Liquidity providers deposit funds into PoolTogether and receive a return on investment in lottery winnings (supply-side fees).

PoolTogether is an asset management (no-loss lottery) protocol built on Ethereum and other adjacent blockchains. PoolTogether was founded by Leighton Cusack and launched in 2019.

POOL tokenholders own and govern the protocol. They currently do not take a cut of the total return on investment paid by liquidity providers (revenue). PoolTogether’s investors include IDEO CoLab Ventures, DTC Capital, ConsenSys Ventures, etc.

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PoolTogether

# PoolTogether Fees Methodology

## 1. Overview

PoolTogether fees represent the daily revenue generated from users claiming prize draws in the PoolTogether v4 protocol. This metric captures the payout amounts distributed when users successfully claim prizes from draw events across multiple blockchain networks. The calculation aggregates `ClaimedDraw` event data from PoolTogether v4 contracts, converts amounts to USD, and presents daily totals. This metric answers the business question: "How much revenue does PoolTogether generate daily from prize distribution activities?"

## 2. Data sources

The methodology relies on several key data sources:

- **Blockchain events**: Parsed `ClaimedDraw` events from PoolTogether v4 `PrizeDistributor` and `RewardDistributor` contracts deployed on Ethereum, Polygon, Avalanche, and Optimism networks
- **Transaction data**: Block timestamps and transaction metadata associated with prize claim events
- **External data**: End-of-day price feeds for token-to-USD conversion and token metadata containing decimal precision information
- **Contract addresses**: Specific PoolTogether v4 contract addresses for `PrizeDistributor` (Ethereum, Avalanche, Optimism) and `RewardDistributor` (Polygon)
- **Token addresses**: USDC token addresses on Ethereum (`0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48`), Polygon (`0x2791bca1f2de4661ed88a30c99a7a9449aa84174`), and Optimism (`0x7f5c764cbc14f9669b88837ca1490cca17c31607`), plus USAVE token on Avalanche (`0xb97ef9ef8734c71904d8002f8b6bc66dd9c48a6e`)

## 3. Step-by-step calculation

### Component A: Draw claim fee extraction
- **Purpose**: Extracts and standardizes prize payout data from PoolTogether v4 claim events across multiple blockchain networks
- **Logic**: The system identifies `ClaimedDraw` events from PoolTogether v4 contracts across four chains. On Ethereum, Avalanche, and Optimism, these events come from `PrizeDistributor` contracts, while Polygon uses `RewardDistributor` contracts. Each event contains a `payout` field representing the amount distributed to users claiming prizes. The system captures the contract address, block timestamp, transaction hash, log index, and payout amount for each claim event. All events are classified under the 'Asset management' business line with 'yield_aggregator' business segment classification
- **Key fields**: `payout` amounts from event logs, `block_timestamp` for temporal grouping, contract `address` for source identification, `transaction_hash` and `log_index` for unique event identification

### Component B: Daily fee aggregation
- **Purpose**: Groups claim events by day and prepares amounts for currency conversion
- **Logic**: The system truncates block timestamps to daily boundaries using day-level precision, effectively grouping all events that occurred within the same calendar day. For each day, it sums the total `payout` amounts across all claim events. The system maintains chain-specific groupings and maps each day's fees to the appropriate token address based on the originating blockchain network
- **Key fields**: Truncated `timestamp` for daily grouping, `chain` identifier for network-specific processing, `amount` representing daily aggregated payout totals, `token_address` mapped to chain-specific tokens

### Component C: Currency conversion and decimal adjustment
- **Purpose**: Converts token amounts to USD values with proper decimal precision
- **Logic**: The system applies USD conversion using end-of-day price feeds matched to the daily timestamp and specific token address. It simultaneously corrects for token decimal precision, ensuring amounts are properly scaled based on each token's decimal configuration. USDC tokens typically use 6 decimals, while other tokens may vary. This process transforms raw token amounts into standardized USD values suitable for cross-chain aggregation
- **Key fields**: USD-converted `fees` amounts, properly scaled token quantities, timestamp-matched price data

### Final aggregation
- **Combining components**: Daily fees from all four chains are combined into a unified time series, with each day potentially containing fees from multiple networks depending on claim activity
- **Currency conversion**: USD conversion occurs at the daily level using end-of-day price feeds, ensuring consistent pricing across all chains and tokens
- **Time aggregation**: The system maintains daily-level granularity as the base time unit, with timestamp boundaries set at midnight UTC
- **Final calculation**: The final metric represents the sum of all USD-converted prize payouts distributed through PoolTogether v4 claim events for each calendar day, with missing days forward-filled with zero values to maintain complete time series continuity

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

Total value users pay to use a protocol (gross fees, user-paid fees).

PoolTogetherPOOL

Fees

Fees

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