Liquidity providers deposit funds into Pharaoh and stake their LP tokens to receive PHAR tokens in proportion to their share of the votes (token incentives).

Pharaoh is a non-custodial exchange protocol built on Avalanche. Pharaoh was founded in 2023.

PHAR tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue).

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Pharaoh

# Pharaoh Fees Methodology

## 1. Overview

Fees measures the total value paid by users to trade assets or participate in governance within the Pharaoh ecosystem. This metric includes trading fees generated across various automated market maker (AMM) versions, specifically Legacy Pair, Concentrated Liquidity Pool, and Concentrated Liquidity Pool V3. Additionally, it captures voting incentives paid by participants to influence governance outcomes. Fees are denominated in the underlying assets and converted to USD to reflect the total economic value generated by the protocol.

## 2. Data sources

- **Blockchain events**: `Swap`, `feeChangeV1`, and `PairCreated` events from `LegacyPair`, `PharaohCommandCenter`, and `Factory` contracts; `Swap`, `FeesCollected`, and `VotesIncentivized` events from `Pool`, `FeeCollector`, and `FeeDistributor` contracts; and `PoolCreated`, `FeeAdjustment`, and `Swap` events from `RamsesV3Factory` and `RamsesV3Pool` contracts, covering Avalanche.
- **External data**: End-of-day price feeds for assets.

## 3. Step-by-step calculation

### Component A: Legacy Pair fee extraction

- **Purpose**: To calculate fees generated by trades on V1 AMM pairs.
- **Logic**: Fees are derived by applying a dynamic fee percentage to the input amounts of each swap. Fee percentages are retrieved from `feeChangeV1` events emitted by `PharaohCommandCenter` contracts, which update the rates for specific pair addresses over time. If no adjustment event is present, default rates (0.05% for stable pairs and 0.5% for volatile pairs) are applied based on the pair type identified in `PairCreated` events from `Factory` contracts.
- **Key fields**: `amount0In`, `amount1In`, `fee_percentage`.

### Component B: Concentrated Liquidity Pool fee collection

- **Purpose**: To capture actual fee collections from V2 concentrated liquidity pools.
- **Logic**: Fee data is parsed from `FeesCollected` events emitted by `FeeCollector` contracts. The total fee for each event is calculated by summing the distributed fee amount and the treasury allocation for both assets in the trading pair. This ensures all protocol-level fees, whether distributed to liquidity providers or retained by the treasury, are accounted for.
- **Key fields**: `feeDistAmount0`, `treasuryAmount0`, `feeDistAmount1`, `treasuryAmount1`.

### Component C: Concentrated Liquidity Pool V3 fee estimation

- **Purpose**: To estimate fees generated by trades on V3 concentrated liquidity pools.
- **Logic**: Fees are calculated by multiplying the trading volume of each swap by the applicable pool fee tier. Fee tiers are tracked through `PoolCreated` and `FeeAdjustment` events from `RamsesV3Factory` contracts, ensuring the correct rate is applied based on the transaction timing. Trading volume is derived from `Swap` events from `RamsesV3Pool` contracts.
- **Key fields**: `amount0`, `amount1`, `fee_tier`.

### Component D: Voting incentives

- **Purpose**: To track value paid as incentives to governance participants.
- **Logic**: Incentives are captured from `VotesIncentivized` events emitted by `FeeDistributor` contracts. The asset address and amount are extracted directly from the event parameters to represent the total value distributed to voters for the specified period.
- **Key fields**: `reward` (asset address), `amount`.

### Component E: USD conversion and aggregation

- **Purpose**: To normalize all fee components into a single USD-denominated metric.
- **Logic**: Asset amounts are normalized by decimal precision and multiplied by end-of-day price feeds. For V3 trades, the trading volume is calculated as the minimum USD value between the two assets in a swap to filter out potential price manipulation. A continuous price series is maintained for the PHAR asset by transitioning between price feeds on October 9, 2025, to account for a 5000:1 token split. All components are aggregated by day and chain to produce the final metric.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

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