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 Supply-side fees Methodology

## 1. Overview

Supply-side fees for Voltz represent the total fees collected by the protocol from its interest rate swap operations. This metric captures fees earned from two primary activities: trading fees collected when users open or close interest rate swap positions, and liquidation fees collected when positions are liquidated due to insufficient margin. The calculation aggregates these fees across Ethereum and Arbitrum deployments, converts them to USD using end-of-day pricing, and presents them as a daily time series.

## 2. Data sources

The calculation uses the following raw data sources:

- **Voltz protocol events**: Parsed smart contract events from Voltz V1 deployments on Ethereum and Arbitrum, including swap events, liquidation events, and factory events
- **Trading events**: `Vamm_Swap`, `vamm_Swap`, and `Fcm_FullyCollateralisedSwap` events that capture interest rate swap position openings and closings
- **Liquidation events**: `MarginEngine_PositionLiquidation` events that capture position liquidations due to insufficient margin
- **Factory events**: `Factory_IrsInstance` events that provide pool creation details including underlying token addresses and decimal configurations
- **Token metadata**: Token registry containing validated token information and chain mappings
- **End-of-day price feeds**: Daily token price data for USD conversion

## 3. Step-by-step calculation

### Component A: Trading fees extraction

- **Purpose**: Extract fees collected from interest rate swap trading activities
- **Logic**: Parse trading events from Voltz protocol including `Vamm_Swap`, `vamm_Swap`, and `Fcm_FullyCollateralisedSwap` events across Ethereum and Arbitrum chains. For each event, extract the `cumulativeFeeIncurred` field which represents the total fees accumulated for that position. Join with factory events to obtain the underlying token address and decimal configuration. Normalize the raw fee amounts by dividing by 10 raised to the power of the token decimals to convert from blockchain integer representation to proper decimal amounts. Filter events to include only those with valid underlying tokens present in the token registry.
- **Key fields**: `cumulativeFeeIncurred` (raw fee amount), `underlyingToken` (token address), `underlyingTokenDecimals` (decimal places), event addresses for joining factory events

### Component B: Liquidation fees extraction  

- **Purpose**: Extract fees collected from position liquidations
- **Logic**: Parse `MarginEngine_PositionLiquidation` events from Voltz protocol on Ethereum and Arbitrum. For each liquidation event, extract the `liquidatorReward` field which represents the fee paid to liquidators when positions are closed due to insufficient margin. Join with factory events using address matching logic that connects liquidation events to their corresponding pools via VAMM, FCM, or margin engine addresses. Normalize fee amounts using the same decimal conversion process as trading fees. Filter for valid tokens using the token registry.
- **Key fields**: `liquidatorReward` (raw liquidation fee), `underlyingToken` (token address), `underlyingTokenDecimals` (decimal places), contract addresses for event matching

### Component C: Fee combination and validation

- **Purpose**: Combine trading and liquidation fees into a unified dataset
- **Logic**: Union the trading fees and liquidation fees datasets, ensuring both include consistent metadata fields including chain identifier, market sector classification as derivatives, business segment as perpetual, and business line as interest rate swaps. Apply timestamp truncation to daily boundaries for time series aggregation. Filter the combined dataset through an inner join with the token registry to ensure only validated tokens are included in the final calculation.
- **Key fields**: `amount` (normalized fee amount), `token_address`, `chain`, `timestamp` (daily), protocol metadata fields

### Final aggregation

- **Combining components**: The trading and liquidation fees are combined using a union operation, creating a single stream of fee events across both activity types
- **Currency conversion**: Apply USD conversion using end-of-day price feeds through the convert_to_usd_and_correct_decimals macro, which matches token addresses and chains to corresponding price data and multiplies normalized token amounts by USD prices
- **Time aggregation**: Group fees by daily timestamps using timestamp truncation, summing all fee amounts within each day across all tokens and activity types
- **Final calculation**: Apply the finalize_metric_fees macro with a fill_zeros strategy to create a complete daily time series, filling any missing dates with zero values. The supply-side fees metric is then extracted by selecting the fees column and renaming it as fees_supply_side, representing the total daily fees collected by the Voltz protocol from both trading and liquidation activities

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

Portion of fees distributed to service providers or supply-side participants.

Voltz

Supply-side fees

Supply-side fees

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