# Polymarket International Revenue Methodology

## 1. Overview

Revenue measures the portion of transaction fees retained by Polymarket International after the distribution of supply-side fees to participants. Net earnings from trading activity across both automated market maker (AMM) and order book platforms are represented by this metric. Revenue is calculated by subtracting supply-side fees, including taker rebates and historical AMM liquidity provider fees, from the total fees generated by the platform. A clear view of the protocol's direct financial performance before operating expenses is provided by this metric.

## 2. Data sources

- **Blockchain events**: `FPMMBuy` and `FPMMSell` events from `FixedProductMarketMaker` contracts, `OrderFilled` events from `Exchange` and `NegRiskCtfExchange` contracts, and ERC-20 `Transfer` events, covering Polygon
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Automated market maker fee extraction

- **Purpose**: Capture fees generated from Polymarket International's V1 AMM.
- **Logic**: `FPMMBuy` and `FPMMSell` events are parsed from `FixedProductMarketMaker` contracts on Polygon. The fee amount field is extracted from each event to represent USDC fees paid during AMM trades.
- **Key fields**: `block_timestamp`, `token_address` (USDC), and `amount` (fee amount).

### Component B: Order book fee extraction

- **Purpose**: Capture fees generated from Polymarket International's V1 and V2 order book models.
- **Logic**: For V1, ERC-20 `Transfer` events of USDC from designated fee source addresses to V1 fee recipient addresses are tracked. For V2, ERC-20 `Transfer` events of pUSD to V2 fee recipient addresses are tracked where the transfers occur within transactions containing `OrderFilled` events from `Exchange` or `NegRiskCtfExchange` contracts. Transfers originating from the Polymarket Combos exchange address are excluded to isolate Polymarket International.
- **Key fields**: `block_timestamp`, `token_address` (USDC or pUSD), and `amount` (transfer value).

### Component C: Supply-side fee tracking

- **Purpose**: Determine the portion of fees distributed to supply-side participants.
- **Logic**: ERC-20 `Transfer` events of USDC and pUSD from rebate distribution addresses to users are tracked, filtering for those labeled as taker rebates. Prior to the order book launch date, supply-side fees are defined as 100% of the total AMM fees. After the order book launch date, supply-side fees are defined as the total value of taker rebates distributed.
- **Key fields**: `block_timestamp`, `token_address`, `amount` (rebate value), and `rebate_type` (taker rebates).

### Component D: USD conversion and normalization

- **Purpose**: Normalize fee and rebate amounts to USD.
- **Logic**: Fee and rebate amounts are normalized by decimal precision using asset metadata. Normalized amounts are multiplied by end-of-day asset prices to convert the values to USD.
- **Key fields**: `timestamp`, `chain_id`, `token_address`, and `price_usd`.

### Component E: Revenue calculation

- **Purpose**: Calculate the net revenue retained by Polymarket International.
- **Logic**: Total fees (the sum of AMM and order book fees) and supply-side fees are aggregated by day. Daily revenue is calculated by subtracting daily supply-side fees from daily total fees.
- **Key fields**: `timestamp`, `fees`, `fees_supply_side`, and `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 International

Revenue

Revenue

Chain breakdown