Liquidity providers deposit funds into Thetanuts and receive option premiums from traders (supply-side fees).

Thetanuts is a non-custodial DeFi Options Vault (DOV) protocol built on Ethereum, Fantom, Polygon, and other blockchains. Thetanuts was founded by Dexter Song and launched in Dec 2021.

Thetanuts team own and govern the protocol. Their investors include Deribit Exchange, QCP Capital, Jump Crypto, etc.

twitter

discord

website

Asset management

Thetanuts

# Thetanuts Supply-side fees Methodology

## 1. Overview

Supply side fees for Thetanuts represent the premium amounts collected by the protocol's option vaults when new option epochs begin. These premiums are paid by users who purchase options from the vaults and constitute the primary revenue stream that is distributed to vault depositors (supply side participants). The metric aggregates these premium collections across all Thetanuts vaults on supported chains and converts them to USD values for standardized reporting.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Blockchain events**: Parsed `NewEpoch` events from Thetanuts vault contracts across Arbitrum, Avalanche, BSC, Ethereum, Fantom, and Polygon networks
- **Vault configuration data**: Hardcoded mapping of vault contract addresses to their underlying token addresses across all supported chains
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision handling

## 3. Step-by-step calculation

### Component A: Premium extraction
- **Purpose**: Extract premium amounts from blockchain events when new option epochs begin
- **Logic**: Query `NewEpoch` events emitted by Thetanuts vault contracts across six supported chains (Arbitrum, Avalanche, BSC, Ethereum, Fantom, Polygon). Each event contains an `_premium` field representing the premium amount collected when a new options epoch starts. The events are filtered to distinct occurrences and enriched with chain identifiers and business classification metadata (Asset management business line, asset_management market sector, yield_aggregator business segment)
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `address` as the vault contract address, and `_premium` as the premium amount in native token units

### Component B: Vault and token mapping  
- **Purpose**: Map vault contract addresses to their underlying token addresses
- **Logic**: Join premium events with a predefined configuration table that maps each vault's contract address to its underlying token address. This configuration includes vault details like chain, vault name (e.g., 'Covered Call ETH USD A', 'Put Vault BTC USD A'), vault contract address, and the corresponding token contract address. The mapping covers covered call and put vaults for major assets including ETH, BTC, AVAX, BNB, MATIC, FTM, ADA, BCH, and SOL across the supported chains
- **Key fields**: `account_address` for matching vault contracts, `token_address` for identifying the underlying token, and `chain` for chain-specific mappings

### Component C: USD conversion and decimal correction
- **Purpose**: Convert premium amounts from native token units to standardized USD values
- **Logic**: Apply token decimal correction to normalize amounts to their proper scale, then convert to USD using end-of-day token price feeds. The conversion process handles the varying decimal precision of different tokens (e.g., USDC uses 6 decimals, WETH uses 18 decimals) and applies the appropriate exchange rates based on the token address and timestamp
- **Key fields**: `amount` as the corrected premium value, `token_address` for price lookup, and `timestamp` for rate timing

### Final aggregation
- **Combining components**: Premium amounts are aggregated by day using timestamp truncation to the day level, grouped by chain, market classification dimensions, and token address
- **Currency conversion**: All premium amounts are converted to USD using end-of-day token price feeds with proper decimal adjustment applied before conversion
- **Time aggregation**: Daily aggregation boundaries are set using timestamp truncation, with the `timestamp_grain` field set to 'day'
- **Final calculation**: The aggregated daily premium amounts in USD represent the supply side fees, which are then passed through with finalization logic that ensures schema consistency, validates dimensions, and applies gap-filling strategies to maintain complete time series data

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

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

Thetanuts

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown