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Reserve

# Reserve Fees Methodology

## 1. Overview

Reserve Protocol fees represent the total daily fees generated across Reserve's index and yield products. This metric combines three distinct revenue streams: fees from index token operations (including TVL management and mint fees), supply-side fees from yield product burns, and protocol revenue from RSR buybacks. The calculation tracks user interactions with Reserve contracts, applies dynamic fee rates, and splits fees between supply-side payments to stakers and protocol revenue.

## 2. Data sources

- **Token transfer events**: Parsed `Transfer` events from Ethereum, Base, and Arbitrum blockchains tracking deposits to and withdrawals from Reserve index and yield contracts
- **Reserve protocol events**: Contract event logs including `FeeRecipientsSet` (fee distribution configuration), `TVLFeeSet` (TVL-based fee rates), `MintFeeSet` (deposit fee rates), `RTokenCreated` (market creation), `FurnaceSet` (burn contract addresses), `RSRTraderSet` (trading contract addresses), and `TradeSettled` (RSR buyback transactions)
- **End-of-day price feeds**: Token price data for USD conversion across supported chains and tokens
- **Token metadata**: Decimal precision data for accurate token amount calculations

## 3. Step-by-step calculation

### Component A: Index product fees
- **Purpose**: Calculates fees generated by Reserve's index token products from TVL management and minting activities
- **Logic**: Token transfer events are filtered to capture deposits to and withdrawals from index token contracts identified through `GovernedFolioDeployed` events. These transfers are aggregated into cumulative balances per token and index contract, with end-of-day snapshots calculated and forward-filled for missing days. Two types of fees are calculated: TVL fees (daily balance × `tvl_fee_per_second` × 86,400 seconds) and mint fees (deposit amount × `mint_fee` rate). Fee rates are sourced from `TVLFeeSet` and `MintFeeSet` contract events. Total fees are then split between supply-side fees (paid to stakers) and protocol revenue using platform fee rates determined by `FeeRecipientsSet` events that specify what portion flows to staked token holders.
- **Key fields**: `amount` (transfer amounts), `tvl_fee_per_second`, `mint_fee`, `platform_fee_rate`, `fees_supply_side`, `revenue`

### Component B: Yield product supply-side fees  
- **Purpose**: Captures supply-side fees generated from Reserve's yield products through RToken burn mechanisms
- **Logic**: Token transfer events are filtered to identify burns from furnace contract addresses to null or dead addresses. Furnace addresses are identified through `FurnaceSet` contract events. These burn transactions represent fee collection from yield-generating activities where excess RTokens are burned, creating value for remaining token holders. All burn amounts are classified as supply-side fees.
- **Key fields**: `amount` (burn amounts), `furnace_address`, `fees_supply_side`

### Component C: Yield product revenue
- **Purpose**: Tracks protocol revenue generated from RSR token buybacks in yield products
- **Logic**: RSR buyback transactions are captured through `TradeSettled` events from RSR trader contracts. RSR trader addresses are identified via `RSRTraderSet` contract events. These buybacks represent protocol revenue where excess capital from yield operations is used to purchase and potentially burn RSR tokens, generating revenue for the Reserve protocol.
- **Key fields**: `amount` (buyback amounts), `rsr_trader_address`, `revenue`

### Final aggregation
- **Combining components**: The three fee components are combined using union operations, with index fees contributing both supply-side and revenue portions, yield supply-side fees contributing to the supply-side total, and RSR buybacks contributing to protocol revenue
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds and corrected for token decimal precision through the `convert_to_usd_and_correct_decimals` transformation
- **Time aggregation**: Fees are aggregated daily using day-truncated timestamps, with all components grouped by `timestamp`, `chain_id`, and `product_id`
- **Final calculation**: The final metric represents the sum of all USD-denominated fees across all Reserve products and chains, providing a comprehensive view of protocol fee generation

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

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

ReserveRSR

Fees

Fees

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