# Reserve Yield Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that Reserve Yield retains from its ecosystem of yield-bearing assets. For RTokens, revenue is generated through RSR buybacks triggered by excess collateral yield. For Folios (Index tokens), revenue is derived from minting fees and management fees (TVL-based), specifically the portion of these fees allocated to the protocol's staked assets rather than external recipients.

## 2. Data sources

- **Blockchain events**: `TradeSettled` events from `RSRTrader` contracts, `RSRTraderSet` events from `RTokenMain` contracts, `RTokenCreated` events from `RTokenFactory` contracts, `GovernedFolioDeployed` events from `FolioDeployer` contracts, `MintFeeSet`, `TVLFeeSet`, and `FeeRecipientsSet` events from `DTF` contracts, and ERC-20 `Transfer` events, covering Ethereum, Base, Arbitrum, and BSC
- **External data**: End-of-day price feeds for RSR and various collateral assets

## 3. Step-by-step calculation

### Component A: RToken market discovery and buyback tracking

- **Purpose**: Captures revenue generated through RSR buyback mechanisms for Yield-branded RTokens
- **Logic**: Markets are identified via `RTokenCreated` events from `RTokenFactory` contracts, excluding specific stablecoin addresses. The active trader for each market is determined by parsing `RSRTraderSet` events from `RTokenMain` contracts. Revenue is then calculated by summing the amounts from `TradeSettled` events emitted by the identified `RSRTrader` contracts.
- **Key fields**: `in_buyAmount` (buyback quantity), `address` (trader identification), `in_rToken` (market identification)

### Component B: Folio market and fee rate discovery

- **Purpose**: Identifies Index-based products and their associated fee configurations
- **Logic**: Folio markets are discovered via `GovernedFolioDeployed` events from `FolioDeployer` contracts. Fee rates for minting and AUM (TVL) are extracted from `MintFeeSet` and `TVLFeeSet` events from `DTF` contracts. The protocol take rate is determined by parsing `FeeRecipientsSet` events from `DTF` contracts, where the protocol's share is defined as the sum of portions allocated to the market's staked token address.
- **Key fields**: `in_newFee` (mint fee rate), `in_feeAnnually` (AUM fee rate), `in_recipients` (fee distribution array)

### Component C: Index fee calculation

- **Purpose**: Calculates the gross fees generated by Folio products from minting activity and asset management
- **Logic**: Mint fees are calculated by applying the current mint fee rate to the value of ERC-20 `Transfer` events where the recipient is the null address. TVL fees are calculated by applying the annual fee rate (normalized to a per-second value) to the cumulative daily balances of assets held within the Folio contracts. Balances are derived by aggregating ERC-20 token transfers and applying a fill-forward logic to ensure daily continuity.
- **Key fields**: `value` (transfer amounts), `tvl_fee_per_second` (management rate), `amount` (cumulative balance)

### Component D: Revenue attribution and USD conversion

- **Purpose**: Isolates the protocol's share of fees and normalizes all revenue streams to USD
- **Logic**: For Folio products, protocol revenue is calculated by multiplying gross fees by the platform take rate identified in Component B. For RToken products, buyback amounts are taken in full. All captured amounts are normalized by asset decimal precision and multiplied by end-of-day price feeds. Final values are aggregated by day and chain.
- **Key fields**: `platform_fee_rate` (protocol share), `revenue` (retained value)

*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.