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.

github

twitter

discord

website

Derivative exchanges

Volmex

# Volmex Revenue Methodology

## 1. Overview

Volmex revenue represents the total fees collected by the Volmex protocol from volatility trading activities. The calculation follows a simple principle: Volmex retains 100% of all trading fees collected from users, so revenue equals total fees. The metric aggregates fees from collateral deposits and redemptions across Volmex's volatility vaults on Ethereum, Arbitrum, and Polygon networks.

## 2. Data sources

The methodology relies on the following raw data sources:

- **Smart contract events**: Parsed `CollateralToken_Collateralized_event` and `CollateralToken_Redeemed_event` logs from Volmex v1 smart contracts deployed on Ethereum, Arbitrum, and Polygon
- **Vault configuration**: Static mapping of Volmex vault addresses to their corresponding collateral token addresses and symbols across all supported chains  
- **Token price feeds**: End-of-day token price feeds for USD conversion of fee amounts
- **Token metadata**: Token decimal precision data for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Vault dimension mapping
- **Purpose**: Establish relationships between Volmex vault addresses and their underlying collateral tokens
- **Logic**: Creates a static lookup table containing vault addresses, token addresses, token symbols, and chain information for all Volmex vaults. This includes ETHV and BTCV vaults with DAI and USDC collateral across Ethereum, Arbitrum, and Polygon networks. The mapping enables proper token identification when processing fee events.
- **Key fields**: `vault_address`, `token_address`, `token_symbol`, `chain`

### Component B: Trading fee extraction
- **Purpose**: Extract all fee amounts from Volmex trading activities
- **Logic**: Collects fee data from two types of Volmex smart contract events. First, processes `CollateralToken_Collateralized_event` logs which occur when users deposit collateral to open positions, extracting the `fees` field from each event. Second, processes `CollateralToken_Redeemed_event` logs which occur when users redeem collateral by closing positions, also extracting the `fees` field. Joins these events with the vault dimension table to get token address and symbol information. Adds business classification metadata including business line as "Volatility trading", market sector as "derivatives", and business segment as "perpetual".
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address`, `chain`, `fees` (renamed to `amount`), `token_address`, `token_symbol`

### Component C: Fee aggregation and USD conversion  
- **Purpose**: Aggregate daily fees and convert to USD values
- **Logic**: Groups fee events by day using timestamp truncation to create daily boundaries. Aggregates fee amounts by timestamp, chain, market sector, business segment, product, and token address. Applies USD conversion using end-of-day token price feeds matched to the fee collection date. Corrects for token decimal precision to ensure accurate dollar amounts. Uses the `finalize_metric_fees` macro to standardize the schema, validate dimension IDs, and fill gaps with zeros for days with no fee activity.
- **Key fields**: `timestamp`, `timestamp_grain`, `chain_id`, `fees` (in USD)

### Final aggregation
- **Combining components**: Revenue calculation takes the processed fees directly since Volmex retains 100% of all collected fees
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds matched to the transaction date, with proper decimal adjustment based on the collateral token's precision
- **Time aggregation**: Daily aggregation using timestamp truncation to day boundaries, with gap filling to ensure complete time series
- **Final calculation**: Revenue equals the sum of all daily fees in USD, as Volmex keeps the entire fee amount collected from users without sharing with liquidity providers or other parties

*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.

Volmex

Revenue

Revenue

Competitive landscape

Chain breakdown