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Asset management

Seamless Protocol

# Seamless Protocol Fees Methodology

## 1. Overview

This metric calculates the total fees generated by Seamless Protocol across its lending, flash loan, liquidation, Morpho vault, and Leverage Token System (LTS) operations. The metric aggregates protocol revenue and supply-side fees from all business lines, providing a comprehensive view of the protocol's fee generation. The calculation combines fees from five distinct sources: interest-based lending fees, flash loan premiums, liquidation protocol fees, Morpho vault performance fees, and leverage token system fees.

## 2. Data sources

- **Lending pool events**: Parsed Base chain `FlashLoan`, `LiquidationCall`, and `MintedToTreasury` events from Seamless Protocol lending pools
- **Leverage manager events**: Parsed Base chain `Mint` and `Redeem` events from Seamless Protocol LeverageManager contracts
- **Token transfer logs**: Base chain `Transfer` events filtered for aToken transfers and specific fee recipient addresses
- **Pool configurator events**: Parsed Base chain `ReserveFactorChanged` and `LiquidationProtocolFeeChanged` events for fee parameter updates
- **Treasury accruals data**: External state data tracking cumulative treasury accruals from Seamless Protocol indexing system
- **Token price data**: End-of-day token price feeds for USD conversion across all supported assets
- **Token metadata**: Token contract information including decimal precision and symbol data

## 3. Step-by-step calculation

### Component A: Interest-based lending fees
- **Purpose**: Calculates fees generated from lending interest, split between protocol revenue and supply-side fees paid to liquidity providers
- **Logic**: Extracts treasury accruals from external state data and combines with actual treasury mint events from `MintedToTreasury` events. Calculates daily revenue as the difference between consecutive cumulative interest amounts. Applies reserve factors to split revenue: protocol keeps the reserve factor portion, while supply-side receives the remainder. Uses daily reserve factor values from `ReserveFactorChanged` events
- **Key fields**: `treasury_accruals` from state data, `amount` from mint events, `reserve_factor` from configurator events, calculated `revenue` and `fees_supply_side`

### Component B: Flash loan fees  
- **Purpose**: Captures fees charged for flash loan services
- **Logic**: Directly extracts premium amounts from `FlashLoan` events on Base chain. The `premium` field represents the fee charged to users for borrowing assets instantly without collateral. These fees go entirely to the protocol as revenue
- **Key fields**: `premium` amount from flash loan events, aggregated daily by token

### Component C: Liquidation protocol fees
- **Purpose**: Calculates fees collected when user positions are liquidated due to undercollateralization
- **Logic**: Identifies liquidation transactions through `LiquidationCall` events, then matches these with aToken transfers from liquidated users to treasury addresses. The transfer amount represents collateral seized. Applies liquidation protocol fee factors to split the seized amount between protocol revenue and fees returned to supply side. Uses daily liquidation factor values from `LiquidationProtocolFeeChanged` events
- **Key fields**: `collateralAsset` and user addresses from liquidation events, transfer `amount` from aToken movements, `liquidation_factor` for fee splitting

### Component D: Morpho vault performance fees
- **Purpose**: Tracks performance fees from Seamless Protocol's Morpho-integrated vault products
- **Logic**: Monitors token transfers to the designated fee recipient address `0x82c30b9db2e3b92ace4e1593b32890dcf8612d03` for Morpho vault tokens. Maps vault token addresses to underlying asset addresses for proper pricing. Applies decimal corrections to handle different token standards between vault tokens and underlying assets
- **Key fields**: Transfer `value` to fee recipient, `token_address` for vault tokens, decimal adjustments for pricing accuracy

### Component E: Leverage token system (LTS) fees
- **Purpose**: Aggregates fees from leverage token minting and redemption operations
- **Logic**: Processes `Mint` and `Redeem` events from LeverageManager contracts. For each event, sums the `token_fee` and `treasury_fee` components to get total fees. Maps leverage token addresses to underlying collateral addresses for consistent pricing. Captures fees from both user entry (mint) and exit (redeem) operations
- **Key fields**: `token_fee` and `treasury_fee` from leverage events, `shares` for position sizing, underlying `token` addresses

### Final aggregation
- **Combining components**: All five fee components are combined using union operations, with each maintaining daily timestamp granularity and consistent token address mappings
- **Currency conversion**: Fee amounts are converted to USD using end-of-day price feeds matched by chain, token address, and date. Decimal corrections are applied based on token metadata to ensure accurate USD values
- **Time aggregation**: All components are aggregated to daily boundaries using timestamp truncation. Events within each day are summed by token and fee type
- **Final calculation**: The final metric represents the sum of all protocol revenue and supply-side fees across all business lines, expressed in USD and aggregated daily. Zero-filling is applied to ensure continuous time series data for all active markets

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

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

Seamless ProtocolSEAM

Fees

Fees

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