Overcollateralized borrowers deposit funds into Synthetix and mint synthetic assets.

Synthetix is a non-custodial derivatives exchange protocol built on Ethereum. Synthetix was founded by Kain Warwick and launched in 2017.

SNX tokenholders own and govern the protocol. They currently take all of the total trading fees paid by traders (revenue). Synthetix's investors include Paradigm, Framework Ventures, Coinbase Ventures, etc.

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Derivative exchanges

Synthetix

# Synthetix Fees Methodology

## 1. Overview

The Synthetix fees metric measures the total exchange fees generated by the Synthetix protocol on a daily basis. This metric captures fees collected from synthetic asset trading activities by tracking sUSD token transfers to the protocol's designated fee collector address. The calculation aggregates fee collection events from both Ethereum and Optimism networks, converts amounts to USD, and provides daily totals that represent the protocol's fee revenue from derivatives trading activities.

## 2. Data sources

- **ERC20 token transfer events**: Parsed `Transfer` events from Ethereum and Optimism blockchains, specifically tracking sUSD token movements
- **Token metadata**: Token contract information including decimal places for proper amount normalization
- **End-of-day price feeds**: Token price data for USD conversion of fee amounts
- **Chain availability configuration**: Protocol deployment and operational status data across different blockchain networks

## 3. Step-by-step calculation

### Component A: Fee collection identification
- **Purpose**: Identify when exchange fees are collected by the Synthetix protocol
- **Logic**: The system monitors ERC20 `Transfer` events on both Ethereum and Optimism networks, filtering for transfers where the recipient address is the Synthetix fee collector (`0xfeefeefeefeefeefeefeefeefeefeefeefeefeef`) and the token being transferred is sUSD. On Ethereum, this uses the sUSD token contract at `0x57ab1ec28d129707052df4df418d58a2d46d5f51`, while on Optimism it uses `0x8c6f28f2f1a3c87f0f938b96d27520d9751ec8d9`. Each qualifying transfer represents a fee collection event from synthetic asset trading activity.
- **Key fields**: Block timestamp for timing, transaction hash and log index for uniqueness, chain identifier, token address, and transfer `value` representing the fee amount in raw token units

### Component B: Metadata standardization and daily aggregation
- **Purpose**: Standardize business classifications and aggregate fees by day
- **Logic**: Each fee collection event is classified with standardized metadata including business line as 'Synthetic assets', market sector as 'derivatives', business segment as 'perpetual', and protocol version as 'v1'. The block timestamps are truncated to daily boundaries to enable daily aggregation. All events maintain their original token amounts and addresses for subsequent processing.
- **Key fields**: Daily timestamp boundaries, standardized business classification fields, preserved `amount` values, and `token_address` for currency conversion

### Component C: Currency conversion and decimal correction
- **Purpose**: Convert raw token amounts to standardized USD values
- **Logic**: Raw sUSD token amounts are processed through a standardized conversion system that corrects for token decimal places and converts values to USD using end-of-day price feeds. This ensures all fee amounts are expressed in a consistent USD denomination regardless of the underlying token's decimal precision or the source blockchain.
- **Key fields**: USD-denominated `fees` amounts with proper decimal precision

### Final aggregation
- **Combining components**: Daily fee amounts are summed across both Ethereum and Optimism networks to provide total protocol fees for each day
- **Currency conversion**: All amounts are standardized to USD using end-of-day price feeds, with proper decimal correction applied based on the sUSD token specifications for each network
- **Time aggregation**: Fees are aggregated using daily boundaries determined by truncating block timestamps to the day level
- **Final calculation**: The final metric represents the sum of all USD-denominated sUSD transfers to the fee collector address within each day, with zero values filled for days without fee activity and results filtered based on chain availability configuration

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

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

SynthetixSNX

Fees

Fees

Competitive landscape

Chain breakdown