# Bifrost Liquid Staking Fees Methodology

## 1. Overview

Fees measures the total value paid by users to access liquid staking services and yield-bearing assets on Bifrost Liquid Staking. This metric captures the economic value generated through service-level hosting fees, redemption penalties, and staking commissions across the supported asset suite. These fees reflect the total cost to users for maintaining staked positions and utilizing the protocol's liquid staking infrastructure.

## 2. Data sources

- **Blockchain events**: `HostingFeeCharged` events from `slp` pallets, `ChannelClaimableCommissionUpdated` events from `channelCommission` pallets, `Payout` events from `systemStaking` pallets, and `Redeemed` and `Minted` events from `vtokenMinting` pallets, covering Bifrost Substrate.
- **External data**: End-of-day price feeds for underlying staked assets and asset metadata.

## 3. Step-by-step calculation

### Component A: Liquid Staking hosting fees

- **Purpose**: Captures the service fees generated by the Bifrost Liquid Staking protocol (SLP).
- **Logic**: `HostingFeeCharged` events are parsed from `slp` pallets. The raw fee values represent the protocol's 10% commission take; therefore, these values are grossed up by a factor of ten to reflect the total fees paid by users.
- **Key fields**: `fees` (raw commission amount).

### Component B: Channel commission and system staking fees

- **Purpose**: Captures fees generated through partner channels and native system staking payouts.
- **Logic**: `ChannelClaimableCommissionUpdated` events are parsed from `channelCommission` pallets and `Payout` events are parsed from `systemStaking` pallets. These values are recorded as both fees and revenue, representing the value generated by these specific staking sub-products.
- **Key fields**: `fees` (event data).

### Component C: Redemption fees

- **Purpose**: Captures fees paid by users when redeeming liquid staking tokens for underlying assets.
- **Logic**: `Redeemed` events are parsed from `vtokenMinting` pallets. The fee amount is extracted from the event data and added to the total fee aggregation for the liquid staking product.
- **Key fields**: `fees` (fifth element in the event data array).

### Component D: vToken valuation and normalization

- **Purpose**: Determines the correct valuation of yield-bearing vTokens relative to their underlying assets.
- **Logic**: A price ratio is calculated using `Minted` events from `vtokenMinting` pallets by dividing the underlying asset amount by the minted vToken amount. This ratio is applied to the collected fees to ensure the value reflects the current exchange rate of the liquid staking token. Fee amounts are then normalized by the specific decimal precision for each asset based on internal metadata mappings.
- **Key fields**: `token_amount`, `v_token_amount`, `decimals`.

### Component E: USD conversion and final aggregation

- **Purpose**: Normalizes all fee components into a common currency (USD) for reporting.
- **Logic**: Normalized fee amounts are multiplied by the end-of-day price feeds corresponding to the underlying asset. All fee components (hosting, channel, system staking, and redemption) are summed to provide a daily total for Bifrost Liquid Staking. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `fees`, `coingecko_id`, `timestamp`.

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

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

Fees

Liquid staking

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Bifrost is the Staking Yield Layer app-chain for stablecoins, RWAs, and DeFi, powered by the Polkadot Relay chain.

BNC holders own and govern the protocol. Bifrost’s investors include OKX Ventures, Long Hash Ventures, etc.

Bifrost Liquid Staking

Archived

Fees

Fees

Chain breakdown