# Venus Flux Revenue Methodology

## 1. Overview

Revenue measures the portion of fees retained by the Venus protocol from its Venus Flux product. This represents the protocol's share of interest paid by borrowers and a portion of the collateral seized during liquidations. For specific markets integrated with Instadapp Fluid on the BNB Chain, revenue also includes collections from the underlying liquidity layer. Revenue serves as a key indicator of the protocol's ability to generate income from its lending and liquidation services before operating expenses are considered.

## 2. Data sources

- **Blockchain events**: `AccrueInterest`, `NewReserveFactor`, and `LiquidateBorrow` events from `vBNB`, `VBep20Delegate`, and `VToken` contracts, plus `LogCollectRevenue` events from `FluidLiquidity` contracts, covering BNB Chain, Ethereum, Arbitrum, Base, and 4 other chains
- **External data**: End-of-day price feeds for all supported underlying assets

## 3. Step-by-step calculation

### Component A: Interest-based revenue extraction

- **Purpose**: To calculate the protocol's share of interest earned from borrowers across all lending markets.
- **Logic**: `AccrueInterest` events are parsed to extract the total interest accumulated within each market. These values are joined with `NewReserveFactor` events, which define the protocol's take rate (reserve factor) for a given market at a specific point in time. Protocol revenue is calculated by multiplying the accumulated interest by the applicable reserve factor.
- **Key fields**: `interestAccumulated`, `newReserveFactorMantissa`, and `lending_market_address`.

### Component B: Liquidation revenue extraction

- **Purpose**: To capture the protocol's portion of collateral seized during liquidation events.
- **Logic**: `LiquidateBorrow` events are identified to track the amount of collateral seized. A fixed 5% protocol take rate is applied to the seized amount. To accurately value the seized collateral in terms of the underlying asset, the amount is adjusted by the exchange rate parsed from market state data.
- **Key fields**: `seizeTokens`, `exchange_rate`, and `lending_market_address`.

### Component C: Fluid Liquidity Layer revenue extraction

- **Purpose**: To capture additional revenue generated from the Instadapp Fluid integration on the BNB Chain.
- **Logic**: `LogCollectRevenue` events are parsed from `FluidLiquidity` contracts to identify direct revenue collections. Additionally, uncollected revenue is tracked using state resolver data. The daily revenue contribution is calculated as the change in uncollected revenue plus any realized collections for that day.
- **Key fields**: `amount`, `token_address`, and `revenue` (from state resolver).

### Component D: Normalization and USD conversion

- **Purpose**: To standardize revenue values across different assets and chains for final reporting.
- **Logic**: All extracted revenue amounts are normalized by the decimal precision of the respective underlying assets. These values are then converted to USD by multiplying the daily totals by end-of-day asset price feeds. Final values are aggregated by day, chain, and product using UTC day boundaries.
- **Key fields**: `block_timestamp`, `token_address`, and `price_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.

Revenue

Lending

Lenders deposit funds into Venus and receive interest payments from borrowers (supply-side fees).

Venus is a non-custodial lending protocol built on BNB chain. Venus was founded by Joselito Lizarondo and launched in 2020.

XVS tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

Venus Flux

Revenue

Revenue

Chain breakdown