# Pendle Yield Tokenization Fees Methodology

## 1. Overview

Fees measures the total value paid by users to Pendle Yield Tokenization, primarily derived from protocol-level deductions on interest and rewards generated by yield-bearing assets. These fees are captured when interest or external rewards are processed by the protocol's Yield Token (YT) contracts. This metric represents the protocol's ability to extract economic value from the yield generated by integrated assets.

## 2. Data sources

- **Blockchain events**: `CollectInterestFee` and `CollectRewardFee` events from `YTv5`, `YTv6`, and `YTv7` contracts, covering Ethereum, Arbitrum, Base, BNB Chain, and 7 other chains
- **External data**: End-of-day price feeds for reward and interest-bearing assets

## 3. Step-by-step calculation

### Component A: Interest fee extraction

- **Purpose**: Capture the protocol's share of yield generated by underlying assets.
- **Logic**: `CollectInterestFee` events are parsed from `YTv5`, `YTv6`, and `YTv7` contracts. The interest fee amount is extracted and adjusted by the daily exchange rate of the corresponding Standardized Yield (SY) asset to ensure the value reflects the underlying asset's quantity.
- **Key fields**: `amountInterestFee` (fee quantity), `sy_address` (asset identification)

### Component B: Reward fee extraction

- **Purpose**: Capture the protocol's share of external incentives and rewards distributed to yield-bearing assets.
- **Logic**: `CollectRewardFee` events are parsed from `YTv5`, `YTv6`, and `YTv7` contracts. The reward fee quantity is extracted for each unique reward asset identified within the transaction.
- **Key fields**: `amountRewardFee` (fee quantity), `rewardToken` (asset identification)

### Component C: Normalization and USD conversion

- **Purpose**: Standardize fee values across different assets and chains for cross-product comparison.
- **Logic**: All extracted fee amounts are normalized by the decimal precision of the respective asset. These values are then multiplied by end-of-day asset prices to calculate the total USD value. Results are aggregated at a daily granularity using UTC day boundaries.

*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 Yield Tokenization

Fees

Fees

Chain breakdown