Methodology

The fees of the swaps was calculated using the terra.swaps table in combination with the swap_fee_amount_usd column.

The fees of the transactions were calculated using the terra.transactions table. This table has a column called fee. Unfortunately, the table does not include the usd value of the fee so this had to be calculated manually. Depending on the transaction, the fee can be paid in any of the Terra stablecoins. Therefore, to find the usd value of the fee, the terra.oracle_prices table was used to calculate the average daily price used for all stable coins. Then the prices and amounts were multiplied and summed to get the total daily fee amount grouped by stablecoin (including Luna).

Introduction

In this dashboard, we will analyse the relationship between transaction volume and the fees paid to stakers in the Terra ecosystem. In short, it comes down to this: "At the end of every block, transaction fees are distributed to each validator and their delegators proportional to their staked amount." This is from the Terra docs explaining that transaction fees are used to incentivise users to stake their coins. When there are more transactions, the amount of fees generated from transactions and swaps will be higher. The term volume refers to the total number of transactions per time unit times the sum of the size of the transactions. Therefore, higher transactions volume means more fees generated, which in turn means more income paid to stakers.

In this dashboard, we will differentiate between fees generated from native swaps (Swaps between terra coins) and transactions (For instance, a deposit on Anchor). We will look at the daily amount on fees generated in USD for both.

Native swaps

Transactions

Key findings

• There is a strong correlation between volume and fees paid to stakers
• Higher volume indicates more fees paid to stakers
• The majority of the transaction fees are paid in UST

As we can see, there is a strong correlation between volume and daily fees generated from native swaps.

From the transactions, we can extract a bit more information. I coloured the fees paid in UST red, Luna blue and KRT white. We can see that the majority of the total daily transactions fees comes from UST.