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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Synthetix

# Synthetix Revenue Methodology

## 1. Overview

The Synthetix revenue metric measures the total fees earned by the protocol from synthetic asset trading activities. This metric captures exchange fees collected when users trade synthetic assets (synths) on Synthetix. The calculation is based on sUSD token transfers to Synthetix's fee collector address across Ethereum and Optimism networks. For Synthetix, fees directly equal revenue because liquidity providers are also SNX stakers, meaning there are no supply-side fees to subtract from total fees.

## 2. Data sources

- **Blockchain events**: Parsed `Transfer` events from Ethereum and Optimism networks, specifically tracking sUSD token movements
- **Token metadata**: Token contract information including decimal precision for accurate amount calculations
- **External data**: End-of-day token price feeds for USD conversion of sUSD amounts
- **Protocol addresses**: Synthetix fee collector contract address (`0xfeefeefeefeefeefeefeefeefeefeefeefeefeef`) and sUSD token addresses on both networks

## 3. Step-by-step calculation

### Component A: Raw fee collection tracking
- **Purpose**: Identify and extract sUSD tokens transferred to Synthetix's fee collector as exchange fees
- **Logic**: The system monitors parsed `Transfer` events on both Ethereum and Optimism networks, filtering for transfers where the recipient address matches Synthetix's fee collector contract (`0xfeefeefeefeefeefeefeefeefeefeefeefeefeef`). On Ethereum, it tracks transfers of the sUSD token at address `0x57ab1ec28d129707052df4df418d58a2d46d5f51`, while on Optimism it monitors the sUSD token at `0x8c6f28f2f1a3c87f0f938b96d27520d9751ec8d9`. Each transfer represents fees collected from synthetic asset exchanges.
- **Key fields**: The `block_timestamp` for timing, `transaction_hash` and `log_index` for uniqueness, `token_address` for sUSD identification, and `value` containing the raw fee amount

### Component B: USD conversion and daily aggregation
- **Purpose**: Convert raw sUSD amounts to USD values and aggregate by day for consistent reporting
- **Logic**: Raw sUSD token amounts are processed through decimal correction using token metadata to ensure proper precision. The corrected amounts are then converted to USD using end-of-day price feeds for sUSD. Transactions are grouped by day using timestamp truncation to create daily aggregates. Each record is categorized with business metadata including derivatives as the market sector, perpetual as the business segment, and synthetic assets as the business line.
- **Key fields**: The `timestamp` truncated to daily boundaries, `amount` representing the USD-converted fee value, and classification fields for business categorization

### Final aggregation
- **Combining components**: Daily sUSD fee amounts in USD are summed across both Ethereum and Optimism networks to create total daily fee collections
- **Currency conversion**: All amounts are converted to USD using end-of-day sUSD price feeds with proper decimal adjustment based on token metadata
- **Time aggregation**: Fees are aggregated on daily boundaries using timestamp truncation to create consistent daily revenue figures
- **Final calculation**: The total fees directly become revenue since Synthetix liquidity providers are also SNX stakers, meaning the protocol retains all collected fees as revenue with no supply-side distribution required. The final metric represents the sum of all sUSD fees collected daily across supported networks, converted to USD.

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

SynthetixSNX

Revenue

Revenue

Competitive landscape

Chain breakdown