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.

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Polymarket

# Polymarket Revenue Methodology

## 1. Overview

Revenue is measured as the portion of transaction fees retained by Polymarket after subtracting supply-side fees. The protocol's share of earnings generated from prediction market activity before operating expenses and token incentives is represented by this metric. Revenue is calculated for Polymarket International and Polymarket Combos, while Polymarket US is excluded from this metric. Prior to the launch of the order book model, all collected fees were allocated to the supply side, resulting in zero protocol revenue during that period.

## 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: Polymarket International and Polymarket Combos fee extraction

- **Purpose**: Total fees generated by the AMM and order book models are captured.
- **Logic**: For the V1 AMM model, fees are extracted from `feeAmount` fields in `FPMMBuy` and `FPMMSell` events emitted by `FixedProductMarketMaker` contracts. For the V1 order book model, fees are identified via ERC-20 `Transfer` events of USDC from designated fee source contracts to fee recipient addresses. For the V2 order book model, fees are identified via ERC-20 `Transfer` events of pUSD to V2 fee recipient addresses during transactions containing `OrderFilled` events from `Exchange` or `NegRiskCtfExchange` contracts. Fees originating from the Polymarket Combos exchange address are classified under Polymarket Combos, while other V2 fees are classified under Polymarket International.
- **Key fields**: `feeAmount`, `value`, `token_address`, `from_address`, `to_address`

### Component B: Supply-side fee and rebate tracking

- **Purpose**: The portion of fees distributed to supply-side participants is determined.
- **Logic**: Prior to the launch of the order book model, supply-side fees are set to equal 100% of total fees. After the order book launch, supply-side fees are determined by tracking taker rebates. Taker rebates are extracted from ERC-20 `Transfer` events of USDC and pUSD from designated rebate distributor addresses, while transfers sent to the protocol wallet are excluded.
- **Key fields**: `value`, `token_address`, `from_address`, `to_address`, `rebate_type`

### Component C: USD conversion and normalization

- **Purpose**: Fee and rebate amounts are normalized to USD.
- **Logic**: Collected fee and rebate amounts are normalized by decimal precision using asset metadata. Normalized values are multiplied by end-of-day asset prices to convert them to USD.

### Component D: Revenue calculation

- **Purpose**: The final protocol revenue is calculated.
- **Logic**: Daily revenue is calculated by subtracting supply-side fees from total fees for each product and chain. Because Polymarket US is excluded from the supply-side fee dataset, it is omitted from the final revenue calculation via an inner join, leaving only Polymarket International and Polymarket Combos.

*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.

Polymarket

Revenue

Revenue

Competitive landscape

Chain breakdown