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Seamless Protocol

# Seamless Protocol Earnings Methodology

## 1. Overview

Seamless Protocol earnings represents the protocol's net profit, calculated as total revenue minus total expenses. This metric captures the protocol's profitability from its lending operations, flash loans, liquidations, and Morpho vault management activities, after accounting for operating expenses and token incentives. The calculation follows the standard accounting formula: Earnings = Revenue - Expenses.

## 2. Data sources

The calculation relies on multiple blockchain and external data sources:

- **Blockchain events**: Parsed event logs from Base blockchain including `RewardsController_RewardsClaimed_event`, `LendingPool_FlashLoan_event`, `LendingPool_LiquidationCall_event`, `LendingPool_MintedToTreasury_event`, and various `LendingPoolConfigurator` events
- **Transaction data**: Base token transfer events filtered by recipient addresses and token addresses to track fee movements and aToken transfers
- **State data**: Treasury accrual snapshots from Seamless Protocol's internal state tracking system
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimals and symbols
- **Configuration data**: Protocol parameter updates including reserve factors and liquidation protocol fee factors

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Aggregate all protocol revenue streams from lending operations, flash loans, liquidations, and Morpho vaults
- **Logic**: Revenue combines four distinct streams. Interest revenue starts with treasury accrual data representing cumulative interest earned, subtracts treasury mints to avoid double counting, then applies reserve factor calculations to determine the protocol's share versus supply-side earnings. Flash loan revenue takes flash loan premium amounts from `LendingPool_FlashLoan_event` logs and applies a 0.0004 fee split factor. Liquidation revenue identifies liquidation transactions from `LendingPool_LiquidationCall_event` logs, finds corresponding aToken transfers from liquidated users to treasury addresses, and applies liquidation protocol fee factors from configurator events. Morpho vault revenue tracks fee transfers to the designated fee recipient address from vault tokens, handling decimal corrections through price lookup mappings.
- **Key fields**: Treasury accrual amounts (`treasury_accruals`), mint amounts (`amount`), flash loan premiums (`premium`), aToken transfer values (`value`), liquidation fee factors (`liquidation_factor`), reserve factors (`reserve_factor`)

### Component B: Expenses calculation

- **Purpose**: Aggregate all protocol expenses including operating costs and token incentives
- **Logic**: Expenses combine two categories from reward claim events. Operating expenses include all rewards claimed from `RewardsController_RewardsClaimed_event` logs excluding governance token addresses. Token incentives include only rewards claimed for governance tokens with addresses `0x1c7a460413dd4e964f96d8dfc56e7223ce88cd85` and `0x998e44232bef4f8b033e5a5175bdc97f2b10d5e5`. Both expense types are aggregated daily by summing reward amounts across all eligible tokens and recipients.
- **Key fields**: Reward token addresses (`reward`), reward amounts (`amount`), governance token filter addresses

### Final aggregation

- **Combining components**: Revenue and expenses are calculated independently then subtracted using the `calculate_earnings` macro which performs Revenue - Expenses = Earnings
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds matched by chain, token address, and date. Token decimals are corrected using metadata from the token registry
- **Time aggregation**: All data is aggregated to daily boundaries using `timestamp_trunc` to day level, ensuring consistent time alignment across revenue and expense components
- **Final calculation**: The `finalize_metric_earnings` macro applies standard metric processing including schema validation, data quality checks, zero-filling for missing days, and chain availability filtering to produce the final earnings values in USD

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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