Lenders deposit funds into BendDAO and receive interest payments from borrowers (supply-side fees). BendDAO has other business lines in addition, however this dashboard only tracks the BendDAO lending protocol.

BendDAO is a non-custodial NFT lending protocol built on Ethereum. BendDAO was founded by an anonymous team and launched in 2021.

BEND tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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# BendDAO Supply-side fees Methodology

## 1. Overview

The Supply-side fees metric represents the share of interest paid by borrowers that is distributed to liquidity providers (depositors) on BendDAO. This metric is used to represent the primary incentive for users to supply assets to the protocol's lending pools. The portion of interest that is not retained by the protocol treasury is tracked to evaluate the yield generated for supply-side participants.

## 2. Data sources

- **Blockchain events**: `Mint` events from `BToken` contracts and `ReserveFactorChanged` events from `LendPoolConfigurator` contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Reserve factor tracking

- **Purpose**: The determination of the active reserve factor for each market over time.
- **Logic**: `ReserveFactorChanged` events from `LendPoolConfigurator` contracts are parsed. Raw factor values are normalized by dividing by 10,000. Active intervals for each reserve factor are established by ordering the events by block number and log index to ensure the correct factor is applied to subsequent mint events.
- **Key fields**: `block_timestamp`, `token_address`, `reserve_factor`

### Component B: Protocol revenue extraction

- **Purpose**: The capture of interest accrued by the protocol treasury.
- **Logic**: `Mint` events from `BToken` contracts are parsed. Events are filtered to include only those where the sender matches the collector address, representing treasury mints. These mints are mapped to allowlisted BendDAO V1 markets (such as WETH and USDT) using the contract addresses.
- **Key fields**: `block_timestamp`, `account_address`, `amount`

### Component C: Supply-side fee calculation

- **Purpose**: The calculation of the portion of borrower interest distributed to depositors.
- **Logic**: Protocol revenue (treasury mints) is joined with the active reserve factor for the corresponding asset and block. Total fees (total interest paid by borrowers) are calculated by dividing the revenue by the reserve factor. Supply-side fees are then calculated by multiplying the total fees by the remaining share of interest (one minus the reserve factor).
- **Key fields**: `revenue`, `reserve_factor`, `fees_supply_side`

### Component D: USD conversion and aggregation

- **Purpose**: The normalization of supply-side fees to USD and daily aggregation.
- **Logic**: Calculated supply-side fee amounts are normalized by the decimal precision of each underlying asset using asset metadata. The normalized amounts are multiplied by end-of-day asset prices to convert them to USD. The values are aggregated daily using UTC day boundaries.
- **Key fields**: `timestamp`, `fees_supply_side`, `price_usd`

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

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

BendDAOBEND

Supply-side fees

Supply-side fees

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