# Pons V1 Supply-side fees Methodology

## 1. Overview

Supply-side fees is calculated as the share of transaction fees generated by Pons V1 that is distributed to service providers and ecosystem participants, specifically asset creators and Uniswap liquidity protocol fee recipients. This metric is utilized to assess the economic incentives provided to creators who launch assets on the platform, as well as the fee-sharing dynamics with underlying Uniswap V3 liquidity pools. The total supply-side fees are calculated by aggregating the creator fee allocation and the Uniswap protocol fee share from swap activities on Pons V1 pools.

## 2. Data sources

- **Blockchain events**: `TokenLaunched` events from `TokenFactory` and `LegacyTokenFactory` contracts, and `Swap` and `SetFeeProtocol` events from Uniswap V3 `Pool` contracts, covering Robinhood Chain
- **External data**: End-of-day price feeds for launched assets and quote assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Pons V1 pool and parameter identification

- **Purpose**: Identify active Pons V1 pools and their associated fee-sharing parameters
- **Logic**: `TokenLaunched` events from `TokenFactory` and `LegacyTokenFactory` contracts are parsed to identify launched pools, their corresponding pair assets, and the protocol fee share. A protocol fee share of 30% is assigned to launches from `TokenFactory` contracts, while a protocol fee share of 10% is assigned to launches from `LegacyTokenFactory` contracts. The pair asset address and its position as either the first or second asset (token0 or token1) in the Uniswap V3 pool are mapped for each pool address.
- **Key fields**: `pool` (pool address), `pair_token` (pair asset address), `protocol_share` (protocol fee share percentage)

### Component B: Uniswap V3 trade and revenue split tracking

- **Purpose**: Track swap activities and determine the Uniswap protocol fee split for Pons V1 pools
- **Logic**: Uniswap V3 `Swap` events are filtered to isolate trades occurring on the identified Pons V1 pool addresses. The trade amount for the pair asset is extracted based on whether the pair asset is the first or second asset (token0 or token1) in the pool. The Uniswap protocol fee split is determined by joining the swap events with historical `SetFeeProtocol` events from Uniswap V3 `Pool` contracts, where the protocol's share of the swap fee is defined.
- **Key fields**: `amount0` (token0 trade amount), `amount1` (token1 trade amount), `revenue_split` (Uniswap protocol fee share)

### Component C: Pons V1 swap fee calculation

- **Purpose**: Calculate the total swap fees generated by Pons V1 pools
- **Logic**: A swap fee rate of 1% is applied to the pair asset volume of each trade. If the pair asset is paid into the pool (positive trade amount), the fee is calculated as the trade amount multiplied by 1%. If the pair asset is received from the pool (negative trade amount), the fee is calculated as the absolute trade amount multiplied by 1% and divided by 99% to account for the fee-deducted output.
- **Key fields**: `pair_amount` (signed pair asset trade amount), `fee_amount` (calculated swap fee)

### Component D: Supply-side fee allocation

- **Purpose**: Allocate the calculated swap fees to supply-side participants
- **Logic**: The total swap fee is split into protocol revenue and supply-side components. The Uniswap supply-side share is calculated by multiplying the total fee by the Uniswap revenue split. The creator supply-side share is calculated by multiplying the remaining fee (total fee minus Uniswap share) by the creator's share, which is the complement of the protocol fee share (70% for standard launches and 90% for legacy launches). The supply-side fees are calculated as the sum of the creator share and the Uniswap share, while the buyback share is set to zero for Pons V1.
- **Key fields**: `protocol_amount` (protocol revenue share), `creator_amount` (creator supply-side share), `uniswap_amount` (Uniswap supply-side share), `fees_supply_side` (total supply-side fees)

### Component E: Normalization and USD conversion

- **Purpose**: Normalize fee amounts by decimal precision and convert them to USD
- **Logic**: The allocated supply-side fee amounts are normalized by decimal precision using asset metadata. The normalized daily fee amounts are then multiplied by end-of-day asset prices to determine the USD value. The final values are aggregated daily using UTC boundaries.
- **Key fields**: `decimals` (asset decimal precision), `price_usd` (end-of-day asset price in USD), `fees_supply_side` (final USD-denominated supply-side fees)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Portion of fees distributed to service providers or supply-side participants.

Supply-side fees

Exchanges (DEX)

Pons charges a 0.0005 ETH launch fee and a fee on every trade. Trade fees are shared between the protocol, the token creator and optional meme token buybacks.

Pons is a token launchpad on Robinhood Chain. Version 2 launches sell tokens on a bonding curve and graduate them into locked Uniswap v4 pools, while version 1 launches trade directly in Uniswap v3 pools.