Traders exchange funds through request for quotation system built on 0x protocol and aggregated AMMs. Tokenlon collects a trading fee (revenue) from trades.

Tokenlon is a non-custodial exchange protocol built on Ethereum. Tokenlon was founded by imToken team and launched in 2018.

LON tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Tokelon's investors include IDG Capital, Qiming Venture Partners, Breyer Capital, etc.

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DEX aggregators

Tokenlon

# Tokenlon Fees Methodology

## 1. Overview

Tokenlon fees represent the total fees collected by the Tokenlon protocol from trading activities across its decentralized exchange aggregator platform. This metric captures protocol revenue generated from various swap mechanisms including automated market maker (AMM) wrappers, professional market maker (PMM) orders, request-for-quote (RFQ) trades, and limit orders. The calculation aggregates fees from multiple contract versions across Ethereum and Arbitrum networks, converting all amounts to USD for standardized reporting.

## 2. Data sources

The methodology relies on several key data sources:

- **Blockchain events**: Parsed contract events from Tokenlon's various trading contracts across Ethereum and Arbitrum networks
- **ZeroExchange events**: `Fill` events from Tokenlon's v1 ZeroExchange contracts on Ethereum, containing taker asset information and filled amounts
- **Swap events**: Multiple event types including `Swapped` events from AMMWrapper contracts, `FillOrder` events from PMM and RFQ contracts, and `LimitOrderFilledByProtocol` events from LimitOrder contracts
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision corrections
- **Transaction data**: Ethereum and Arbitrum transaction logs containing contract interaction details

## 3. Step-by-step calculation

### Component A: ZeroExchange fee calculation
- **Purpose**: Calculate fees from Tokenlon's v1 ZeroExchange contract trades on Ethereum
- **Logic**: Extract `Fill` events from ZeroExchange contracts where either the fee recipient address or taker address matches Tokenlon's identifier (`0xb9e29984fe50602e7a619662ebed4f90d93824c7`). Extract the token address from encoded `takerAssetData` by taking the substring starting at position 35. Calculate fees as 0.3% of the `takerAssetFilledAmount`
- **Key fields**: `takerAssetFilledAmount` for trade volume, `takerAssetData` for token identification, `feeRecipientAddress` and `takerAddress` for filtering

### Component B: Swap event fee calculation  
- **Purpose**: Calculate fees from various swap mechanisms across Tokenlon's contract ecosystem
- **Logic**: Process multiple event types from AMMWrapper, PMM, RFQ, and LimitOrder contracts across Ethereum and Arbitrum. For each event, calculate fees as the difference between the received amount and settled amount. Handle different field structures across event types, such as `receivedAmount` vs `makerAssetAmount` and `settleAmount` vs `takerTokenProfit`
- **Key fields**: `receivedAmount`, `settleAmount`, `makerAssetAmount`, `takerTokenProfit` depending on event type, with token addresses from various fields like `makerAssetAddr` or `takerToken`

### Component C: Native token handling
- **Purpose**: Standardize native token addresses across different chains
- **Logic**: Convert native token zero addresses (`0x0000000000000000000000000000000000000000`) to their corresponding wrapped token addresses. Map to WETH on Ethereum (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`) and WETH on Arbitrum (`0x82af49447d8a07e3bd95bd0d56f35241523fbab1`) for consistent price lookups and reporting
- **Key fields**: `token_address` after conversion from native to wrapped tokens

### Final aggregation
- **Combining components**: Union all fee calculations from ZeroExchange events and swap events into a single dataset, maintaining chain, timestamp, and token granularity
- **Currency conversion**: Convert all token amounts to USD using end-of-day price feeds, applying appropriate decimal corrections based on token metadata to ensure proper scaling
- **Time aggregation**: Truncate all timestamps to daily boundaries and group fees by day, chain, and token address
- **Final calculation**: Sum all fee amounts per day per token, filling any missing days with zero values to maintain complete time series coverage. Apply business line classification as "DEX Aggregator" and segment as "exchanges" and "dex_aggregator" for all records

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

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

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Fees

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Chain breakdown