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 Revenue Methodology

## 1. Overview

Vesta revenue represents the total fees earned by the Vesta protocol, a stablecoin issuer operating on Arbitrum. The metric captures four revenue streams: borrowing fees and interest from VST stablecoin operations, plus performance fees from yield-generating activities and redemption fees from vault liquidations. Revenue equals total fees collected by the protocol, converted to USD and aggregated daily.

## 2. Data sources

- **Vesta protocol events**: Parsed smart contract events from Vesta's BorrowerOperations, InterestManager, Treasury, and VaultManager contracts on Arbitrum
- **VST price feeds**: Custom price updates from Vesta's PriceFeed contract for VST token valuation
- **Token Terminal price feeds**: End-of-day price feeds for WETH and other tokens used in performance and redemption fees
- **Token metadata**: Decimal precision data for proper token amount normalization
- **Blockchain transaction data**: Arbitrum transaction logs containing the fee payment events

## 3. Step-by-step calculation

### Component A: VST borrowing fees
- **Purpose**: Captures fees paid when users borrow VST stablecoin against collateral
- **Logic**: Extracts `BorrowerOperations_VSTBorrowingFeePaid_event` logs from Arbitrum, normalizes the `VSTFee` amount by dividing by 10^18 to account for 18-decimal precision, aggregates by day, and converts to USD using custom VST pricing
- **Key fields**: `VSTFee` (raw fee amount), `block_timestamp` (transaction timing), VST token address as identifier

### Component B: VST interest payments
- **Purpose**: Captures interest earned when VST tokens are minted as interest on outstanding loans
- **Logic**: Processes `InterestManager_InterestMinted_event` logs, extracts the `interestMinted` value, normalizes by dividing by 10^18, aggregates daily, and converts to USD using VST prices
- **Key fields**: `interestMinted` (interest amount), `block_timestamp`, VST token address

### Component C: Performance fees
- **Purpose**: Captures fees earned from GLP and GMX staking rewards received by the protocol treasury
- **Logic**: Filters `Treasury_SafeReceived_event` logs where sender is either the GLP staking contract or GMX staking contract, extracts the received WETH `value`, applies decimal correction using Token Terminal's standard methodology, and converts to USD using end-of-day WETH prices
- **Key fields**: `value` (WETH amount received), `sender` (identifies GLP vs GMX source), WETH token address

### Component D: Redemption fees
- **Purpose**: Captures fees collected when users redeem VST for underlying collateral assets
- **Logic**: Processes `VaultManager_Redemption_event` logs, extracts the `AssetFee` amount, handles null addresses by mapping to WETH, applies decimal correction for proper token normalization, and converts to USD using respective token prices
- **Key fields**: `AssetFee` (fee amount in collateral asset), `asset` (collateral token address), handles null address as WETH

### Component E: Custom VST pricing
- **Purpose**: Provides USD pricing for VST token used in borrowing fees and interest calculations
- **Logic**: Extracts price updates from Vesta's `PriceFeed_TokenPriceUpdated_event` logs specifically for VST token, normalizes prices by dividing by 10^18, averages daily prices, fills missing historical days starting from January 1, 2022 with $0.99 baseline price, and forward-fills gaps to ensure continuous pricing
- **Key fields**: `price` (USD price with 18 decimals), VST token address filter, daily aggregation

### Final aggregation
- **Combining components**: VST fees (borrowing + interest) are combined with asset fees (performance + redemption) using union operations, maintaining separate processing paths due to different pricing methodologies
- **Currency conversion**: VST-denominated fees use custom protocol pricing while WETH and other assets use Token Terminal's end-of-day price feeds with standard decimal correction macros
- **Time aggregation**: All events are truncated to daily timestamps and aggregated to remove intraday granularity, with gaps filled using zero values where no fee activity occurred
- **Final calculation**: Total daily revenue equals the sum of all USD-converted fees across the four revenue streams, validated through Token Terminal's standard metric finalization process

*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.

Vesta FinanceVSTA

Revenue

Revenue

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