Liquidity providers deposit funds into Verse and receive trading fees from traders (supply-side fees).

Verse is an automated market maker-based decentralized exchange built on Ethereum. Verse was created by Bitcoin.com, and launched in 2022.

VERSE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Verse's investors include Blockchain.com, KuCoin Ventures and others.

github

twitter

discord

etherscan

website

Exchanges (DEX)

Verse

# Verse Fees Methodology

## 1. Overview

VerseDX fees represent the total trading fees collected by the decentralized exchange based on trading volume and predetermined fee tiers. The metric calculates daily fees by multiplying the USD trading volume by the applicable fee rate for each trading pair. VerseDX V1 uses a uniform 0.3% fee structure across all trading pairs.

## 2. Data sources

The calculation relies on several types of raw blockchain data and external feeds:

- **Factory creation events**: Parsed Ethereum `SwapsFactory_PairCreated_event` logs that establish trading pairs with token addresses and fee structures
- **Swap transaction logs**: Parsed Ethereum `SwapsPair_Swap_event` logs containing individual trade details including token amounts exchanged
- **Ethereum transaction records**: Transaction metadata used to identify the actual users initiating trades
- **End-of-day token price feeds**: Daily USD price data for tokens traded on the platform
- **Token metadata**: Token decimal places and symbols used for amount normalization and pair identification

## 3. Step-by-step calculation

### Component A: Trading pair establishment
- **Purpose**: Identifies all valid trading pairs and their associated fee tiers
- **Logic**: Extracts trading pair creation events from the VerseDX factory contract. Each `SwapsFactory_PairCreated_event` contains the pair contract address and the addresses of the two tokens being paired. All V1 pairs use a hardcoded fee tier of 0.3% (calculated as 3000 divided by 10^6). Token metadata is joined to get decimal places and symbols for proper amount handling and pair naming.
- **Key fields**: `pair` address, `token0` and `token1` addresses, hardcoded `fee_tier` value, token `decimals` and `symbol` from metadata

### Component B: Raw trade processing  
- **Purpose**: Captures individual swap transactions and calculates net token changes
- **Logic**: Processes `SwapsPair_Swap_event` logs from trading pair contracts. Each swap event contains four amount fields representing tokens flowing in and out of the pair. The net change for each token is calculated by subtracting out amounts from in amounts. Transaction records are joined to identify the actual user address initiating the swap. Only trades from June 14, 2022 onward are included.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` for calculating net token changes, `sender` for contract interaction, transaction `from_address` for user identification

### Component C: Daily volume aggregation
- **Purpose**: Aggregates trade data by day and converts to standardized amounts
- **Logic**: Groups swap events by day using timestamp truncation. Trades are joined with trading pair data to get token decimals and fee tiers. Token amounts are converted to standardized units by dividing absolute values by 10 raised to the token's decimal places. The aggregation maintains transaction-level granularity while grouping by day for volume calculation.
- **Key fields**: Truncated `timestamp` for daily grouping, corrected `token0_amount` and `token1_amount` using decimal adjustment, `fee_tier` from pair data

### Component D: USD conversion and manipulation protection
- **Purpose**: Converts token amounts to USD values with anti-manipulation safeguards  
- **Logic**: Joins aggregated trade data with end-of-day price feeds for both tokens in each pair. Each token amount is multiplied by its respective USD price to get dollar values. To prevent price manipulation attacks, the system takes the lesser of the two USD amounts (minimum between token0 value and token1 value). If price data is unavailable for either token, the trading volume defaults to zero.
- **Key fields**: `price_usd` from daily price feeds, calculated USD values for both tokens, final `trading_volume` as the minimum of the two values

### Final aggregation
- **Combining components**: The daily trading volumes (already in USD) are multiplied by their corresponding fee tiers to calculate fees collected
- **Currency conversion**: Trading volume is already converted to USD in the previous step using end-of-day price feeds
- **Time aggregation**: Data is aggregated at the daily level using timestamp truncation to the day boundary
- **Final calculation**: Fees equal trading volume multiplied by fee tier (trading_volume × 0.003 for all V1 pairs), with additional standardization applied through the finalize_metric_fees macro

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

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

VerseVERSE

Fees

Fees

Competitive landscape