Liquidity providers deposit funds into Voltz and receive trading fees from traders (supply-side fees).

Voltz Protocol is a non-custodial Automated Market Maker (AMM) for Interest Rate Swaps deployed on Ethereum.

Voltz DAO owns and governs the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Voltz’s investors include Framework, Fabric Ventrues etc.

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Voltz

# Voltz Earnings Methodology

## 1. Overview

The Voltz earnings metric measures the protocol's net profitability by calculating revenue minus expenses. For Voltz, an interest rate swap protocol on Ethereum and Arbitrum, earnings are currently calculated as zero because the protocol does not retain trading fees as revenue and has no token incentive expenses. This metric follows the standard financial definition where earnings represent the protocol's bottom-line profitability after accounting for all income and expenses.

## 2. Data sources

The calculation relies on several blockchain data sources to establish the fee structure and ensure consistent time-series coverage:

- **Voltz protocol event logs**: Parsed events from Voltz V1 contracts on Ethereum and Arbitrum networks
- **Swap events**: `Swap` events from VAMM (Virtual Automated Market Maker) contracts and `FullyCollateralisedSwap` events from FCM (Fully Collateralized Margin) contracts that capture trading activity
- **Liquidation events**: `PositionLiquidation` events from MarginEngine contracts that capture liquidation fees
- **Pool creation events**: `IrsInstance` events from Factory contracts that provide token metadata including decimal precision
- **Token metadata**: Reference data containing token contract addresses, symbols, and decimal places for proper unit conversion
- **End-of-day token price feeds**: USD price data for converting token-denominated fees to USD equivalents

## 3. Step-by-step calculation

### Component A: Fee data collection
- **Purpose**: Establishes the underlying fee structure from Voltz protocol activity to provide consistent time-series coverage
- **Logic**: Extracts trading fees from interest rate swap events across VAMM and FCM contracts, plus liquidation rewards from MarginEngine position liquidations. Trading fees come from the `cumulativeFeeIncurred` field in swap events, while liquidation fees come from `liquidatorReward` amounts in liquidation events. Events are joined with Factory pool creation events to obtain the underlying token address and decimal precision for each swap pool.
- **Key fields**: `cumulativeFeeIncurred` from swap events, `liquidatorReward` from liquidation events, `underlyingToken` and `underlyingTokenDecimals` from pool creation events, plus standard blockchain metadata like `block_timestamp`, `transaction_hash`, and contract addresses

### Component B: Revenue calculation
- **Purpose**: Determines protocol revenue from fee collection
- **Logic**: Revenue is explicitly set to zero for all time periods and chains. This indicates that while the protocol collects trading and liquidation fees, these fees are not retained as protocol revenue but instead flow to other participants such as liquidity providers or market makers.
- **Key fields**: `revenue` field set to 0, maintaining the same timestamp and dimensional structure as the underlying fee data

### Component C: Token incentives and expenses
- **Purpose**: Calculates protocol expenses from token incentive programs
- **Logic**: Token incentives are set to zero, indicating Voltz does not currently operate token reward programs. These zero incentives become the total expenses since they represent the only expense category tracked for this protocol.
- **Key fields**: `token_incentives` set to 0, which flows directly to `expenses` field

### Final aggregation
- **Combining components**: Earnings are calculated using the standard formula: revenue minus expenses. Since both revenue and expenses are zero for Voltz, earnings equal zero for all time periods
- **Currency conversion**: Fee amounts are converted to USD using end-of-day price feeds and token decimal metadata to ensure proper unit scaling before aggregation
- **Time aggregation**: All data is aggregated to daily granularity using `timestamp_trunc` to day boundaries, with consistent coverage across Ethereum and Arbitrum chains
- **Final calculation**: Earnings = Revenue (0) - Expenses (0) = 0 for all days, chains, and product categories, with standard metric schema validation and zero-filling applied to ensure complete time-series coverage

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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