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 Fees Methodology

## 1. Overview

The Voltz fees metric measures the total fees generated by the Voltz protocol's interest rate swap platform. This includes both trading fees paid by users when opening or closing swap positions and liquidation fees (rewards) paid to liquidators when positions are liquidated. The metric captures protocol revenue from derivatives trading activity across Ethereum and Arbitrum networks.

## 2. Data sources

- **Voltz swap events**: Parsed blockchain events from Voltz protocol swap transactions on Ethereum and Arbitrum, including `vamm_Swap_event`, `Vamm_Swap_event`, and `Fcm_FullyCollateralisedSwap_event`
- **Voltz liquidation events**: Parsed `MarginEngine_PositionLiquidation_event` logs from Ethereum and Arbitrum capturing position liquidations
- **Pool creation events**: `Factory_IrsInstance_event` logs containing token contract addresses and decimal configurations for Voltz interest rate swap pools
- **Token metadata**: Token contract information including decimal places and identifiers
- **End-of-day price feeds**: Daily token price data for USD conversion

## 3. Step-by-step calculation

### Component A: Trading fees extraction
- **Purpose**: Captures fees paid by users when trading interest rate swaps
- **Logic**: Extracts fee data from three types of swap events across Ethereum and Arbitrum networks. For each swap transaction, retrieves the `cumulativeFeeIncurred` field which represents the total fees accumulated during the swap. Joins swap events with pool creation events to obtain the underlying token contract address and decimal configuration. Normalizes fee amounts by dividing the raw `cumulativeFeeIncurred` value by 10 raised to the power of the token's decimal places
- **Key fields**: `cumulativeFeeIncurred` (raw fee amount), `underlyingToken` (token contract address), `underlyingTokenDecimals` (decimal places for normalization)

### Component B: Liquidation fees extraction  
- **Purpose**: Captures fees paid to liquidators when positions are liquidated
- **Logic**: Extracts liquidation data from position liquidation events on both Ethereum and Arbitrum. For each liquidation event, retrieves the `liquidatorReward` field representing the fee paid to the liquidator. Joins liquidation events with pool creation events using address matching logic that connects trade addresses to pool component addresses including VAMM, FCM, or margin engine addresses. Applies the same decimal normalization as trading fees
- **Key fields**: `liquidatorReward` (liquidation fee amount), `underlyingToken` (token contract address), `underlyingTokenDecimals` (decimal places)

### Final aggregation
- **Combining components**: Trading fees and liquidation fees are combined using a union operation, creating a single dataset with both fee types sharing the same schema structure
- **Currency conversion**: Fee amounts are converted to USD using end-of-day token price feeds, with conversion applied after decimal normalization
- **Time aggregation**: Transaction timestamps are truncated to daily boundaries to create daily fee totals
- **Final calculation**: The metric sums all trading and liquidation fees by day, chain, and token, representing the total daily fee revenue generated by the Voltz protocol across all supported networks and tokens

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

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

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Fees

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