Liquidity providers deposit collateral and mint volatility tokens. Traders can then purchase these volatility tokens to express views on market volatility.

Volmex enables VIX-like indices for crypto assets and trading functionality on Ethereum. Volmex was founded by Cole Kennelly and launched in 2021.

The Volmex team and investors own and govern the protocol. They currently charge a minting and redemption fee (revenue). Volmex’s investors include Three Arrows Capital, Robot Ventures, CMS Holdings etc.

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Volmex

# Volmex Fees Methodology

## 1. Overview

The Volmex fees metric measures the total trading fees collected by the Volmex protocol from volatility trading activities. This metric captures fees generated when users collateralize assets to mint volatility tokens (ETHV, BTCV) and when they redeem these tokens back to the underlying collateral. The calculation aggregates fees across all Volmex vaults on Ethereum, Arbitrum, and Polygon, converting amounts to USD and providing daily totals for each chain.

## 2. Data sources

The calculation relies on several key data sources:

- **Blockchain events**: Parsed `CollateralToken_Collateralized_event` and `CollateralToken_Redeemed_event` logs from Volmex smart contracts on Ethereum, Arbitrum, and Polygon
- **Vault configuration**: Hardcoded mapping of vault addresses to their corresponding collateral tokens (DAI, USDC) and token symbols across all supported chains
- **External data**: End-of-day price feeds for USD conversion of collected fees
- **Token metadata**: Token decimal precision data for proper amount normalization

## 3. Step-by-step calculation

### Component A: Vault dimension mapping
- **Purpose**: Establishes the relationship between vault addresses and their underlying collateral tokens
- **Logic**: Creates a static mapping of Volmex vault contracts to their collateral token details across Ethereum, Arbitrum, and Polygon. Each vault is mapped to its chain, token symbol (like 'ETHV DAI Collateral'), vault address, and underlying collateral token address (DAI or USDC)
- **Key fields**: `chain`, `token_symbol`, `vault_address`, `token_address`

### Component B: Trading fees fact table
- **Purpose**: Extracts and standardizes fee data from blockchain events across all chains
- **Logic**: Combines fee events from both collateralization and redemption operations. For each chain (Ethereum, Arbitrum, Polygon), the process extracts fees from `CollateralToken_Collateralized_event` logs when users deposit collateral to mint volatility tokens, and from `CollateralToken_Redeemed_event` logs when users redeem tokens back to collateral. Each event is joined with vault dimension data to identify the underlying collateral token and classify the business context
- **Key fields**: `block_timestamp`, `transaction_hash`, `chain`, `token_address`, `amount` (from `fees` field), business classification fields

### Component C: Daily fee aggregation
- **Purpose**: Groups fees by day and applies timestamp boundaries
- **Logic**: Truncates event timestamps to daily boundaries using timestamp truncation, groups fees by day, chain, and token address. Sets timestamp grain to 'day' and maintains business classification fields for all records
- **Key fields**: `timestamp` (daily), `chain_id`, `token_address`, `fees`, business classification metadata

### Final aggregation
- **Combining components**: Fee amounts are summed by day, chain, and token after joining events with vault configuration data
- **Currency conversion**: Raw fee amounts are converted to USD using end-of-day price feeds and corrected for token decimals through the convert_to_usd_and_correct_decimals macro
- **Time aggregation**: Daily aggregation with timestamp truncation to day boundaries
- **Final calculation**: The metric represents total daily fees in USD collected across all Volmex vaults, with zero-filling applied for days with no activity and chain availability filtering to ensure data quality

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

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

Volmex

Fees

Fees

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Chain breakdown