berachain, Base, and Monad, additional decimal scaling adjustments are applied to align with the underlying asset precision.
- **Key fields**: `fee_amount`, `rate`

### Component D: Pendle AMM revenue calculation and USD conversion

- **Purpose**: Apply the protocol take rate and convert the final revenue to USD.
- **Logic**: Protocol revenue is calculated by applying an 80% take rate to the normalized swap fee amount. The resulting revenue values are multiplied by end-of-day price feeds of the underlying assets to convert them to USD. Daily values are aggregated with UTC day boundaries, and any missing days are filled with zeros.
- **Key fields**: `revenue`, `price_usd`

*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.

Revenue

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

Revenue

Revenue

Chain breakdown