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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Tokenlon

# Tokenlon Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total fees that are distributed to liquidity providers or other supply-side participants in a protocol. For Tokenlon, this metric is calculated as zero because Tokenlon currently retains all trading fees without distributing any portion to supply-side participants. The calculation establishes the infrastructure to track supply-side fee distributions but sets the value to zero to reflect Tokenlon's current fee structure.

## 2. Data sources

The calculation uses the following raw data sources:
- **Blockchain events**: Parsed trading events from Tokenlon contracts across multiple versions and chains, including `Fill`, `Swapped`, `FillOrder`, and `LimitOrderFilledByProtocol` events from Ethereum and Arbitrum
- **Transaction data**: Ethereum and Arbitrum transaction logs containing Tokenlon trading activity
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision correction
- **Contract events**: Specific Tokenlon contract addresses for fee recipient filtering (`0xb9e29984fe50602e7a619662ebed4f90d93824c7`)

## 3. Step-by-step calculation

### Component A: Fee event extraction
- **Purpose**: Identify and extract all fee-generating trading events from Tokenlon contracts
- **Logic**: The system processes multiple types of Tokenlon trading events across Ethereum and Arbitrum. For ZeroExchange `Fill` events on Ethereum, fees are calculated by applying a 0.3% fee tier to the `takerAssetFilledAmount` when the fee recipient or taker address matches the Tokenlon address filter. For other contract types including AMMWrapper `Swapped` events, PMM `FillOrder` events, RFQ `FillOrder` events, and Arbitrum LimitOrder events, fees are calculated as the difference between the `receivedAmount` and `settleAmount` fields. Native token addresses are normalized by converting zero addresses to their wrapped equivalents (WETH on Ethereum, WETH on Arbitrum).
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for event identification, `token_address` for the fee token, and calculated `amount` representing the fee collected

### Component B: Fee aggregation and conversion
- **Purpose**: Aggregate fee amounts by day and convert to standardized USD values
- **Logic**: Fee events are grouped by daily timestamps using timestamp truncation, with aggregation by chain, market sector, business segment, and token address. The system applies USD conversion using end-of-day price feeds matched to the fee collection date and token address. Token decimal correction is applied to normalize amounts to standard precision. All fee amounts are classified under the 'DEX Aggregator' business line and 'exchanges' market sector.
- **Key fields**: `timestamp` truncated to day boundaries, `chain_id` for blockchain identification, `token_address` for price lookup, and `fees` converted to USD with decimal correction

### Final aggregation
- **Combining components**: The aggregated USD fee amounts serve as the total fee baseline, but for supply-side fees specifically, all values are set to zero
- **Currency conversion**: USD conversion uses end-of-day price feeds matched by token address and date, with automatic decimal precision correction
- **Time aggregation**: Daily boundaries are established using timestamp truncation, ensuring consistent daily fee reporting
- **Final calculation**: Supply-side fees are explicitly set to zero for all time periods and chains, reflecting Tokenlon's current practice of retaining all trading fees rather than distributing any portion to supply-side participants

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

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

TokenlonLON

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown