# Pendle Limit Order Fees Methodology

## 1. Overview

Fees measures the total value paid by users when executing trades through Pendle Limit Order. These fees are collected during the fulfillment of limit orders for various yield-bearing assets and provide compensation for the protocol's facilitate of peer-to-peer yield trading. Fees are typically denominated in standardized yield (SY) assets or their underlying tokens and are converted to USD for standardized reporting.

## 2. Data sources

- **Blockchain events**: `OrderFilledV2` events from `LimitRouter` contracts, and `Deposit` events from `SYv2`, `SYv3`, `SYv4`, `SYv5`, `SYv6`, and `SYv7` contracts, 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: Limit order fee extraction

- **Purpose**: Identify and extract raw fee amounts from fulfilled limit orders.
- **Logic**: `OrderFilledV2` events are parsed from `LimitRouter` contracts. For each event, the fee amount and the associated yield token are identified. Specific scaling adjustments are applied to assets with non-standard precision, such as certain Bitcoin-related assets on Berachain, Base, and Ethereum, to ensure volume and fee data are correctly aligned with the protocol's 18-decimal internal representation.
- **Key fields**: `in_feeAmount`, `in_YT`, `in_notionalVolume`

### Component B: Standardized Yield (SY) conversion ratio

- **Purpose**: Calculate the exchange rate between yield-bearing tokens and their underlying assets to ensure accurate valuation.
- **Logic**: `Deposit` events are captured from standardized yield contracts, ranging from `SYv2` to `SYv7`. A conversion ratio is derived by dividing the total amount of base assets deposited by the resulting standardized yield tokens minted. This ratio is calculated on a daily basis and is filled forward for days with no deposit activity to maintain a continuous price feed for yield-bearing assets.
- **Key fields**: `in_amountDeposited`, `in_amountSyOut`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize all collected fees into a final USD value and aggregate by day.
- **Logic**: Extracted fee amounts are multiplied by the corresponding daily standardized yield ratio to represent the fee value in terms of the underlying asset. These values are then normalized by the specific decimal precision of the asset and multiplied by end-of-day price feeds. The final values are aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `fee_amount`, `ratio`, `price_usd`

*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 Limit Order

Fees

Fees

Chain breakdown