Liquidity providers deposit funds into Pika Protocol and receive trading fees from traders (supply-side fees).

Pika Protocol is a non-custodial exchange for perpetual contracts built on Optimism. Pika Protocol was founded by an anonymous team and was launched in 2021.

PIKA tokenholders own and govern the protocol. Pika Protocol has no private investors.

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Pika Protocol

# Pika Protocol Revenue Methodology

## 1. Overview

PikaProtocol revenue represents the protocol's share of fees generated from perpetual futures trading and liquidation activities on the Optimism blockchain. The metric calculates daily revenue by combining trading fees from position opens/closes with liquidation penalties, then applying a 50% revenue share to determine the protocol's portion versus supply-side earnings. This metric answers how much revenue PikaProtocol generates from its derivatives trading services, capturing both regular trading activity and liquidation events.

## 2. Data sources

The calculation relies on several key data sources:

- **Blockchain events**: Parsed Optimism event logs from PikaProtocol's perpetual trading contracts across multiple versions (v2, v3, v4)
- **Trading events**: `PikaPerp_NewPosition_event` and `PikaPerp_ClosePosition_event` logs containing fee information from position creation and closure
- **Liquidation events**: `PikaPerp_PositionLiquidated_event` logs containing liquidation reward and penalty information
- **External data**: End-of-day price feeds for USD conversion and USDC token metadata
- **Configuration data**: Hardcoded revenue percentage splits and protocol version information

## 3. Step-by-step calculation

### Component A: Perpetual trading fees extraction
- **Purpose**: Captures fees generated from opening and closing perpetual futures positions
- **Logic**: Extracts fee data from `PikaPerp_NewPosition_event` and `PikaPerp_ClosePosition_event` logs across PikaProtocol versions v2, v3, and v4 on Optimism. Filters for distinct events based on transaction hash and log index to avoid duplicates. Converts the `fee` field from 8 decimal places to standard USDC units by dividing by 10^8. All fees are natively denominated in USDC using contract address `0x7f5c764cbc14f9669b88837ca1490cca17c31607`
- **Key fields**: `fee` (fee amount in 8 decimals), `block_timestamp` (event timing), `address` (contract address), transaction and log identifiers for deduplication

### Component B: Liquidation fees extraction  
- **Purpose**: Captures fees generated from position liquidations and penalties
- **Logic**: Extracts liquidation data from `PikaPerp_PositionLiquidated_event` logs across PikaProtocol versions v2 and v3 on Optimism. Sums the `remainingReward` and `liquidatorReward` fields from each liquidation event to capture total liquidation-related fees. Converts the combined amount from 8 decimal places to standard USDC units. Filters for distinct events to prevent double-counting
- **Key fields**: `remainingReward` and `liquidatorReward` (liquidation fee components in 8 decimals), `block_timestamp`, event identifiers

### Component C: Revenue percentage application
- **Purpose**: Applies protocol revenue share split to determine PikaProtocol's portion of total fees
- **Logic**: Joins both trading and liquidation fees with a revenue percentage configuration that sets the protocol's share at 50% starting from January 22, 2022 (the first day PikaProtocol generated fees). Uses a forward-fill strategy to extend this 50% rate to all subsequent days. Multiplies the fee amounts by the revenue percentage to calculate the protocol's revenue portion
- **Key fields**: `revenue_percentage` (50% rate), `timestamp` (daily boundaries for percentage application)

### Final aggregation
- **Combining components**: Unions the revenue-adjusted trading fees and liquidation fees into a single dataset using UNION ALL, maintaining separate records for each fee type while applying consistent daily timestamp truncation
- **Currency conversion**: Converts USDC amounts to USD using end-of-day price feeds through the convert_to_usd_and_correct_decimals macro, with decimal correction disabled since amounts are already in standard units
- **Time aggregation**: Aggregates all fees to daily boundaries using timestamp truncation, grouping by day, chain, business classifications, and token information
- **Final calculation**: Applies standardized metric finalization with zero-filling strategy for missing days and chain availability filtering to ensure consistent daily revenue reporting across PikaProtocol's operational period

*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.

Pika ProtocolPIKA

Revenue

Revenue

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