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 Supply-side fees Methodology

## 1. Overview

Supply-side fees for PoolTogether represent the rewards distributed to users who claim prize draws in the protocol. PoolTogether is a decentralized savings protocol where users deposit funds into prize pools and earn chances to win prizes. When users claim their prizes, they receive payouts that constitute the supply-side fees - the value flowing back to participants in the ecosystem. This metric aggregates all prize claim payouts across supported chains on a daily basis and converts them to USD to measure the total value distributed to users.

## 2. Data sources

The calculation uses the following raw data sources:
- **PoolTogether v4 smart contract events**: Parsed `ClaimedDraw` events from `PrizeDistributor` and `RewardDistributor` contracts across Ethereum, Polygon, Avalanche, and Optimism networks
- **Prize claim payouts**: The `payout` field from claim events, representing the reward amounts distributed to users
- **Token metadata**: Information about reward tokens used on each chain, including contract addresses and decimal precision
- **End-of-day price feeds**: USD price data for reward tokens to enable currency conversion
- **Chain-specific reward tokens**: USDC on Ethereum, USDC on Polygon, USDC.e on Avalanche, and USDC on Optimism

## 3. Step-by-step calculation

### Component A: Prize claim event extraction
- **Purpose**: Captures all prize claim transactions across supported PoolTogether v4 deployments
- **Logic**: Extracts `ClaimedDraw` events from PoolTogether v4 contracts on four chains. On Ethereum, Avalanche, and Optimism, these are `PrizeDistributor_ClaimedDraw_event` records, while Polygon uses `RewardDistributor_ClaimedDraw_event`. Each event includes the claiming user's address, transaction details, and the `payout` amount representing the prize value distributed to the user. The events are filtered to include distinct records based on block timestamp, transaction hash, and log index to avoid duplicates.
- **Key fields**: The `payout` field contains the raw token amount distributed to users, `address` identifies the claiming user, `block_timestamp` provides the claim timing, and chain-specific token addresses identify which reward token was used

### Component B: Daily fee aggregation  
- **Purpose**: Aggregates prize claim payouts into daily totals by chain and token
- **Logic**: Groups prize claim events by day using timestamp truncation, then sums the `payout` amounts for each combination of day, chain, and reward token. This creates daily fee totals representing the total value distributed to users on each chain. The aggregation maintains chain separation since different chains use different reward tokens with varying decimal structures.
- **Key fields**: Daily timestamps truncated to day boundaries, chain identifiers, token addresses for the specific reward tokens, and aggregated `fees` amounts representing total daily payouts

### Component C: USD conversion and standardization
- **Purpose**: Converts token amounts to USD and applies decimal corrections for consistent reporting
- **Logic**: Takes the daily aggregated token amounts and applies two key transformations. First, it corrects for token decimal places to convert from raw blockchain units to human-readable amounts (e.g., converting wei-based amounts to actual token units). Second, it joins with end-of-day price feeds to convert token amounts to USD values using the closing price for each day. This ensures all fees are reported in a common USD denomination regardless of the underlying reward token.
- **Key fields**: Token amounts converted from raw blockchain units to proper decimal representation, USD-denominated fee values calculated using end-of-day exchange rates, and standardized daily timestamps

### Final aggregation
- **Combining components**: The daily USD-converted fees are processed through the finalize metric macro, which standardizes the data schema, validates chain and product identifiers, and ensures complete daily time series coverage
- **Currency conversion**: All reward tokens are converted to USD using end-of-day price feeds, providing consistent cross-chain comparison
- **Time aggregation**: Data is aggregated at daily boundaries, with timestamp truncation ensuring proper daily rollups
- **Final calculation**: The metric represents the total USD value of prizes claimed by users each day across all supported PoolTogether v4 deployments. Missing days are filled with zero values to maintain complete time series, and the final output renames the fees field to `fees_supply_side` to clearly identify this as value flowing to protocol participants rather than value extracted by the protocol.

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

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

PoolTogetherPOOL

Supply-side fees

Supply-side fees

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Chain breakdown