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 Expenses Methodology

## 1. Overview

Voltz expenses represent the token incentives paid by the Voltz protocol to users. This metric measures the daily USD value of tokens distributed as rewards or subsidies to encourage participation in Voltz's interest rate swap platform. Currently, Voltz does not distribute any token incentives, so this metric consistently reports zero values across all chains and time periods.

The calculation follows Voltz's fee structure to maintain dimensional consistency (same timestamps, chains, and product classifications) while setting all expense values to zero.

## 2. Data sources

The underlying data infrastructure leverages:
- **Interest rate swap events**: Parsed `vamm_Swap_event`, `Vamm_Swap_event`, and `Fcm_FullyCollateralisedSwap_event` logs from Voltz v1 contracts on Ethereum and Arbitrum representing position opens and closes
- **Liquidation events**: Parsed `MarginEngine_PositionLiquidation_event` logs from Voltz v1 contracts on Ethereum and Arbitrum representing forced position closures  
- **Pool creation events**: Parsed `Factory_IrsInstance_event` logs from Voltz v1 contracts containing underlying token addresses and decimal configurations
- **Token metadata**: Reference data containing token symbols, addresses, and chain mappings for validation
- **End-of-day price feeds**: Daily closing prices for USD conversion of all supported tokens

While the final expenses metric is hardcoded to zero, the calculation maintains the same dimensional structure as Voltz's fee collection system to ensure consistent reporting framework.

## 3. Step-by-step calculation

### Component A: Trading fee extraction
- **Purpose**: Extract fee data from interest rate swap trading events to establish the dimensional framework
- **Logic**: Query swap events across Ethereum and Arbitrum Voltz v1 contracts, including standard VAMM swaps and fully collateralized swaps. Extract the `cumulativeFeeIncurred` field representing cumulative fees paid. Join each trade event with corresponding pool creation events to obtain the underlying token address and decimal places. Normalize fee amounts by dividing by 10 raised to the token's decimal places. Classify all events under 'Interest rate swaps' business line, 'derivatives' market sector, and 'perpetual' business segment.
- **Key fields**: `block_timestamp` for timing, `cumulativeFeeIncurred` for fee amounts, `underlyingToken` for token identification, `underlyingTokenDecimals` for normalization

### Component B: Liquidation fee extraction  
- **Purpose**: Extract fee data from position liquidation events to complete the fee framework
- **Logic**: Query liquidation events from Voltz margin engines on Ethereum and Arbitrum. Extract the `liquidatorReward` field representing fees paid to liquidators. Join each liquidation event with pool creation events to obtain underlying token details. Normalize reward amounts using the same decimal adjustment process. Apply identical business classification as trading fees to maintain consistency.
- **Key fields**: `block_timestamp` for timing, `liquidatorReward` for fee amounts, `underlyingToken` for token identification, `underlyingTokenDecimals` for normalization

### Component C: Fee aggregation and USD conversion
- **Purpose**: Combine all fee sources and convert to standardized USD values  
- **Logic**: Union trading fees and liquidation fees into a single dataset. Truncate timestamps to daily boundaries and aggregate by day, chain, market sector, business segment, product, and token. Join with token metadata to validate token information. Convert all fee amounts to USD using end-of-day price feeds, applying the appropriate exchange rate for each day and token combination.
- **Key fields**: `timestamp` (day-truncated), `chain_id`, `token_address`, `fees` (USD-converted amounts)

### Component D: Token incentive structure creation
- **Purpose**: Create the dimensional framework for expense tracking while setting values to zero
- **Logic**: Extract the dimensional structure (timestamp, timestamp grain, product ID, chain ID) from the aggregated fee data to ensure consistent reporting framework. For each unique combination of these dimensions, set the `token_incentives` value to exactly 0. This maintains the same temporal and geographic coverage as the fee collection system while indicating no actual token distributions occur.
- **Key fields**: `timestamp`, `timestamp_grain`, `product_id`, `chain_id`, `token_incentives` (hardcoded to 0)

### Final aggregation
- **Combining components**: Take the zero-valued token incentives structure and rename the `token_incentives` field to `expenses` without any mathematical transformation
- **Currency conversion**: No additional currency conversion needed as values are already zero
- **Time aggregation**: Maintain daily timestamp grain established in the fee aggregation process  
- **Final calculation**: The final expenses value equals 0 for all records, indicating Voltz currently operates without token incentive programs across all chains and time periods

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

Total project operating and incentive expenses.

Voltz

Expenses

Expenses

Competitive landscape

Chain breakdown