Liquidity providers deposit funds into Vertex and earn the spread between maker and taker orders.

Vertex is a non-custodial exchange built on Arbitrum that offers spot, perpetuals, and money markets with universal cross-margin accounts. Vertex launched in 2023, and was founded by Darius Tabatabai and Alwin Peng.

The Vertex team own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Vertex's investors include Wintermute, Hack VC, Jane Street, etc.

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Vertex

# Vertex Earnings Methodology

## 1. Overview

Vertex earnings represents the net profit generated by the Vertex protocol, calculated as total revenue minus total expenses. This metric measures the protocol's profitability from perpetual derivatives trading operations across multiple blockchain networks. Revenue is derived entirely from trading fees collected on spot and perpetual trades, while expenses consist of VRTX token incentives distributed to users through airdrops.

## 2. Data sources

The calculation relies on the following blockchain data sources:

- **Trading event logs**: Parsed `OffchainExchange_FillOrder_event` and `OffchainBook_FillOrder_event` logs from Vertex contracts deployed on Arbitrum, Base, Sonic, Avalanche, and Blast networks
- **Airdrop event logs**: Parsed `VrtxAirdrop_ClaimVrtx_event` logs from the Vertex VRTX airdrop contract on Arbitrum
- **End-of-day price feeds**: Token price data for USD conversion of VRTX token incentives
- **Token metadata**: Decimal precision information for proper token amount calculations

## 3. Step-by-step calculation

### Component A: Revenue from trading fees

- **Purpose**: Captures all revenue generated from perpetual derivatives trading fees across supported chains
- **Logic**: Extracts fee data from `FillOrder` events emitted by both off-chain exchange and off-chain book contracts. Filters specifically for events where `isTaker` is true to prevent double-counting, since both maker and taker sides of each trade generate separate events. Fee amounts are already denominated in USD with 18-decimal precision in the event logs. Daily aggregation is performed by truncating block timestamps to day boundaries
- **Key fields**: `feeAmount` (fee collected in USD), `isTaker` (boolean to identify taker side), `block_timestamp` (for daily aggregation), `address` (trading account)

### Component B: Expenses from token incentives

- **Purpose**: Calculates the USD value of VRTX tokens distributed as trading incentives through airdrops
- **Logic**: Extracts VRTX token claim amounts from `ClaimVrtx` events on Arbitrum. Focuses specifically on the VRTX token contract address `0x95146881b86b3ee99e63705ec87afe29fcc044d9` to isolate VRTX incentive distributions. Raw token amounts are converted to USD using end-of-day price feeds and adjusted from 18-decimal precision to standard decimal format. Daily aggregation groups claims by truncated block timestamps
- **Key fields**: `amount` (raw VRTX token amount), `token_address` (contract address for filtering), `block_timestamp` (for daily aggregation)

### Final aggregation

- **Combining components**: Revenue and expenses are calculated separately as daily totals, then joined by timestamp and chain to ensure proper alignment
- **Currency conversion**: VRTX token amounts in expenses are converted to USD using end-of-day price feeds, while revenue amounts are already in USD from the source events
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Earnings equals total daily revenue minus total daily expenses, with any missing days filled with zero values to maintain complete time series continuity

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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