# Polymarket Combos Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that is retained by the project, as determined by its take rate. For Polymarket Combos, this metric represents the gross fees generated by the product, as no supply-side fees or taker rebates are distributed to supply-side participants for this product. This metric is utilized to evaluate the direct earnings generated by the Polymarket Combos product before operating expenses and other costs are deducted.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events of the `pUSD` asset from the Polymarket Combos exchange contract to V2 fee recipient contracts, covering Polygon
- **External data**: End-of-day price feeds for the `pUSD` asset

## 3. Step-by-step calculation

### Component A: Gross fee extraction for Polymarket Combos

- **Purpose**: Extract the gross fees generated by the Polymarket Combos product
- **Logic**: ERC-20 `Transfer` events of the `pUSD` asset on Polygon are filtered to identify fee payments. Transfers are selected where the recipient address is identified as a designated V2 fee recipient address and the sender address is identified as the Polymarket Combos exchange contract address. The transferred values are extracted to represent the gross fees generated by the Polymarket Combos product
- **Key fields**: `block_timestamp` (timing), `transaction_hash` (transaction identification), `from_address` (Polymarket Combos exchange contract), `to_address` (V2 fee recipient), `value` (fee amount), `token_address` (`pUSD` asset address)

### Component B: Supply-side fee determination

- **Purpose**: Determine the supply-side fees to be deducted from gross fees
- **Logic**: Supply-side fees for Polymarket Combos are established as zero. While taker rebates are distributed to users of other Polymarket products, no such rebates or supply-side distributions are allocated to the Polymarket Combos product
- **Key fields**: None

### Component C: USD conversion and normalization

- **Purpose**: Normalize fee values and convert them to USD
- **Logic**: Gross fee amounts are normalized by the decimal precision of the `pUSD` asset. The normalized amounts are then multiplied by the end-of-day price of the `pUSD` asset using end-of-day price feeds
- **Key fields**: `amount` (normalized fee quantity), `price_usd` (asset price)

### Component D: Revenue calculation

- **Purpose**: Calculate the net revenue retained by the protocol for Polymarket Combos
- **Logic**: Revenue is calculated by subtracting supply-side fees from gross fees. Since supply-side fees for Polymarket Combos are determined to be zero, the final revenue is established as equal to the USD-converted gross fees. The daily revenue values are aggregated using UTC day boundaries
- **Key fields**: `fees` (gross fees), `fees_supply_side` (supply-side fees), `revenue` (retained 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

Prediction markets

Liquidity providers deposit funds into Polymarket and receive trading fees from traders (supply-side fees). Polymarket has also launched a new peer-to-peer order book with no liquidity providers involved.

Polymarket is a non-custodial prediction market protocol built on Polygon. Polymarket was founded by Shayne Coplan and launched in 2020.

Polymarket team & investors own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Polymarket's investors include Polychain, 1Confirmation, ParaFi Capital, etc.

Polymarket Combos

Revenue

Revenue

Chain breakdown