Options buyers pay premium (supply-side fees) to liquidity providers who collaterize these option positions and cover possible profits.

Premia is an options trading protocol built on Ethereum & adjacent blockchains. Premia was founded by Anon Powered team and launched in 2021.

PREMIA tokenholders own and govern the protocol. They take a protocol fee (revenue) from options trading.

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Premia

# Premia Revenue Methodology

## 1. Overview

Premia revenue represents the total fees collected by the Premia protocol from options trading and exercise activities. This metric captures two main revenue streams: trading fees charged on options purchases and sales, and exercise fees charged when options are exercised or when APY fees are paid. The calculation aggregates fees across multiple blockchains and converts them to USD for standardized reporting.

## 2. Data sources

The methodology relies on several key data sources:

- **Blockchain events**: Parsed Premia v1 contract events from Ethereum, Arbitrum, Fantom, and Optimism including `Pool_Purchase_event`, `Pool_Sell_event`, `Pool_Exercise_event`, and `Pool_APYFeePaid_event`
- **Market deployment data**: `ProxyManager_DeployPool_event` logs that establish the relationship between pools and their underlying/base tokens
- **Token metadata**: Token information including symbols, decimal places, and contract addresses for proper fee token identification
- **External data**: End-of-day price feeds for USD conversion of fees collected in various tokens

## 3. Step-by-step calculation

### Component A: Trading fees
- **Purpose**: Captures fees charged by Premia on options trading (purchases and sales)
- **Logic**: Processes `Pool_Purchase_event` and `Pool_Sell_event` logs from Premia v1 contracts across four chains. The system decodes the `longTokenId` parameter by dividing by 2^248 to determine the token type: a value of 4.0 indicates the fee is paid in the underlying token (for CALL options), while 6.0 indicates the fee is paid in the base token (for PUT options). Each event is joined with the corresponding `ProxyManager_DeployPool_event` to identify the pool's underlying and base tokens, then with token metadata to get symbols for categorization.
- **Key fields**: `feeCost` contains the fee amount, `longTokenId` determines the fee token, `baseCost` shows the premium, and `contractSize` indicates volume

### Component B: Exercise fees  
- **Purpose**: Captures fees from options exercise activities and APY fee payments
- **Logic**: Processes two event types. For `Pool_Exercise_event`, the system uses `longTokenId` decoding similar to trading fees (4.0 = underlying token, 6.0 = base token) and extracts the fee from the `fee` field. For `Pool_APYFeePaid_event`, it uses `shortTokenId` decoding where 5.0 indicates the underlying token and 7.0 indicates the base token, extracting the fee from the `amount` field. All events are joined with market deployment data and token metadata for proper token identification.
- **Key fields**: `fee` field for exercise events, `amount` field for APY fee events, `longTokenId` and `shortTokenId` for token identification

### Final aggregation
- **Combining components**: Trading fees and exercise fees are combined using a union operation, maintaining separate records for each fee type while standardizing the field structure with common `token_address` and `fee_amount` fields
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token price feeds, with automatic correction for token decimal places to ensure accurate valuation regardless of the original token's denomination
- **Time aggregation**: Fees are aggregated by day using timestamp truncation, grouping by chain, market sector, business segment, product, and token address to maintain granular reporting capabilities
- **Final calculation**: The final revenue metric represents the sum of all USD-converted fees collected by Premia across all chains and fee types for each day, with zero-filling applied for days with no activity to ensure complete time series data

*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.

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