# Raydium CPMM Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that Raydium CPMM retains, as determined by its protocol and fund take rates. This metric includes the share of trading fees diverted from liquidity providers to the protocol and ecosystem fund, as well as fixed fees collected during the initialization of new liquidity pools. Revenue reflects the protocol's earnings before accounting for operating expenses or token incentives.

## 2. Data sources

- **Blockchain events**: `Initialize`, `CreateAmmConfig`, and `UpdateAmmConfig` instructions from the `CPMM` program on Solana, as well as indexed decentralized exchange trade data
- **External data**: End-of-day price feeds for assets

## 3. Step-by-step calculation

### Component A: Fee configuration tracking

- **Purpose**: Identify the specific fee percentages applicable to different liquidity pools over time.
- **Logic**: `CreateAmmConfig` and `UpdateAmmConfig` instructions from the `CPMM` program are parsed to extract trade fee, protocol fee, and fund fee rates. These configurations are mapped to specific liquidity pools using the association established in `Initialize` instructions from the `CPMM` program. Fee rates are tracked chronologically to ensure the correct rate is applied based on the block timestamp of each transaction.

### Component B: Swap revenue calculation

- **Purpose**: Determine the protocol's share of fees generated from trading activity.
- **Logic**: Swap instructions are identified from decentralized exchange activity on Solana. Trading volume is calculated by identifying the value of the exchanged assets, with a prioritization logic that selects stablecoins or native SOL as the reference asset; if neither is available, the asset with the lower USD value is used. Protocol revenue is calculated by multiplying the trading volume by the trade fee rate and the sum of the protocol and fund fee rates.

### Component C: Pool initialization fees

- **Purpose**: Capture fixed revenue generated from the creation of new liquidity pools.
- **Logic**: `Initialize` instructions from the `CPMM` program are parsed. Each successful initialization is assigned a fixed fee of 0.15 SOL. This fee represents the protocol's take for deploying new liquidity infrastructure.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all revenue components into a single currency for reporting.
- **Logic**: All collected fees are normalized by decimal precision. Revenue values originally denominated in SOL or other SPL assets are multiplied by end-of-day price feeds. The resulting values are aggregated by day using UTC boundaries to produce the final daily revenue metric.

*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.