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.

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Verse

# Verse Revenue Methodology

## 1. Overview

This metric calculates daily revenue for Versedx, a decentralized exchange (DEX) protocol on Ethereum. Revenue represents the protocol's share of trading fees collected from users who trade on Versedx pools. The calculation applies a fixed protocol fee share of 1/6 (approximately 16.67%) to the total trading fees generated across all trading pairs. This metric answers the business question: "How much revenue does the Versedx protocol generate daily from trading activity?"

The general approach multiplies trading volume by pool fee rates to calculate total fees, then applies the protocol's revenue share to determine protocol revenue.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `SwapsPair_Swap_event` logs containing trade execution details including token amounts, user addresses, and pool identifiers
- **Pool creation events**: Parsed Ethereum `SwapsFactory_PairCreated_event` logs providing trading pair configurations, token addresses, and fee tier information
- **Transaction data**: Ethereum transaction records linking swap events to originating user addresses
- **Token metadata**: Token metadata including decimal precision for amount normalization and token symbols for trading pair naming
- **External data**: End-of-day token price feeds for USD conversion of trading volumes

## 3. Step-by-step calculation

### Component A: Trading pair dimensions
- **Purpose**: Establishes the universe of Versedx trading pairs with their fee structures and token metadata
- **Logic**: Extract all trading pair creation events from the Versedx factory contract on Ethereum. Each pair creation event contains the pool address, two token addresses (token0 and token1), and establishes a fixed fee tier of 0.3% (calculated as 3000/1000000). Join with token metadata to get decimal precision and symbols for each token. Create readable trading pair names by concatenating token symbols (e.g., "ETH-USDC"). All pairs use version "v1" and operate on Ethereum
- **Key fields**: `account_address` (pool address), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `fee_tier` (0.3%), `account_name` (token symbol pair)

### Component B: Raw trade extraction  
- **Purpose**: Captures individual trade transactions from Versedx swap events
- **Logic**: Extract swap events from Versedx pair contracts, filtering for transactions after June 14, 2022. Each swap event contains four amount fields: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` representing token flows. Calculate net token amounts by subtracting out-amounts from in-amounts for both tokens. Link swap events to Ethereum transaction records to identify the originating user address (transaction sender). Classify all trades under "Exchange AMM" business line and "dex" segment
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address` (pool), `user_address`, `token0_amount` (net), `token1_amount` (net)

### Component C: Trading volume calculation
- **Purpose**: Converts raw token amounts to USD trading volumes with anti-manipulation filtering
- **Logic**: Join trade events with trading pair dimensions to get token addresses and decimal precision. Normalize token amounts by dividing by 10 raised to the token's decimal places. Join with end-of-day price feeds for both tokens in each pair to get USD prices. Convert both token amounts to USD values by multiplying normalized amounts by respective token prices. Apply anti-manipulation filter by taking the lesser of the two USD amounts as the final trading volume (prevents inflated volumes from price discrepancies). Aggregate by day, transaction hash, and log index
- **Key fields**: `timestamp` (daily), `trading_volume` (USD amount), `token0_address`, `token1_address`, `fee_tier`

### Component D: Fee calculation
- **Purpose**: Calculates total trading fees generated across all Versedx pairs
- **Logic**: Multiply trading volume by the fee tier for each trade. Since all Versedx v1 pairs use a 0.3% fee tier, this results in fees equal to trading volume × 0.003. Aggregate fees by day across all trading pairs and user transactions
- **Key fields**: `fees` (calculated as trading_volume × fee_tier)

### Final aggregation
- **Combining components**: Revenue calculation takes the aggregated daily fees and applies the protocol fee share
- **Currency conversion**: All amounts are already converted to USD through the trading volume calculation using end-of-day price feeds
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: Revenue equals total fees multiplied by the protocol fee share of 1/6 (approximately 16.67%). This represents the portion of trading fees that accrues to the Versedx protocol rather than liquidity providers

*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.

VerseVERSE

Revenue

Revenue

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