# vePendle Fees Methodology

## 1. Overview

Fees for vePendle are calculated as the economic value collected by the protocol and designated for distribution to vePendle holders. These fees are generated from protocol-wide activities, including swap fees from liquidity pools and yield-based commissions from yield tokenization products. The total yield potential for users who lock their Pendle assets to participate in protocol governance is represented by this metric.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events to specific protocol distributor addresses, covering Ethereum, Arbitrum, Base, Berachain, and 6 other chains
- **External data**: End-of-day price feeds for underlying assets and Standardized Yield (SY) exchange rates

## 3. Step-by-step calculation

### Component A: Distributor transfer identification

- **Purpose**: Identify asset transfers designated for vePendle distribution.
- **Logic**: ERC-20 `Transfer` events are monitored where the recipient is the designated vePendle distributor address. Transfers of USDT are specifically excluded from these distributor-based records to prevent the double-counting of primary protocol fees. Data is captured across all supported chains to ensure comprehensive coverage of distributed value.
- **Key fields**: `to_address` (distributor identification), `token_address` (asset identification), `value` (transfer quantity)

### Component B: Standardized Yield (SY) asset valuation

- **Purpose**: Accurately value transfers involving Standardized Yield assets.
- **Logic**: Transfers are cross-referenced with asset metadata to identify Standardized Yield (SY) assets. For these assets, the transfer volume is multiplied by the corresponding daily SY-to-underlying exchange rate. Through this process, the value of interest-bearing yield assets is converted into equivalent underlying asset quantities for standardized reporting.
- **Key fields**: `sy_address`, `sy_exchange_rate`, `underlying_address`

### Component C: USD conversion and final aggregation

- **Purpose**: Standardize all fee values into USD and aggregate by day.
- **Logic**: All identified fee amounts are normalized by their respective decimal precision. The resulting quantities are multiplied by end-of-day asset price feeds to determine the USD value. The data is then aggregated by day and chain, applying a UTC day boundary and zero-filling any dates without recorded activity.
- **Key fields**: `block_timestamp`, `token_address`, `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).

vePendle

Fees

Fees

Chain breakdown