Liquidity providers deposit funds into Ribbon Protocol and receive option premiums from traders & withdrawal fees from other liquidity providers (supply-side fees).

Ribbon Finance is a non-custodial asset management protocol built on Ethereum. Ribbon Finance was founded by Julian Koh & Ken Chan and launched in 2021.

RBN tokenholders own and govern the protocol. They currently take a cut of the total premiums and management fees paid by liquidity providers (revenue).

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Ribbon Finance

# Ribbon Finance Fees Methodology

## 1. Overview

Ribbon Finance fees represent the total fees generated by Ribbon's structured product vaults across Ethereum and Avalanche networks. This metric captures revenue from various fee types including performance fees (taken from vault yields), management fees (ongoing operational fees), and withdrawal fees (charged when users exit positions). The calculation combines direct fee collections with reverse-engineered yield calculations to provide a comprehensive view of Ribbon's fee generation across different vault types and product versions.

## 2. Data sources

- **Vault contract events**: Parsed `CollectVaultFees`, `CollectPerformanceFee`, `CollectManagementFee`, and `Withdraw` events from Ribbon's vault contracts on Ethereum and Avalanche networks
- **Token transfer events**: Ethereum `Transfer` events used to identify fee recipients and amounts for treasury vault operations
- **Performance fee configuration events**: Parsed `PerformanceFeeSet` events from various Ribbon vault contracts that establish fee cut percentages
- **End-of-day token price feeds**: USD conversion rates for all tokens involved in fee calculations
- **Token metadata**: Decimal precision information for accurate amount calculations
- **Vault registry data**: Hardcoded vault addresses, token mappings, and vault metadata including names, chains, and versions

## 3. Step-by-step calculation

### Component A: Direct vault fee collection
- **Purpose**: Captures fees directly collected by Ribbon vaults through contract events
- **Logic**: Extracts fee collection events from Theta and Earn vaults on Ethereum and Avalanche networks. For standard vault events, separates total vault fees into withdrawal fees (charged on exits), performance fees (cut of profits), and management fees (total minus performance fees). For treasury vaults, combines separate performance and management fee events with corresponding token transfer records to identify fee amounts and recipients. Filters out transactions involved in a known overcharge bug using a predefined transaction hash list. Joins with vault registry data to add vault metadata including names, token addresses, and version information.
- **Key fields**: `withdrawal_fee_amount`, `perf_fee_amount`, `mgmt_fee_amount`, `token_address`, `account_address`, `account_name`

### Component B: EarnVault yield calculation
- **Purpose**: Calculates total yields generated by EarnVault products by reverse-engineering from collected performance fees
- **Logic**: Takes performance fees collected from EarnVault types and calculates the original yield amounts using hardcoded fee percentages. For the USDC rEARN vault, applies a 15% fee rate, meaning performance fees represent 15% of total yields. For the stETH rEARN vault, applies a 10% fee rate. Calculates total yield by dividing performance fees by the fee percentage, then subtracts the performance fee to get the yield portion that users retained.
- **Key fields**: `amount` (calculated yield), `account_address`, `token_address`

### Component C: Standard vault yield calculation
- **Purpose**: Calculates yields for non-EarnVault products using dynamic performance fee cuts
- **Logic**: For each vault's performance fees, looks up the vault's configured performance fee cut percentage from `PerformanceFeeSet` events. If a vault has a configured fee cut (e.g., 10%), divides the performance fee by that percentage to get total yield, then subtracts the performance fee to get the user's yield portion. If no fee cut is configured for a vault, defaults to 10% fee cut assumption. Uses forward-filling to apply the most recent fee cut configuration to periods where no new configuration was set.
- **Key fields**: `amount` (calculated yield), `performance_fee_cut`, `vault_account_address`

### Final aggregation
- **Combining components**: Unions all three fee components (direct vault fees, EarnVault yields, and standard vault yields) into a single dataset. Each component contributes different aspects of Ribbon's fee generation, with direct fees representing actual revenue and yield calculations representing the economic value created for users.
- **Token standardization**: Maps yvUSDC and yvUSDC v2 token addresses to the base USDC token address for consistent reporting across vault versions.
- **Currency conversion**: Converts all fee amounts to USD using end-of-day token prices, applying appropriate decimal corrections based on each token's precision (typically 18 decimals for most tokens, 6 for USDC).
- **Time aggregation**: Truncates all timestamps to daily boundaries and aggregates fees by day, transaction, and vault.
- **Final calculation**: Sums withdrawal fees, performance fees, and management fees for direct vault collections, while yield calculations represent the economic value generated. The final metric represents total fees in USD per day across all Ribbon vaults and products.

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

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

Ribbon FinanceRBN

Fees

Fees

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