Polynomial Protocol builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Polynomial trade futures against the liquidity provided by liquidity providers on Synthetix, with liquidity providers receiving trading fees (supply-side fees).

Polynomial Protocol is a non-custodial exchange for perpetual contracts built on Optimism. Polynomial Protocol was founded by Gautham Santhosh, Salman Naseer Ahmed, & Mubaris NK, and their flagship product Polynomial Trade was launched in 2023.

The Polynomial team own and govern the protocol. Polynomial’s investors include Archetype, Genblock Capital, Caballeros Capital, etc.

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Polynomial Protocol

# Polynomial Protocol Revenue Methodology

## 1. Overview

Polynomial revenue represents the total daily income generated by the Polynomial Protocol from its perpetual trading platform on Optimism. The metric captures two distinct revenue streams: trading fees from advanced order types (limit orders, pair orders) and revenue sharing payments from Synthetix's kickback program (SIP-2002). This metric answers the business question of how much total revenue Polynomial Protocol generates daily from its derivatives trading operations, combining both direct trading fees and partnership-based revenue sharing.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Polynomial v1 event logs**: Parsed blockchain events from Polynomial's advanced order execution contracts on Optimism, including `SynthetixLimitOrders_ExecuteRequest`, `AdvancedOrders_ExecuteLimitOrder`, and `AdvancedOrders_ExecutePairOrder` events
- **Optimism token transfer events**: Parsed `Transfer` events specifically filtering SNX token movements between Synthetix and Polynomial addresses
- **End-of-day price feeds**: Token price data for converting sUSD and SNX amounts to USD equivalents
- **Token metadata**: Decimal precision information for sUSD and SNX tokens used in amount standardization

## 3. Step-by-step calculation

### Component A: Limit order trading fees
- **Purpose**: Captures revenue from Polynomial's advanced order execution fees
- **Logic**: Extracts trading fees from three types of advanced order execution events on Polynomial v1 Optimism contracts. Each event represents a completed advanced order (limit order, pair order, or Synthetix limit order) where Polynomial collected a trading fee. The system identifies these events by their specific event signatures and extracts the `totalFee` field which represents the fee charged to users for executing advanced orders. All fees are denominated in sUSD tokens and classified under perpetual trading business line within the derivatives market sector.
- **Key fields**: `totalFee` represents the trading fee amount, `block_timestamp` for daily aggregation, transaction and log identifiers for deduplication, and contract address for event source verification

### Component B: Synthetix kickback revenue  
- **Purpose**: Captures revenue sharing payments from Synthetix's SIP-2002 kickback program
- **Logic**: Identifies SNX token transfers that represent revenue sharing payments from Synthetix to Polynomial Protocol. The system filters Optimism token transfer events for SNX tokens, specifically looking for transfers from Synthetix's designated kickback sender address to Polynomial's designated receiver address. This represents Polynomial's share of trading fees generated on Synthetix through Polynomial's trading activity, as defined by the SIP-2002 governance proposal. Each qualifying transfer represents a kickback payment denominated in SNX tokens.
- **Key fields**: `value` represents the SNX transfer amount, transfer addresses for filtering (`from_address`, `to_address`), `token_address` to identify SNX tokens, and `block_timestamp` for daily aggregation

### Final aggregation
- **Combining components**: Both revenue streams are combined using a union operation, with each maintaining its distinct token denomination (sUSD for trading fees, SNX for kickbacks) and timestamp information for daily aggregation
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied based on each token's decimal precision (18 decimals for both sUSD and SNX)
- **Time aggregation**: All revenue events are aggregated to daily boundaries using timestamp truncation, grouping all events within each 24-hour period
- **Final calculation**: The final daily revenue equals the sum of USD-converted trading fees from advanced order executions plus USD-converted SNX kickback payments received from Synthetix, with any missing dates filled with zero values to maintain complete time series continuity

*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.

Polynomial Protocol

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