# Raydium CLMM Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that a project retains, as determined by its take rate. For Raydium CLMM, this metric represents the protocol-retained share of swap fees, which consists of the protocol fee and the fund fee components. These fees are collected from trading activity within concentrated liquidity pools and are calculated before the distribution of incentives to supply-side participants or the deduction of operating expenses.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Fee configuration tracking

- **Purpose**: To identify the protocol and fund fee rates applicable to each liquidity pool
- **Logic**: Fee parameters are extracted from `CreateAmmConfig` and `UpdateAmmConfig` instructions within the Raydium CLMM program. The `protocol_fee_rate` and `fund_fee_rate` are captured for each configuration account. These values are normalized by a factor of one million to convert integer representations into decimal percentages. The resulting rates are mapped to specific pools using `CreatePool` instructions to ensure accurate fee application per transaction.

### Component B: Trading volume identification

- **Purpose**: To calculate the gross value of swaps processed by the concentrated liquidity program
- **Logic**: Trade instructions are parsed from the Solana DEX trades abstraction for operations associated with the Raydium CLMM program. Base and quote asset amounts are normalized by their respective decimal precisions. To determine a single USD volume per swap, the value of the stablecoin (USDC or USDT) or native SOL side of the trade is prioritized. If neither asset is a stablecoin or SOL, the lesser USD value of the two assets is selected to ensure conservative volume estimation.

### Component C: Revenue calculation and USD conversion

- **Purpose**: To determine the final USD-denominated revenue retained by the protocol
- **Logic**: Daily protocol revenue is calculated by multiplying the identified trading volume by the total trade fee rate and the combined percentage of the protocol and fund fees. All values are converted to USD using end-of-day asset price feeds. The data is aggregated at a daily granularity with UTC day boundaries, and a zero-fill strategy is applied to ensure continuity in the time series.

*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.