# Raydium OpenBook Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute swaps through Raydium OpenBook (Legacy AMM V4) liquidity pools. This metric reflects the economic value generated by trading activity, representing the cost of liquidity and protocol usage. Collected fees are denominated in the assets involved in the trade and are subsequently converted to USD for standardized reporting.

## 2. Data sources

- **Blockchain events**: Trade instructions from the Raydium OpenBook program (Legacy AMM V4), covering Solana
- **External data**: End-of-day price feeds for swapped assets

## 3. Step-by-step calculation

### Component A: Trade instruction identification

- **Purpose**: Identify and extract successful swap activity from the Raydium OpenBook program
- **Logic**: Trade instructions are parsed from the Solana DEX trade records. Activity is filtered specifically for the Raydium OpenBook program (Legacy AMM V4) to ensure only relevant liquidity pool interactions are captured. Instructions with null values for asset amounts or mint accounts are excluded to maintain data integrity.
- **Key fields**: `pool_address`, `base_amount`, `quote_amount`, `base_mint_address`, `quote_mint_address`

### Component B: Volume normalization and fee application

- **Purpose**: Calculate the gross fee amount based on trading volume and established fee tiers
- **Logic**: Raw asset amounts from the base and quote vaults are normalized by their respective decimal precision. A standard trade fee rate of 0.25% (0.0025) is applied to the trading volume. For Raydium OpenBook, this rate is a fixed protocol constant used to determine the total value paid by the user per transaction.
- **Key fields**: `base_amount`, `quote_amount`, `trade_fee_rate`

### Component C: USD conversion and aggregation

- **Purpose**: Convert normalized fee amounts into a common currency and aggregate by time
- **Logic**: Normalized fee amounts are multiplied by end-of-day price feeds for the respective assets. The calculation prioritizes price feeds for major assets such as SOL, USDC, or USDT to determine the transaction's USD value. Daily fee totals are aggregated using UTC day boundaries by summing the USD value of all trades executed within the period.
- **Key fields**: `price_usd`, `block_timestamp`

*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)