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 Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total trading fees that are paid to liquidity providers or market makers. For Vertex Protocol, supply-side fees are calculated as 0% of total fees because market makers are incentivized through bid-ask spreads rather than explicit fee sharing. This metric answers the business question "How much revenue does the protocol share with liquidity providers?" and the answer is zero due to Vertex's specific market maker compensation model.

## 2. Data sources

- **Blockchain events**: Parsed `FillOrder` events from Vertex Protocol's `OffchainExchange` and `OffchainBook` smart contracts across multiple chains
- **Multi-chain coverage**: Events from Arbitrum, Base, Sonic, and Avalanche for Vertex Protocol, plus Blast for Blitz Protocol  
- **Event data**: Each `FillOrder` event contains fee amount data denominated in USD with 18 decimal precision, along with maker/taker designation flags
- **Transaction context**: Block timestamps, transaction hashes, and log indices for event ordering and deduplication

## 3. Step-by-step calculation

### Component A: Raw fee extraction
- **Purpose**: Extract trading fee data from blockchain events while avoiding double-counting
- **Logic**: Collect `FillOrder` events from Vertex's offchain exchange and book contracts across supported chains. Filter events to only include those where `isTaker` is true, since both maker and taker events are emitted for each trade and would otherwise result in double-counting. Convert fee amounts from 18-decimal USD format to standard decimal representation by dividing by 10^18. Classify all activities as perpetual trading in the derivatives market sector.
- **Key fields**: `feeAmount` (converted from 18 decimals), `isTaker` (filtering flag), `block_timestamp`, and contract addresses across chains

### Component B: Daily fee aggregation  
- **Purpose**: Aggregate individual trade fees into daily totals by chain and product
- **Logic**: Group the filtered fee events by day using timestamp truncation, summing fee amounts within each day-chain-product combination. Apply gap-filling logic to ensure continuous daily series with zero values for days without trading activity.
- **Key fields**: Daily `timestamp`, `chain_id`, `product_id`, and aggregated `fees` amounts

### Final calculation
- **Supply-side fee logic**: Set supply-side fees to zero (0% of total fees) for all records based on Vertex Protocol's business model where market makers are compensated through bid-ask spreads rather than fee sharing
- **Schema standardization**: Apply protocol validation macros to ensure consistent field schemas, validate chain and product identifiers, and maintain data quality standards
- **Time aggregation**: Maintain daily granularity with gap-filling to ensure complete time series coverage
- **Final calculation**: Supply-side fees = 0 for all days, chains, and products, regardless of total fee amounts

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

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

VertexVRTX

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown