# Raydium CLMM Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute trades within Raydium CLMM concentrated liquidity pools. These fees are collected on every swap and are determined by the specific fee tier configuration assigned to each pool. The metric represents the gross economic value generated by the product's trading activity, which is subsequently distributed between liquidity providers and the protocol.

## 2. Data sources

- **Blockchain events**: `CreateAmmConfig`, `UpdateAmmConfig`, and `CreatePool` instructions from the `CLMM` program on Solana, as well as trade instructions parsed from the Solana DEX program
- **External data**: End-of-day price feeds for assets traded within the pools

## 3. Step-by-step calculation

### Component A: Fee configuration and pool mapping

- **Purpose**: To identify the specific trading fee rates applied to different concentrated liquidity pools.
- **Logic**: `CreateAmmConfig` and `UpdateAmmConfig` instructions from the `CLMM` program are parsed to extract the `trade_fee_rate`. These configurations are then associated with specific liquidity pools using data from `CreatePool` instructions from the `CLMM` program. Historical updates to these rates are tracked to ensure that swaps are always mapped to the correct fee rate active at the time of the transaction.

### Component B: Trading volume normalization

- **Purpose**: To calculate the USD-denominated volume for swaps occurring in concentrated liquidity pools.
- **Logic**: Trade data is retrieved from Solana DEX instructions where the executing program is the Raydium CLMM program. Asset quantities are normalized by decimal precision. To determine the USD value of the trade, end-of-day price feeds are applied to the base and quote assets. Volume is attributed based on a priority list of assets (SOL, USDC, or USDT); if neither asset in the pair is a priority asset, the volume is derived from the asset with the lower USD value to prevent double-counting.

### Component C: Fee aggregation and USD conversion

- **Purpose**: To calculate the total fee value in USD and aggregate it by day.
- **Logic**: Fees are calculated by multiplying the daily USD trading volume of each pool by its respective `trade_fee_rate`. These pool-level fee totals are aggregated to the product level for Raydium CLMM. All calculations are performed with daily granularity using UTC day boundaries.

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

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

Fees

Exchanges (DEX)