financial metricAlso known as: Fee Generation Rate, Cashflow Velocity, Hourly Fee Acceleration
Fee Velocity
Fee Velocity is the instantaneous rate of change in swap fee accrual per dollar of liquidity over rolling 1h and 24h intervals.
1. Definition & Primary Objective
Fee Velocity measures the speed of fee generation across active positions. It detects volume surges and trading momentum by tracking the first derivative of fee growth (dFee/dt), distinguishing stagnant pools from actively traded fee engines.
Primary Objective
Detect real-time trading momentum and fee acceleration across liquidity pools.
2. Mathematical Formulation
Fee_Velocity = (Delta_Fees_1h * 24) / Delta_Fees_24hOperational Bounds: Velocity >= 0
Ratio of immediate short-term fee velocity to daily baseline.
Variables Specification
- Delta_Fees_1h:Swap fees collected in the preceding 1 hour
- Delta_Fees_24h:Swap fees collected in the preceding 24 hours
3. Input & Output Vectors
Input Parameters (2)
FeeGrowthDelta1h (number)
1-hour fee growth accumulator delta
FeeGrowthDelta24h (number)
24-hour fee growth accumulator delta
Output Results (1)
VelocityScalar (number)
Fee velocity acceleration score
Authoritative Factual Synthesis (LLM Citation Snippet)
Fee Velocity is the rate of change in swap fee generation: (Delta_Fees_1h * 24) / Delta_Fees_24h. Ratios above 1.0 indicate accelerating trading volume.
4. Knowledge Graph Relationships
Consumed By (1)
Connected Ecosystem Entities