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BONKbot

# BONKbot Supply-side fees Methodology

## 1. Overview

The BonkBot fees supply-side metric measures the portion of fees that are distributed to supply-side participants (liquidity providers, market makers, or other service providers) in the BonkBot protocol. This metric represents the financial incentives paid to participants who provide services that enable the protocol's functionality.

For BonkBot, this metric is consistently set to zero, indicating that the protocol operates on a demand-side fee model where all collected fees are retained by the protocol rather than being shared with supply-side participants.

## 2. Data sources

The calculation relies on several underlying data sources:

- **Solana native token transfers**: Native SOL transfer records showing movements of SOL tokens between addresses on the Solana blockchain
- **Solana SPL token transfers**: SPL token transfer events capturing movements of various tokens on Solana, including ownership changes and amounts
- **End-of-day token price feeds**: Daily closing prices for tokens to enable USD conversion of fee amounts
- **Token metadata**: Information about token decimal places and other properties needed for accurate amount calculations

## 3. Step-by-step calculation

### Component A: SOL fee collection tracking
- **Purpose**: Identifies native SOL tokens sent to BonkBot as fees
- **Logic**: Extracts native SOL transfers where the recipient is the BonkBot fee collection address `ZG98FUCjb8mJ824Gbs6RsgVmr1FhXb2oNiJHa2dwmPd`. Filters out any transfers where the sender is also the fee collection address to avoid counting internal transfers. Records the transfer amount, timestamp, transaction details, and identifies the token as SOL using its standard address `So11111111111111111111111111111111111111112`
- **Key fields**: `block_timestamp` for timing, `transaction_id` for uniqueness, `transaction_signer` as the fee payer, `amount` as the fee quantity, and `token_address` set to SOL's identifier

### Component B: SPL token fee collection tracking  
- **Purpose**: Identifies SPL tokens sent to BonkBot as fees
- **Logic**: Extracts SPL token transfers where the recipient owner is the BonkBot fee collection address `ZG98FUCjb8mJ824Gbs6RsgVmr1FhXb2oNiJHa2dwmPd`. Excludes transfers where the transaction signer is the fee collection address to avoid internal movements. Captures the specific token address, transfer amount, and transaction details for each fee payment
- **Key fields**: `block_timestamp` for timing, `transaction_id` for tracking, `token_address` for the specific SPL token, `transaction_signer` as the payer, and `amount` as the fee quantity

### Component C: Daily fee aggregation
- **Purpose**: Combines and aggregates all fee data by day and token type
- **Logic**: Unions the SOL and SPL fee data streams, then groups by day (using timestamp truncation), chain identifier, product identifier, and token address. Sums all fee amounts within each group to get total daily fees collected per token type. Sets the timestamp grain to 'day' and chain identifier to 'solana'
- **Key fields**: `timestamp` truncated to day boundary, `timestamp_grain` set to 'day', `chain_id` as 'solana', `product_id` for protocol identification, `token_address` for token type, and `fees` as the aggregated amount

### Component D: USD conversion and decimal correction
- **Purpose**: Standardizes fee amounts in USD with correct decimal places
- **Logic**: Applies the `convert_to_usd_and_correct_decimals` transformation to the aggregated fee amounts. This process looks up the appropriate decimal places for each token and applies the correction (e.g., dividing by 10^9 for SOL). Then converts the corrected amounts to USD using end-of-day price feeds for each token on each day
- **Key fields**: Original fee amounts are transformed into USD-denominated values with proper decimal adjustment

### Final aggregation
- **Combining components**: The fee data flows through a finalization process that applies schema validation, ensures consistent field naming, and implements a fill strategy to handle missing days
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token prices, with proper decimal place corrections applied based on each token's specifications
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: The supply-side fees are explicitly set to zero (`0 as fees_supply_side`) for all records, regardless of the total fees collected. This indicates that BonkBot retains all collected fees rather than distributing any portion to supply-side participants like liquidity providers or other service contributors

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

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

BONKbot

Supply-side fees

Supply-side fees

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