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

SynFutures is a non-custodial decentralized exchange for perpetual contracts built on Base and multiple EVM-based chains. SynFutures was founded by Rachel Lin and was launched in 2021. 

SynFutures’ team & investors own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). SynFutures’ investors include Polychain Capital, Framework Ventures, Pantera Capital, etc.

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SynFutures

# SynFutures Fees Methodology

## 1. Overview

SynFutures fees represent the total daily trading fees collected by the protocol from perpetual futures trading activities. This metric combines both supply-side fees (paid to liquidity providers) and protocol revenue (retained by the protocol) across three versions of the SynFutures protocol operating on multiple blockchains. The calculation is based on notional trading volumes multiplied by version-specific fee rates.

## 2. Data sources

The calculation relies on several key data sources:
- **SynFutures trade events**: Parsed `Trade` events from SynFutures smart contracts across Ethereum, Arbitrum, BSC, and Polygon for v1 and v2; `Trade` and `Sweep` events from Base and Blast for v3
- **Trading pair creation events**: Factory contract events including `NewChainlinkPair`, `NewUniswapPair`, `NewBitcoinMiningDifficultyPair`, and `NewInstrument` events that establish trading pairs and quote token relationships
- **Fee parameter events**: `UpdateParam` events from v3 instruments that define dynamic trading and protocol fee rates
- **End-of-day price feeds**: Token price data for USD conversion of trading volumes
- **Token metadata**: Information for resolving token addresses and chain-specific configurations

## 3. Step-by-step calculation

### Component A: V1 notional trading volume calculation
- **Purpose**: Calculate USD-denominated trading volumes for SynFutures v1 across multiple chains and pair types
- **Logic**: Extract `Trade` events from Chainlink pairs, Uniswap pairs, and BTC futures contracts. Calculate notional volume using the formula: absolute value of `size` divided by 1e18, multiplied by `price` divided by 1e18. Join with trading pair dimensions to identify quote token addresses, then convert to USD using end-of-day price feeds matched on token address and daily timestamp
- **Key fields**: `size` (position size), `price` (execution price), `futures` (contract address for pair matching), `quote` (quote token address)

### Component B: V2 notional trading volume calculation  
- **Purpose**: Calculate USD-denominated trading volumes and extract explicit fees for SynFutures v2 on Polygon
- **Logic**: Process `Trade` events from the WMATIC-USDC pair contract. Calculate notional volume using the same size and price formula as v1, but also extract explicit `tradingFee` and `reserveFee` amounts directly from events. Convert volumes to USD and normalize fee amounts by dividing by 1e18
- **Key fields**: `takeSize` (position size), `price` (execution price), `tradingFee` (supply-side fee amount), `reserveFee` (protocol fee amount)

### Component C: V3 notional trading volume calculation
- **Purpose**: Calculate USD-denominated trading volumes with dynamic fee rates for SynFutures v3 on Base and Blast
- **Logic**: Extract `Trade` and `Sweep` events containing `entryNotional` values. Join with trading pair dimensions and fee parameter events to get current fee rates. Fee parameters are matched by instrument address, chain, and block timestamp ranges. Convert notional amounts to USD using price feeds, with special handling for cross-chain price lookups (pumpBTC uses Ethereum prices)
- **Key fields**: `entryNotional` (notional trade amount), `tradingFeeRatio` (supply-side fee basis points), `protocolFeeRatio` (protocol fee basis points)

### Component D: Fee parameter tracking for V3
- **Purpose**: Maintain time-series of fee rates for each V3 trading instrument
- **Logic**: Process `UpdateParam` events to track changes in trading and protocol fee basis points. Create time intervals between parameter updates, filtering out redundant updates where rates don't change. Each interval defines fee rates applicable from one update until the next
- **Key fields**: `tradingFeeRatio` (basis points), `protocolFeeRatio` (basis points), block timestamp ranges for applicability

### Component E: Supply-side fee calculation
- **Purpose**: Calculate daily fees paid to liquidity providers across all protocol versions
- **Logic**: For v1, multiply USD trading volume by 0.25% (25 basis points). For v2, use the explicit `tradingFee` amounts from events. For v3, multiply USD volume by `tradingFeeRatio` divided by 10,000 to convert basis points to decimal percentage. Aggregate by day, chain, and contract
- **Key fields**: Calculated `fees_supply_side` amounts in USD

### Component F: Protocol revenue calculation  
- **Purpose**: Calculate daily protocol fees retained by SynFutures across all versions
- **Logic**: For v1, apply time-based logic - multiply USD volume by 0.05% before September 29, 2021, and 0.01% afterward. For v2, use explicit `reserveFee` amounts. For v3, multiply USD volume by `protocolFeeRatio` divided by 10,000. Aggregate by day, chain, and contract
- **Key fields**: Calculated `revenue` amounts in USD

### Final aggregation
- **Combining components**: Union supply-side fees and protocol revenue into a single dataset, maintaining separate records for each component type
- **Currency conversion**: All amounts are already converted to USD through the price feed joins in earlier steps
- **Time aggregation**: Data is truncated to daily boundaries and aggregated by timestamp, chain, and product identifiers  
- **Final calculation**: The total fees metric represents the sum of daily supply-side fees and protocol revenue, providing complete trading fee visibility across all SynFutures protocol versions and supported chains

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

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

SynFuturesF

Fees

Fees

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