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Exchanges (DEX)

Raydium

# Raydium Revenue Methodology

## 1. Overview

Raydium revenue represents the total USD value of fees earned by the Raydium protocol across all its decentralized exchange products on Solana. The metric combines three revenue streams: trading fees from swaps, pool creation fees, and LaunchLab protocol fees. Revenue is calculated by applying protocol-specific fee rates to trading volumes and fixed fees, then converting to USD using end-of-day token prices.

## 2. Data sources

- **Solana DEX trades**: Comprehensive swap transaction data capturing all decentralized exchange activity on Solana, filtered by Raydium program addresses
- **Raydium instruction events**: Parsed Solana instruction events from Raydium smart contracts including:
  - `CreateAmmConfig` and `UpdateAmmConfig` instructions for dynamic fee configuration
  - `CreatePool` and `Initialize` instructions for pool creation tracking  
  - `TradeEvent` instructions from LaunchLab for protocol fee capture
- **End-of-day token price feeds**: Daily USD price data for Solana tokens including SOL, USDC, USDT and other traded tokens
- **Token metadata**: Token contract addresses, decimal places, and standard identifiers for amount normalization

## 3. Step-by-step calculation

### Component A: Trading fee revenue
- **Purpose**: Calculate revenue from swap trading fees across all Raydium AMM products except LaunchLab
- **Logic**: Extract all swap trades from Solana DEX data where the executing program matches Raydium addresses for CPMM, CLMM, OpenBook, or StableSwap products. Apply product-specific fee structures: for CPMM and CLMM pools, retrieve dynamic fee rates from configuration events using temporal joins to match the active fee setting at trade time; for OpenBook pools, apply fixed rates of 0.25% trading fee with 3% protocol share; for StableSwap pools, apply 0.02% trading fee with 0% protocol share. Calculate trading volume by prioritizing stable tokens (USDC, USDT) or SOL when available, otherwise using the lesser USD value between base and quote amounts. Multiply trading volume by fee rates to determine protocol revenue portion
- **Key fields**: `trading_volume_usd` (USD trading volume), `trade_fee_rate` (total trading fee percentage), `protocol_fee_rate` (protocol's share of trading fees), `fund_fee_rate` (additional protocol fee component)

### Component B: Pool creation fees  
- **Purpose**: Calculate revenue from fees charged when new CPMM pools are created
- **Logic**: Extract pool creation events from Raydium CPMM `Initialize` instructions which charge a fixed 0.15 SOL fee per new pool. Convert SOL amounts to USD using end-of-day SOL prices matching the creation date. Aggregate fees by day and product type
- **Key fields**: `fee_amount` (fixed 0.15 SOL fee), `pool_address` (newly created pool identifier), `token_address` (SOL mint address)

### Component C: LaunchLab protocol fees
- **Purpose**: Calculate protocol fees from Raydium LaunchLab trading activity  
- **Logic**: Extract protocol fees from LaunchLab `TradeEvent` instructions which contain explicit protocol fee amounts in native token units. Convert native token amounts to USD using end-of-day price feeds and token decimal normalization. Aggregate daily protocol fees excluding platform and share fees
- **Key fields**: `protocol_fee` (native token fee amount), `token_address` (fee token identifier), `decimals` (token decimal places for normalization)

### Component D: Fee configuration management
- **Purpose**: Track historical fee rate changes for CPMM and CLMM pools
- **Logic**: Process `CreateAmmConfig` instructions to establish initial fee configurations and `UpdateAmmConfig` instructions to track fee rate modifications over time. Create temporal intervals for each configuration to enable point-in-time fee rate lookups. Map individual pools to their associated fee configurations through pool creation events. Convert fee rates from basis points to percentages by dividing by 1,000,000
- **Key fields**: `amm_config` (fee configuration identifier), `trade_fee_rate` (total trading fee in basis points), `protocol_fee_rate` (protocol share in basis points), `fund_fee_rate` (additional protocol fee in basis points)

### Final aggregation  
- **Combining components**: Sum trading fee revenue, pool creation fee revenue, and LaunchLab protocol fee revenue using UNION ALL operations, maintaining daily granularity and product identification
- **Currency conversion**: Apply USD conversion using end-of-day token price feeds matched by date, chain, and token address, ensuring consistent pricing methodology across all revenue streams
- **Time aggregation**: Aggregate all revenue components by day using timestamp truncation, maintaining separate tracking by chain and product type for detailed analysis
- **Final calculation**: Revenue equals the sum of (trading volume × trading fee rate × protocol fee percentage) + pool creation fees in USD + LaunchLab protocol fees in USD, aggregated daily across all Raydium products and converted to USD using end-of-day exchange rates

*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.

RaydiumRAY

Revenue

Revenue

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