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 Revenue Methodology

## 1. Overview

The Ribbon revenue metric measures the total fees collected by Ribbon's decentralized asset management vaults across Ethereum and Avalanche. This metric captures revenue from three fee types: performance fees (charged on profits), management fees (charged on assets under management), and withdrawal fees (charged when users exit positions). The calculation aggregates fees from multiple vault versions and types, converts them to USD, and presents daily totals with zero-filling for complete time series data.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Blockchain events**: Parsed Ethereum and Avalanche smart contract events from Ribbon's vault contracts, including `CollectVaultFees`, `CollectPerformanceFee`, `CollectManagementFee`, and `Withdraw` events
- **Transaction data**: Ethereum token transfer records used to identify token addresses for treasury vault fee collections
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal correction
- **Configuration data**: Hardcoded vault configurations mapping vault contract addresses to token addresses, names, versions, and chains
- **Exclusion lists**: Specific transaction hashes involved in overcharge incidents that are excluded from revenue calculations

## 3. Step-by-step calculation

### Component A: Theta and earn vault fees
- **Purpose**: Captures performance and management fees from theta strategy vaults and earn vaults
- **Logic**: Extracts `CollectVaultFees` events from Ethereum theta vaults, Ethereum earn vaults, and Avalanche theta vaults. For each event, the performance fee is taken directly from the `performanceFee` field, while the management fee is calculated as the total `vaultFee` minus the `performanceFee`. Events are joined with vault dimension data to retrieve token addresses and vault metadata. Transactions identified as overcharge incidents are excluded from the calculation.
- **Key fields**: `performanceFee` amount, calculated `managementFee` (vaultFee - performanceFee), vault `address`, `block_timestamp`, `transaction_hash`

### Component B: Treasury vault fees  
- **Purpose**: Captures performance and management fees from treasury strategy vaults using separate event types
- **Logic**: Processes two distinct event types - `CollectPerformanceFee` events containing only performance fees, and `CollectManagementFee` events containing only management fees. Since these events don't directly specify token addresses, they are joined with Ethereum token transfer records where the fee recipient matches the transfer destination and the vault address matches the transfer source within the same transaction. This join identifies which token was used for the fee payment.
- **Key fields**: `performanceFee` from performance fee events, `managementFee` from management fee events, `token_address` from joined transfer records

### Component C: Version 1 withdrawal fees
- **Purpose**: Captures withdrawal fees from legacy version 1 theta vaults  
- **Logic**: Extracts `Withdraw` events from Ethereum version 1 theta vaults, capturing the withdrawal fee charged to users exiting their positions. These fees are treated as a separate revenue stream and mapped to withdrawal fee amounts while setting performance and management fees to null.
- **Key fields**: `fee` amount from withdrawal events, vault `address`, user withdrawal details

### Final aggregation
- **Combining components**: All fee components are combined using union operations, with performance fees, management fees, and withdrawal fees maintained as separate columns. For the final revenue calculation, performance and management fee amounts are summed together using coalesce functions to handle null values, while withdrawal fees are excluded from post-v1 revenue calculations by filtering out version 1 data.
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds matched by token address and date, with decimal places corrected based on token metadata before conversion
- **Time aggregation**: Events are aggregated to daily boundaries using timestamp truncation, with all transactions within the same day contributing to that day's total revenue
- **Final calculation**: Daily revenue equals the sum of coalesced performance fee amounts plus coalesced management fee amounts for all non-version-1 transactions, converted to USD and aggregated by day, with missing dates filled with zero values

*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.

Ribbon FinanceRBN

Revenue

Revenue

Competitive landscape

Chain breakdown