# vePendle Revenue Methodology

## 1. Overview

The portion of fees that is retained by the protocol and distributed to locked asset holders is measured by vePendle Revenue. Earnings generated by the protocol are reflected by this metric, which are allocated to vePendle participants with locked Pendle assets. Revenue is accumulated from protocol fees and routed to designated fee distributor contracts. The protocol's earnings before operating expenses and token incentives are represented by the tracked revenue.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers to vePendle fee distributor contracts, covering Ethereum, Arbitrum, Base, BNB Chain, and 6 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Fee distribution tracking

- **Purpose**: Fee transfers routed to vePendle distributors are identified and extracted.
- **Logic**: ERC-20 token transfers are filtered based on a match between the recipient address and the designated vePendle fee distributor contracts. To prevent double-counting of primary fees, transfers of USDT are explicitly excluded from the distributor address tracking.
- **Key fields**: `block_timestamp`, `token_address`, `to_address`, `value`

### Component B: Standardized Yield asset normalization

- **Purpose**: Standardized Yield (SY) asset values are normalized to their underlying asset equivalents.
- **Logic**: For transfers involving SY assets, the token addresses are mapped to their corresponding underlying assets using protocol token mapping metadata. The transfer values are multiplied by the daily exchange rate of the SY asset to determine the equivalent amount of the underlying asset.
- **Key fields**: `sy_address`, `underlying_address`, `rate`

### Component C: USD conversion and aggregation

- **Purpose**: Normalized fee amounts are converted to USD and aggregated.
- **Logic**: Normalized underlying asset amounts are adjusted by their decimal precision. The adjusted amounts are multiplied by end-of-day asset prices to calculate the USD value. The daily revenue is aggregated by timestamp, chain, and the vePendle product identifier.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `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).

vePendle

Revenue

Revenue

Chain breakdown