Liquidity providers deposit funds into Wombat Exchange and receive WOM token rewards.

Wombat Exchange is a non-custodial exchange protocol built on BNB Chain. Wombat Exchange was founded by Alex Lee and launched in April 2022.

WOM tokenholders own and govern the protocol. They currently receive all trading fees paid by traders (revenue). Wombat Exchange’s investors include Binance Labs, Animoca Brands and Hailstone Ventures.

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Wombat Exchange

# Wombat Exchange Fees Methodology

## 1. Overview

The Wombat fees metric calculates the total fees collected by Wombat Exchange across all supported chains based on trading volume and dynamic fee tiers. This metric answers the business question of how much revenue Wombat Exchange generates from trading activities. The calculation multiplies the USD trading volume by the applicable fee tier for each pool, where fee tiers are determined by a combination of hardcoded initial values and dynamic updates from blockchain events.

## 2. Data sources

- **Blockchain events**: Parsed `Swap` and `SwapV2` events from Wombat Exchange pools across BSC, Arbitrum, Ethereum, Avalanche, Optimism, and Base chains, capturing trade execution details
- **Fee tier events**: Parsed `SetHaircutRate` events from various Wombat pool contracts that update fee percentages dynamically
- **Transaction data**: Blockchain transaction records to identify user addresses and validate trade execution
- **Token metadata**: Token information including symbols and decimal places for proper amount calculations
- **External data**: End-of-day token price feeds for USD conversion across all supported tokens and chains

## 3. Step-by-step calculation

### Component A: Trade data extraction
- **Purpose**: Collect all swap transactions from Wombat Exchange pools across multiple chains
- **Logic**: Extract trade events from various pool types including main pools, side pools, cross-chain pools, and specialized asset pools. Filter transactions from BSC, Arbitrum, Ethereum, Avalanche, Optimism, and Base chains. Handle edge cases by mapping unsupported wrapped tokens to the WOM token address. Join with transaction data to identify user addresses and validate trade execution. Include metadata such as pool addresses, token pairs, and swap amounts.
- **Key fields**: `block_timestamp`, `transaction_hash`, `account_address` (pool), `fromToken` and `toToken` addresses, `fromAmount` and `toAmount` values, `user_address`

### Component B: Fee tier determination
- **Purpose**: Establish the fee percentage applicable to each pool at any given time
- **Logic**: Start with hardcoded initial fee tiers for each pool type, ranging from 0.00002 (0.002%) for cross-chain pools to 0.0025 (0.25%) for WOM-related pools. Apply dynamic updates from `SetHaircutRate` events where the fee tier value is extracted from the event's `value` parameter and converted from wei to decimal format. Use forward-filling logic to maintain fee tier values across days without updates, ensuring continuous coverage for all pools and time periods.
- **Key fields**: `timestamp`, `chain`, `account_address` (pool), `fee_tier` (as decimal percentage)

### Component C: Trading volume calculation
- **Purpose**: Convert raw token amounts to standardized USD trading volumes
- **Logic**: Aggregate trades by day and join with token metadata to correct decimal places by dividing token amounts by 10 raised to the token's decimal count. Join both tokens in each swap pair with end-of-day price feeds to calculate USD values. Apply anti-manipulation logic by taking the lesser USD amount between the two tokens in each pair, preventing inflated volumes from price discrepancies. Group trades by day, transaction, and pool to create daily trading volume aggregates.
- **Key fields**: `timestamp` (daily), `chain`, `account_address` (pool), `trading_volume` (USD), `token0_amount`, `token1_amount`, `fee_tier`

### Final aggregation
- **Combining components**: Join the trading volume data with the corresponding fee tiers based on timestamp, chain, and pool address to ensure each trade uses the correct fee percentage for that specific day and pool
- **Currency conversion**: All trading volumes are already converted to USD using end-of-day token prices, providing consistent fee calculations across different tokens and chains
- **Time aggregation**: Daily aggregation is applied at the trading volume level, with fees calculated per day per pool
- **Final calculation**: Multiply the USD trading volume by the applicable fee tier percentage using `safe_multiply(trading_volume, fee_tier)` to generate the fee amount in USD, then apply the `finalize_metric_fees` macro for standardization and filtering

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

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

Wombat ExchangeWOM

Fees

Fees

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