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SSV Network

# SSV Network Fees Methodology

## 1. Overview

Fees measures the total economic value paid by validators to utilize the SSV Network decentralized validator technology (DVT) infrastructure. These fees are composed of operator fees paid to node operators for running validators and network fees paid to the protocol. This metric is utilized to assess the overall economic activity and demand for SSV Network's secure, decentralized staking infrastructure. Fees are accrued daily based on active validator counts and fee rates, denominated in either the SSV asset or Wrapped Ether (WETH) depending on the network upgrade status, and converted to USD.

## 2. Data sources

- **Blockchain events**: `ClusterLiquidated`, `ClusterReactivated`, `ClusterMigratedToETH`, `FeesSynced`, `NetworkFeeUpdated`, `OperatorAdded`, `OperatorFeeExecuted`, `OperatorRemoved`, `ValidatorAdded`, and `ValidatorRemoved` events from `SSVNetwork` contracts, covering Ethereum
- **External data**: End-of-day price feeds for SSV and Wrapped Ether (WETH) assets

## 3. Step-by-step calculation

### Component A: Validator and cluster state tracking

- **Purpose**: Track the active validator count per operator and network-wide.
- **Logic**: Validator additions and removals are recorded by parsing `ValidatorAdded` and `ValidatorRemoved` events. Active validator counts are adjusted by parsing `ClusterLiquidated`, `ClusterReactivated`, and `ClusterMigratedToETH` events to account for cluster state changes, where fee accrual is halted for liquidated clusters and resumed for reactivated or migrated clusters. Daily validator deltas are calculated per operator and network-wide. At the network upgrade block, accrual is temporarily halted for all active validators until migration is completed.
- **Key fields**: `owner`, `operator_ids`, `validator_count`, `cluster_active`, `block_timestamp`

### Component B: Operator fee accrual

- **Purpose**: Calculate the daily fees accrued by node operators.
- **Logic**: Fee rates per block for each operator are tracked by parsing `OperatorAdded`, `OperatorFeeExecuted`, and `OperatorRemoved` events. At the network upgrade block, the fee rate for all active operators with a non-zero fee is reset to a constant migrated operator fee. Daily operator fees are calculated by multiplying the active validator count per operator by the operator's active fee rate and the daily block constant. Prior to the network upgrade block, operator fees are denominated in the SSV asset; after the upgrade block, they are denominated in Wrapped Ether (WETH).
- **Key fields**: `operator_id`, `fee`, `block_timestamp`

### Component C: Network fee accrual

- **Purpose**: Calculate the daily fees accrued by the protocol network.
- **Logic**: Prior to the network upgrade date, the network fee rate per validator per block is tracked by parsing `NetworkFeeUpdated` events, and daily network fees are calculated by multiplying the network-wide active validator count by the network fee rate and the daily block constant. After the network upgrade date, network fees are extracted directly from the synced fee amounts in `FeesSynced` events. Network fees are denominated in the SSV asset before the upgrade and in Wrapped Ether (WETH) after the upgrade.
- **Key fields**: `fee`, `amount`, `block_timestamp`

### Component D: Normalization and USD conversion

- **Purpose**: Combine operator and network fees, normalize by decimal precision, and convert to USD.
- **Logic**: Daily operator fees and network fees are summed. Aggregated fee amounts are normalized by decimal precision. Normalized daily fee amounts are multiplied by the end-of-day prices of the respective fee assets (SSV or WETH) to obtain the final daily fee value in USD.
- **Key fields**: `fees`, `token_address`, `timestamp`

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

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

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