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Exchanges (DEX)

Raydium

# Raydium Fees Methodology

## 1. Overview

Raydium fees represents the total USD value of fees collected by the Raydium protocol across all its product variants on Solana. This metric aggregates three distinct fee sources: trading fees from swap transactions, pool creation fees for new liquidity pools, and platform-specific fees from LaunchLab operations. The metric answers how much revenue the Raydium protocol generates from its various decentralized exchange and launch services.

## 2. Data sources

- **Solana DEX trades**: Parsed swap events from the Solana DEX trades aggregation covering multiple Raydium program addresses including Standard AMM (CPMM), Concentrated Liquidity (CLMM), OpenBook legacy AMM, StableSwap AMM, and LaunchLab
- **Raydium instruction events**: On-chain instruction data from Raydium smart contracts including `CreateAmmConfig`, `UpdateAmmConfig`, `CreatePool`, `Initialize`, and `TradeEvent` instructions
- **End-of-day price feeds**: Daily token price data for Solana tokens used for USD conversion
- **Token metadata**: Token information including decimal precision for proper amount normalization

## 3. Step-by-step calculation

### Component A: Trading fees from swaps
- **Purpose**: Calculate fees generated from trading activity across Raydium's swap products
- **Logic**: Extract swap transactions from Solana DEX trades for five Raydium programs (CPMM, CLMM, OpenBook, StableSwap, LaunchLab). Filter for valid swaps with non-null amounts and addresses. Apply product-specific fee rates: dynamic rates from pool configurations for CPMM and CLMM (rates stored as integers divided by 10^6), fixed 0.25% for OpenBook, fixed 0.02% for StableSwap. LaunchLab swaps are excluded as they have separate fee tracking. Aggregate trade volumes daily by pool and product. Convert base and quote token amounts to USD using end-of-day prices. Calculate trading volume by prioritizing stablecoins (USDC, USDT) or SOL as the base token, otherwise selecting the token with lesser USD value to avoid double-counting
- **Key fields**: `trading_volume_usd` calculated from token amounts and prices, `trade_fee_rate` from pool configurations or fixed rates, final fees as `trading_volume_usd * trade_fee_rate`

### Component B: Pool creation fees
- **Purpose**: Capture one-time fees paid when creating new CPMM liquidity pools
- **Logic**: Extract CPMM pool initialization events from `Initialize_instruction` events. Each pool creation incurs a fixed 0.15 SOL fee. Convert SOL amounts to USD using end-of-day SOL prices. Aggregate by day and product
- **Key fields**: Fixed `fee_amount` of 0.15 SOL per pool, `fee_amount_usd` after price conversion

### Component C: LaunchLab platform fees
- **Purpose**: Calculate platform-specific fees from LaunchLab token launch and trading operations
- **Logic**: Extract LaunchLab trade events from `TradeEvent_instruction` events containing `platform_fee`, `protocol_fee`, and `share_fee` fields. Normalize fee amounts by dividing by token decimal precision. Convert to USD using end-of-day token prices. Aggregate daily by product. Combine platform and protocol fees for final fee amount (share_fee is excluded from total fees)
- **Key fields**: `platform_fee_usd` and `protocol_fee_usd` combined for total LaunchLab fees

### Dynamic fee rate configuration
- **Purpose**: Track changing fee rates for CPMM and CLMM pools over time
- **Logic**: Build fee rate history from `CreateAmmConfig` and `UpdateAmmConfig` instruction events. Map pools to AMM configurations through pool creation events. Create temporal intervals using block slot-based ordering to determine which fee settings apply to each trade. Fee rates include `trade_fee_rate`, `protocol_fee_rate`, and `fund_fee_rate` stored as integers and converted to percentages by dividing by 10^6. Handle partial updates where only specific fee parameters change by carrying forward previous values
- **Key fields**: `amm_config` identifiers, temporal `order_id` for chronological ordering, fee rate parameters as integers requiring decimal conversion

### Final aggregation
- **Combining components**: Union all three fee sources (trading fees, pool creation fees, LaunchLab fees) using UNION ALL operation, then aggregate by timestamp, chain, and product using SUM function
- **Currency conversion**: All fees converted to USD using end-of-day token prices with one-day lag to ensure price availability
- **Time aggregation**: Daily boundary logic using timestamp truncation to day level, with all fees aggregated within each 24-hour period
- **Final calculation**: Total daily Raydium fees equals the sum of (trading_volume_usd × trade_fee_rate) for all swaps + 0.15 SOL equivalent in USD for each pool creation + (platform_fee_usd + protocol_fee_usd) for LaunchLab operations

*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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