Liquidity providers deposit funds into Sushiswap and receive trading fees from traders (supply-side fees).

Sushiswap is a non-custodial exchange protocol built on Ethereum (originally a fork of Uniswap). Sushiswap was founded by a pseudonym Chef Nomi and launched in 2020.

SUSHI tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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SushiSwap

# SushiSwap Earnings Methodology

## 1. Overview

Earnings measures the net value SushiSwap retains after subtracting all expenses from its revenue. Revenue is generated from protocol fees collected on trading and flash loan activities across SushiSwap V2 and SushiSwap V3 pools. Expenses consist of SUSHI incentives distributed through liquidity mining programs. This metric reflects on-chain profitability and provides insight into the financial sustainability of the protocol.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pair` and `Pool` contracts, `Flash` and `SetFeeProtocol` events from `Pool` contracts, `PairCreated` and `PoolCreated` events from `Factory` contracts, `Harvest` events from `MasterChef`, `MasterChefV2`, and `MiniChef` contracts, and ERC-20 `Transfer` events, covering Ethereum, Polygon, Avalanche, Arbitrum, and 6 other chains
- **External data**: End-of-day price feeds and asset metadata
- **Filter data**: Manually curated denylists for trading pairs with limited price feed support and assets used in internal liquidity incentive transactions

## 3. Step-by-step calculation

### Component A: Revenue from trading fees

- **Purpose**: Calculate protocol revenue from trading fees on SushiSwap V2 and SushiSwap V3 pools
- **Logic**: Swap events are extracted from `Swap` events from `Pair` and `Pool` contracts. For V2, asset amount changes are calculated as the difference between incoming and outgoing amounts for both assets. For V3, direct asset amounts are used. User addresses are joined from transaction records. Denylisted V3 trading pairs are excluded. Asset amounts are normalized by decimal precision using trading pair metadata. Values are converted to USD using end-of-day price feeds, taking the lesser of the two asset USD values to prevent price manipulation. Trading volume is multiplied by the pool fee tier (0.3% for V2, dynamic for V3 based on pool creation events). The protocol fee share is applied: a fixed 1/6 share is applied for V2, and a dynamic share is applied for V3 using the daily protocol fee tier, which is determined by taking the last protocol fee update of each day from `SetFeeProtocol` events and filling it forward to subsequent days.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` for V2; `amount0`, `amount1` for V3; `fee` from pool creation; `feeProtocol0New`, `feeProtocol1New` from protocol fee updates

### Component B: Revenue from flash loan fees

- **Purpose**: Calculate protocol revenue from flash loan fees on SushiSwap V3 pools
- **Logic**: Flash loan events are extracted from `Flash` events from `Pool` contracts. User addresses are joined from transaction records. Denylisted trading pairs are excluded. Flash loan amounts are aggregated daily, normalized by decimal precision, and converted to USD using end-of-day price feeds by summing both asset USD values. Flash loan volume is multiplied by the pool fee tier, and the daily protocol fee tier filled forward from `SetFeeProtocol` events is applied.
- **Key fields**: `amount0`, `amount1` from flash events; `sender` for contract user; `fee` and `feeProtocol` tiers

### Component C: Expenses from asset incentives

- **Purpose**: Calculate protocol expenses from SUSHI distributions in liquidity mining programs
- **Logic**: SUSHI distributions are extracted from `Harvest` events from `MasterChef`, `MasterChefV2`, and `MiniChef` contracts. Legacy incentive distributions on Ethereum are captured by extracting ERC-20 `Transfer` events from the original MasterChef contract address, filtering out transactions involving denylisted assets to exclude internal operations. Contract addresses are validated by joining with liquidity incentive account metadata. SUSHI amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. Values are aggregated daily across all chains and incentive programs.
- **Key fields**: `amount` from harvest events; `value` from token transfers; SUSHI asset addresses

### Component D: Final aggregation and earnings calculation

- **Purpose**: Combine revenue and expenses to calculate net earnings
- **Logic**: Trading fee revenue and flash loan fee revenue are summed to calculate total revenue. Asset incentives are aggregated to represent total expenses. Total daily expenses are subtracted from total daily revenue to calculate net daily earnings. Daily granularity is maintained with UTC day boundaries, and zero-filling is applied for dates with no activity. Chain availability filters are applied to finalize the metric.

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

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

SushiSwapSUSHI

Earnings

Earnings

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