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Lending

Prime Numbers

# Prime Numbers Fees Methodology

## 1. Overview

The PrimeNumbers fees metric measures the total daily fees generated by the PrimeFi Lending lending protocol on the XDC blockchain. This metric captures both interest fees from lending/borrowing activities and flash loan premiums, providing a comprehensive view of protocol revenue. The calculation follows the AAVE v2 fee distribution model, where interest fees are split between the protocol (treasury) and liquidity suppliers based on configurable reserve factors.

## 2. Data sources

The calculation relies on several key data sources:

- **XDC token transfer events**: Specifically aToken transfers to the PrimeNumbers treasury address to track interest fee collections
- **PrimeNumbers contract events**: Including `FlashLoan` events for premium calculations, `ReserveFactorChanged` events for fee split parameters, and `ReserveInitialized` events for market identification
- **End-of-day token price feeds**: Used for USD conversion with special handling for psXDC token pricing
- **Token metadata**: Provides decimal precision information for proper amount calculations
- **Market configuration data**: Maps underlying tokens to their corresponding aToken and variable debt token addresses

## 3. Step-by-step calculation

### Component A: Interest fee identification
- **Purpose**: Identifies interest fees collected by the protocol treasury through aToken mints
- **Logic**: Filters XDC token transfer events for aToken transfers to the PrimeNumbers treasury address (`0x9d96d06cb863b76b07670e98d86470407a965a9c`) from the null address (`0x0000000000000000000000000000000000000000`). These transfers represent newly minted aTokens that go directly to the treasury as the protocol's share of interest fees. The transfers are matched against the market dimensions to identify which lending markets generated the fees.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `token_address` (aToken), `value` (fee amount)

### Component B: Reserve factor calculation
- **Purpose**: Determines the fee split between protocol and liquidity suppliers for each market
- **Logic**: Tracks `ReserveFactorChanged` events from the PrimeNumbers LendingPoolConfigurator to build a daily time series of reserve factors for each token market. Reserve factors are stored as basis points (divided by 10,000) and default to 0.10 (10%) when not explicitly set. The system creates daily snapshots using forward-fill logic to maintain consistent reserve factors across time periods.
- **Key fields**: `timestamp`, `token_address`, `reserve_factor` (as decimal between 0-1)

### Component C: Interest fee calculation
- **Purpose**: Calculates total interest generated and splits between protocol revenue and supply-side fees
- **Logic**: Combines fee transfers with corresponding reserve factors to calculate the full interest amount. Since the treasury receives only its portion (reserve factor percentage), the total interest is calculated by dividing the treasury amount by the reserve factor. Supply-side fees are then calculated as the difference between total interest and protocol revenue. The formula is: total interest = treasury amount / reserve factor; supply-side fees = total interest × (1 - reserve factor).
- **Key fields**: `amount` (treasury fee), `reserve_factor`, `fees_supply_side`, `revenue` (protocol portion)

### Component D: Flash loan fees
- **Purpose**: Captures fees from flash loan operations
- **Logic**: Extracts flash loan premium amounts directly from `FlashLoan` events emitted by the PrimeNumbers LendingPool contract. These premiums represent the fees charged to users for flash loan services and are treated as additional protocol revenue.
- **Key fields**: `block_timestamp`, `token_address`, `premium_amount`

### Component E: Token corrections and aggregation
- **Purpose**: Standardizes token amounts and combines fee types
- **Logic**: Applies decimal corrections using token metadata to ensure proper amount representation across different tokens. Combines interest fees (both protocol revenue and supply-side components) with flash loan fees, grouping by day, chain, product, and token address. Daily timestamp truncation ensures consistent time boundaries.
- **Key fields**: Corrected `fees` amounts aggregated by time period and token

### Component F: Price conversion
- **Purpose**: Converts token amounts to USD values
- **Logic**: Maps token addresses for price lookup, with special handling for psXDC token which is mapped to WXDC (`0x9b8e12b0bac165b86967e771d98b520ec3f665a6` mapped to `0x951857744785e80e2de051c32ee7b25f9c458c42`) for pricing purposes. Applies end-of-day price feeds to convert token amounts to USD equivalents.
- **Key fields**: `price_token_address`, USD-converted `fees`

### Final aggregation
- **Combining components**: Interest fees and flash loan fees are combined through union operations, then aggregated by timestamp, chain, and product to create daily totals
- **Currency conversion**: USD conversion occurs after token decimal corrections, using end-of-day price feeds with the psXDC to WXDC mapping for accurate pricing
- **Time aggregation**: All fees are truncated to daily boundaries and summed to create consistent daily totals
- **Final calculation**: The metric represents the sum of all USD-denominated fees (interest + flash loan) generated by PrimeNumbers protocol each day, with zero-filling applied for days with no activity to maintain complete time series

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

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

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