# Seamless Leverage Tokens Fees Methodology

## 1. Overview

Fees measures the total value paid by users to interact with Seamless Leverage Tokens. These fees are incurred during the opening (minting) and closing (redemption) of leveraged positions to facilitate the automated management of collateral and debt. This metric represents the total economic value generated specifically by the leverage token product suite and is used to track the cost of automated leverage for end users.

## 2. Data sources

- **Blockchain events**: `Mint` and `Redeem` events from `LeverageManager` contracts, covering Ethereum and Base
- **External data**: End-of-day price feeds for the underlying assets

## 3. Step-by-step calculation

### Component A: Leverage token mint fee extraction

- **Purpose**: Capture fees paid by users when entering a leveraged position.
- **Logic**: `Mint` events are parsed from `LeverageManager` contracts. For each event, the token fee and the treasury fee are extracted from the transaction data. These two components are summed to determine the total fee amount paid in the underlying asset for that specific transaction.
- **Key fields**: `token_fee`, `treasury_fee`, `token_address`

### Component B: Leverage token redemption fee extraction

- **Purpose**: Capture fees paid by users when exiting or redeeming a leveraged position.
- **Logic**: `Redeem` events are parsed from `LeverageManager` contracts. The token fee and treasury fee are extracted from the event action data. These fee values are summed to calculate the total amount paid by the user to exit the position.
- **Key fields**: `token_fee`, `treasury_fee`, `token_address`

### Component C: Aggregation and USD conversion

- **Purpose**: Normalize fee values and convert them into a unified currency for reporting.
- **Logic**: Total fees from both minting and redemption activities are aggregated on a daily basis per asset and chain. Asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. All calculations are performed using daily granularity with UTC day boundaries.

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

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

Fees

Lending

Seamless Leverage Tokens

Fees

Fees

Chain breakdown