# Pendle Yield Tokenization Revenue Methodology

## 1. Overview

Revenue for Pendle Yield Tokenization is measured as the portion of yield-related fees retained by the protocol from yield-bearing assets. Fees are collected from interest accrued on Yield Tokens (YT) and from external rewards distributed to YT holders. This metric is used to highlight the protocol's capacity to monetize yield-tokenization strategies across various yield-generating platforms. All revenue values are converted to USD using end-of-day price feeds.

## 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 underlying assets and reward assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Interest fee extraction

- **Purpose**: Extract fees collected from interest accrued on Yield Tokens (YT)
- **Logic**: `CollectInterestFee` events are parsed from `YTv5`, `YTv6`, and `YTv7` contracts. The raw interest fee amount is extracted from the `amountInterestFee` field. The Yield Token address is mapped to its corresponding standardized yield (SY) asset and underlying asset using protocol token mapping metadata. The raw interest fee is multiplied by the daily exchange rate of the standardized yield asset to determine the fee in terms of the underlying asset.
- **Key fields**: `amountInterestFee` (raw interest fee), `address` (Yield Token contract address)

### Component B: Reward fee extraction

- **Purpose**: Extract fees collected from external rewards distributed to Yield Token (YT) holders
- **Logic**: `CollectRewardFee` events are parsed from `YTv5`, `YTv6`, and `YTv7` contracts. The reward fee amount is extracted from the `amountRewardFee` field, and the reward asset is identified using the `rewardToken` field.
- **Key fields**: `amountRewardFee` (raw reward fee), `rewardToken` (reward asset address)

### Component C: Normalization and USD conversion

- **Purpose**: Normalize fee amounts by decimal precision and convert them to USD
- **Logic**: Interest fees and reward fees are normalized by the decimal precision of their respective underlying or reward assets. Normalized asset amounts are multiplied by end-of-day asset prices to calculate the USD value. Daily revenue is aggregated by summing the USD values of interest fees and reward fees across all supported chains. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `timestamp` (timing), `revenue` (USD-denominated revenue)

*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 Yield Tokenization

Revenue

Revenue

Chain breakdown