# Pendle Limit Order Revenue Methodology

## 1. Overview

Revenue for Pendle Limit Order is defined as the portion of transaction fees retained by the protocol from limit order trades. The earnings generated from limit order executions before operating expenses are represented by this metric. While fees from Pendle AMM are split with supply-side participants, 100% of the fees generated by Pendle Limit Order trades are retained as protocol revenue. Collected fees are normalized to their underlying base assets and converted to USD.

## 2. Data sources

- **Blockchain events**: `OrderFilledV2` events from `LimitRouter` contracts, `Deposit` events from `SYv2`, `SYv3`, `SYv4`, `SYv5`, `SYv6`, and `SYv7` contracts, and `CreateYieldContract` events from `YieldContractFactoryV2`, `YieldContractFactoryV3`, `YieldContractFactoryV4`, `YieldContractFactoryV5`, `YieldContractFactoryV6`, and `YieldContractFactoryV7` 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: Limit order trade fee extraction

- **Purpose**: Extract raw fee amounts and trade volumes from limit order executions.
- **Logic**: `OrderFilledV2` events from `LimitRouter` contracts are parsed. Yield Token (YT) addresses from the trade events are mapped to Principal Token (PT) addresses, which are further mapped to Standardized Yield (SY) asset addresses and underlying asset addresses using contract deployment metadata. The raw fee amount is extracted and multiplied by the standardized yield conversion rate to align with the underlying asset's decimal precision. For specific Bitcoin-related standardized yield assets on Berachain and Base, as well as specific assets on Monad, custom scaling factors are applied to the volume and fee amounts to correct for decimal discrepancies. The fee amounts are then normalized by the decimal precision of the underlying asset.
- **Key fields**: `block_timestamp`, `transaction_hash`, `YT`, `notionalVolume`, `feeAmount`

### Component B: Standardized yield price ratio calculation

- **Purpose**: Determine the exchange ratio between base assets and standardized yield (SY) assets.
- **Logic**: `Deposit` events from `SYv2`, `SYv3`, `SYv4`, `SYv5`, `SYv6`, and `SYv7` contracts are parsed to track base asset deposits and corresponding SY asset outputs. Denylisted base assets (where the deposit amount equals the SY output amount) are excluded to prevent price distortion. The daily ratio of base asset deposits to SY assets is calculated for each market. A fill-forward mechanism is applied to carry over the last known ratio for days without deposit activity, ensuring continuous price coverage.
- **Key fields**: `amountDeposited`, `amountSyOut`, `address`

### Component C: Revenue calculation and USD conversion

- **Purpose**: Calculate the final protocol revenue in USD.
- **Logic**: The normalized fee amounts from limit order trades are multiplied by the corresponding standardized yield price ratio to determine the fee value in terms of the underlying base asset. Because 100% of the fees generated by Pendle Limit Order are retained by the protocol, no supply-side deduction is applied. The resulting base asset revenue is multiplied by end-of-day asset prices to convert the values to USD. Daily revenue is aggregated by chain and timestamp using UTC day boundaries.
- **Key fields**: `fee_amount`, `ratio`, `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 Limit Order

Revenue

Revenue

Chain breakdown