Overcollateralized borrowers deposit funds into Vesta Finance and borrow VST stablecoin.

Vesta Finance is a non-custodial stablecoin protocol built on Arbitrum. Vesta Finance was founded by Mikey Milken and launched in 2022.

VSTA tokenholders own and govern the protocol. They currently take all of the total interest paid by borrowers (revenue).

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Vesta Finance

# Vesta Finance Fees Methodology

## 1. Overview

This metric measures the total daily fees generated by the Vesta Finance protocol, a decentralized stablecoin issuer on Arbitrum. The metric captures all revenue streams from Vesta's lending and stablecoin operations, including borrowing fees, interest payments, performance fees from yield-generating strategies, and redemption fees. The calculation combines multiple fee types denominated in different tokens (VST stablecoin, WETH, and other collateral assets) and converts them to USD using appropriate pricing methodologies.

## 2. Data sources

- **Vesta protocol events**: Parsed contract events from Vesta's v1 deployment on Arbitrum, including borrowing operations, interest management, treasury operations, and vault management
- **VST price feeds**: Internal Vesta price update events for VST token valuation from the protocol's own price feed contract
- **End-of-day price feeds**: Token Terminal's standard price feeds for WETH and other collateral tokens
- **Token metadata**: Decimal precision data for proper token amount normalization
- **Transaction data**: Arbitrum transaction records containing the fee-generating events

## 3. Step-by-step calculation

### Component A: Interest and borrowing fees
- **Purpose**: Captures VST-denominated fees from borrowing operations and interest accrual
- **Logic**: Extracts borrowing fees from `VSTBorrowingFeePaid` events and interest payments from `InterestMinted` events. Both event types contain VST amounts that are normalized by dividing by 18 decimal places. The events are filtered to daily timestamps and classified under the stablecoin issuer business segment. VST amounts are converted to USD using Vesta's internal VST price feed, which provides protocol-specific pricing that may differ from external market rates
- **Key fields**: `VSTFee` amounts from borrowing events, `interestMinted` amounts from interest events, both normalized to standard decimal precision

### Component B: Performance and redemption fees  
- **Purpose**: Captures fees denominated in WETH and other collateral assets from yield strategies and redemptions
- **Logic**: Extracts performance fees from `SafeReceived` events where the sender is either GLP staking contract or GMX staking contract, indicating yield distribution to the treasury. Also captures redemption fees from `Redemption` events, treating null addresses as WETH. Token amounts undergo decimal correction using token metadata to ensure proper normalization. All amounts are converted to USD using Token Terminal's end-of-day price feeds for the respective tokens
- **Key fields**: `value` amounts from treasury receipts, `AssetFee` amounts from redemption events, with `asset` addresses identifying the fee token, `sender` addresses identifying fee sources

### Final aggregation
- **Combining components**: The two fee components are combined through a union operation, creating a single daily time series of all Vesta fees regardless of denomination or source
- **Currency conversion**: VST fees use Vesta's internal price feed (with $0.99 fallback for missing periods), while other tokens use standard Token Terminal end-of-day price feeds
- **Time aggregation**: All fees are truncated to daily boundaries using the block timestamp of the originating events
- **Final calculation**: Daily fees are summed across all fee types and tokens, with any missing days filled with zeros to create a complete time series. The result represents total daily fee revenue for Vesta protocol in USD

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

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

Vesta FinanceVSTA

Fees

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