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Reserve

# Reserve Revenue Methodology

## 1. Overview

Reserve revenue measures the daily USD value of protocol fees earned by Reserve across its index and yield products. This metric captures two main revenue streams: fees from Reserve index products (folios) including TVL-based management fees and mint fees, and revenue from RSR token buybacks in yield products. The calculation aggregates both revenue sources daily and converts all values to USD for consistent reporting across Ethereum, Base, and Arbitrum chains.

## 2. Data sources

The calculation relies on several types of blockchain and external data:
- **Reserve protocol events**: Parsed contract events including `FolioDeployer_GovernedFolioDeployed` for index product deployments, `RTokenFactory_RTokenCreated` for yield product creation, fee configuration events (`DTF_FeeRecipientsSet`, `DTF_MintFeeSet`, `DTF_TVLFeeSet`), and RSR trader configuration (`RTokenMain_RSRTraderSet`)
- **Token transfer events**: Parsed `Transfer` events from Ethereum, Base, and Arbitrum to track token flows into and out of Reserve index products
- **RSR buyback transactions**: `TradeSettled` events from RSR trader contracts showing token purchases made with protocol funds
- **External price data**: End-of-day token price feeds for USD conversion across all supported tokens and chains
- **Token metadata**: Token decimal information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Index product revenue
- **Purpose**: Calculate revenue from Reserve index products (folios) through TVL management fees and mint fees
- **Logic**: Track token transfers to identify deposits and withdrawals for each index product. Calculate cumulative balances by summing inflows and outflows over time, taking end-of-day snapshots. Apply two fee types: TVL fees calculated as daily balance multiplied by per-second fee rate times 86400 seconds per day, and mint fees calculated as deposit amount multiplied by mint fee rate. Split total fees between supply-side portion (retained by stakers) and protocol revenue portion using platform fee rates from fee recipient configurations
- **Key fields**: `amount` (token quantities), `tvl_fee_per_second` and `tvl_fee_per_year` (TVL fee rates), `mint_fee` (mint fee rate), `platform_fee_rate` (protocol's share of fees), `revenue` (protocol portion of total fees)

### Component B: Yield product revenue  
- **Purpose**: Calculate revenue from Reserve yield products (RTokens) through RSR token buybacks
- **Logic**: Track `TradeSettled` events from RSR trader contracts linked to yield products. Extract the bought token address and amount from each buyback transaction. Convert all buyback amounts to USD using end-of-day price feeds and aggregate daily by chain and product. Treat the total USD value of buybacks as protocol revenue since these represent excess funds being used to purchase RSR tokens
- **Key fields**: `buy` (token being purchased), `buyAmount` (quantity purchased), `amount` (USD-converted revenue value)

### Final aggregation
- **Combining components**: Union index product revenue and yield product revenue data, aggregating by timestamp, chain, and product to avoid double-counting across different revenue streams
- **Currency conversion**: Apply USD conversion using end-of-day price feeds with decimal correction for proper token amount normalization. Index revenue gets converted to USD after fee calculations, while yield revenue uses USD conversion on the raw buyback amounts
- **Time aggregation**: Group all revenue by daily timestamps using day-level truncation, ensuring consistent temporal boundaries across both revenue streams
- **Final calculation**: Sum all revenue amounts by day, chain, and product, filling any missing days with zero values to maintain continuous time series. Apply chain availability filtering to exclude data from periods when specific chains were not yet supported by Reserve protocol

*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.

ReserveRSR

Revenue

Revenue

Competitive landscape

Chain breakdown