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 Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of trading fees that goes to liquidity providers and other supply-side participants in the SynFutures perpetual trading protocol. This metric measures the daily USD value of fees earned by those who provide liquidity and support the trading infrastructure across three versions of the SynFutures protocol. The calculation varies by protocol version, using different fee structures ranging from fixed percentages to dynamic fee parameters based on market conditions.

## 2. Data sources

The calculation draws from multiple blockchain data sources across different networks and protocol versions:

- **Trade execution events**: Parsed `Trade` events from SynFutures smart contracts across Ethereum, Arbitrum, BSC, Polygon, Base, and Blast networks, including specialized contracts like `FuturesChainlinkPair`, `FuturesUniswapPair`, `BTCFutures`, `WMATIC-USDC-DEXV2`, and `Instrument` contracts
- **Trading pair creation events**: Parsed `NewChainlinkPair`, `NewUniswapPair`, `NewUnderlying`, and `NewInstrument` events that establish trading pair configurations and token address mappings
- **Fee parameter events**: Parsed `UpdateParam` events from v3 Instrument contracts that define dynamic trading fee rates and protocol fee rates
- **Sweep events**: Parsed `Sweep` events from v3 Instrument contracts representing additional trading activity
- **End-of-day price feeds**: Token price data for USD conversion of notional trading volumes
- **Token metadata**: Contract addresses and native token mappings for different blockchain networks

## 3. Step-by-step calculation

### Component A: SynFutures v1 supply-side fees
- **Purpose**: Calculate supply-side fees for the original SynFutures protocol using a fixed fee split percentage
- **Logic**: Extract `Trade` events from `FuturesChainlinkPair`, `FuturesUniswapPair`, and `BTCFutures` contracts across Ethereum, Arbitrum, BSC, and Polygon. Calculate notional trading volume by taking the absolute value of trade size divided by 1e18, multiplied by trade price divided by 1e18. Join with trading pair dimensions derived from Factory creation events to obtain token addresses, handling null quote addresses by substituting chain-specific native token addresses. Apply a fixed supply-side fee rate of 0.25% to the calculated notional volume.
- **Key fields**: `trade_size` and `trade_price` from Trade events, `quote` token addresses from Factory events, calculated `amount` representing notional volume

### Component B: SynFutures v2 supply-side fees  
- **Purpose**: Calculate supply-side fees for SynFutures v2 using explicit trading fees from contract events
- **Logic**: Extract `Trade` events from the `WMATIC-USDC-DEXV2` contract on Polygon, capturing trade size, trade price, and explicit trading fee amounts. Calculate notional volume using the same methodology as v1. Convert trading fees from wei to standard units by dividing by 1e18. Join with Router `NewUnderlying` events to obtain token addresses and account names for trading pairs. Use the explicit trading fee amount directly as the supply-side fee without additional percentage calculations.
- **Key fields**: `takeSize`, `price`, `tradingFee` from Trade events, `underlying` and `quote` addresses from Router events

### Component C: SynFutures v3 supply-side fees
- **Purpose**: Calculate supply-side fees for SynFutures v3 using dynamic fee parameters and USD-converted notional volumes
- **Logic**: Extract `Trade` and `Sweep` events from Instrument contracts on Base and Blast networks, using `entryNotional` as the trade size. Join with Gate `NewInstrument` events to obtain trading pair information including token addresses and account names, with special price chain mapping logic for cross-chain tokens. Perform time-range joins with `UpdateParam` events to obtain valid trading fee basis points for each trade based on block timestamp. Convert notional amounts to USD using end-of-day price feeds matched by timestamp, token address, and price chain. Calculate supply-side fees by multiplying the USD notional amount by trading fee basis points divided by 10,000.
- **Key fields**: `entryNotional` from Trade/Sweep events, `trading_fee_basis_points` from UpdateParam events, USD prices from external price feeds

### Final aggregation
- **Combining components**: Union all three protocol version components using standardized schema with common fields including timestamp, chain, business line, account information, and calculated fees
- **Currency conversion**: V1 and v2 fees remain in token units while v3 fees are pre-converted to USD using price feeds
- **Time aggregation**: All components truncate timestamps to daily boundaries and use 'day' as the timestamp grain
- **Final calculation**: The final supply-side fee value is the sum of: (v1 notional volume × 0.0025) + (v2 explicit trading fees) + (v3 USD notional volume × trading fee basis points ÷ 10,000), aggregated by day, chain, and trading pair

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

Portion of fees distributed to service providers or supply-side participants.

SynFuturesF

Supply-side fees

Supply-side fees

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