# Raydium OpenBook Revenue Methodology

## 1. Overview

Revenue measures the portion of trading fees that Raydium OpenBook retains from its Legacy AMM V4 liquidity pools. This metric represents the protocol's earnings (the "take rate") generated from swap activities, before the deduction of operating expenses. While the majority of fees generated by Raydium OpenBook are distributed to supply-side participants (liquidity providers), a specific percentage is allocated to the protocol as revenue.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Raydium OpenBook trade identification

- **Purpose**: Isolate swap transactions specifically interacting with Raydium OpenBook (Legacy AMM V4) pools.
- **Logic**: Transactions are filtered from the Solana blockchain where the executing program account matches the Raydium OpenBook program ID. For each identified swap, the instruction data is parsed to extract the base asset amount, quote asset amount, and the specific pool address involved in the trade.
- **Key fields**: `executing_account`, `base_amount`, `quote_amount`, `pool_address`

### Component B: Protocol revenue calculation

- **Purpose**: Apply the protocol's take rate to the generated trading volume to determine retained revenue.
- **Logic**: A fixed trade fee rate of 0.25% is applied to the trading volume of each swap. Protocol revenue is then calculated by applying a 3% take rate to these trade fees (representing a total protocol fee of 0.0075% of trading volume). No additional fund fees are applied to Raydium OpenBook transactions.
- **Key fields**: `trade_fee_rate` (0.0025), `protocol_fee_rate` (0.03)

### Component C: USD conversion and aggregation

- **Purpose**: Normalize revenue values to USD and aggregate data into daily intervals.
- **Logic**: Asset amounts are normalized by decimal precision. Trading volume is determined in USD by multiplying the asset amounts by end-of-day price feeds. For each swap, the pricing asset is preferentially selected from established stablecoins or the native SOL asset; if neither is available, the asset with the lower USD value is used for the volume calculation. The protocol revenue is then derived from this USD-denominated volume and aggregated by day using UTC boundaries.
- **Key fields**: `price_usd`, `block_timestamp`

*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.