Liquidity providers deposit funds into Clipper and receive returns generated by Clipper’s costless diversified rebalancing liquidity pools (supply-side fees). LP yields are generated from the rebalancing process itself rather than from fees charged to traders.

Clipper is a non-custodial exchange protocol built on Ethereum. Clipper was built by Shipyard Software and launched in 2021.

AdmiralDAO and SAIL token holders own and govern the protocol. They currently receive all trading fees paid by traders (revenue). Clipper's investors include Polychain, Robot Ventures, 0x Labs, etc.

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# Clipper Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of total trading fees that Clipper protocol distributes to liquidity providers, after deducting protocol fees. This metric tracks the daily USD value of fees earned by liquidity providers across Clipper's decentralized exchange on Ethereum, Polygon, Optimism, and Arbitrum. The calculation applies time-based protocol fee adjustments to determine how much of the total fees flows to the supply side versus the protocol.

## 2. Data sources

The calculation combines multiple blockchain data sources:
- **Subgraph event data**: Parsed `SwappedV1Event` logs from TheGraph subgraphs for Clipper V1 on Ethereum and Polygon, containing swap transaction details including output amounts and token addresses
- **Scraper swap data**: Clipper's internal scraper data covering swap transactions on Ethereum, Polygon, Optimism, and Arbitrum with pre-calculated USD amounts for inputs and outputs
- **Token metadata**: Token contract information including decimal places and symbols for proper amount normalization
- **End-of-day price feeds**: Daily token price data for USD conversion of fees collected in various tokens
- **Chain availability data**: Information about when each blockchain network was supported by Clipper

## 3. Step-by-step calculation

### Component A: Subgraph fee collections
- **Purpose**: Extract detailed fee data from blockchain events on Ethereum and Polygon
- **Logic**: Process `SwappedV1Event` logs from TheGraph subgraphs, applying a fixed 0.2% fee rate to the `outAmount` of each swap. Handle native token swaps by converting null addresses to wrapped native token addresses (WETH on Ethereum, WMATIC on Polygon). Extract transaction details including `blockTimestamp`, `transactionHash`, `logIndex`, and contract `address`
- **Key fields**: Event data includes `outAsset` (token address), `outAmount` (swap output quantity), with calculated `token_amount` as 0.2% of the output amount

### Component B: Scraper fee collections  
- **Purpose**: Capture fee data from Clipper's internal data collection across four chains
- **Logic**: Process swap records from Clipper's scraper system covering Ethereum, Polygon, Optimism, and Arbitrum. Calculate fees as the USD difference between `amountInUsd` and `amountOutUsd`, representing the value extracted during the swap. Filter out any swaps involving CLP tokens (Clipper's native token). Extract timing information from `timestamp` and transaction identifiers
- **Key fields**: USD amounts include `amountInUsd` and `amountOutUsd`, with `fees` calculated as the positive difference between input and output values

### Component C: Fee processing and standardization
- **Purpose**: Normalize and convert fee data to consistent USD values
- **Logic**: For subgraph data, apply decimal correction based on token metadata to convert raw amounts to proper token quantities, then use end-of-day price feeds to convert token amounts to USD values. For scraper data, fees are already in USD. Aggregate both fee sources by day, grouping by timestamp, chain, business line, market sector, business segment, product, and version. Apply zero-filling to ensure continuous daily records
- **Key fields**: Processing creates standardized `fees` amounts in USD, `timestamp` for daily aggregation, and `chain` for network identification

### Component D: Protocol fee adjustment
- **Purpose**: Calculate the supply-side portion by applying protocol fee deductions
- **Logic**: Apply time and chain-specific protocol fee logic. For Ethereum transactions before August 1, 2023, multiply total fees by 50% to determine supply-side allocation (protocol takes 50%). For Ethereum transactions on or after August 1, 2023, set supply-side fees to zero (protocol takes 100%). For all other chains (Polygon, Optimism, Arbitrum), supply-side fees equal total fees since no protocol fee is collected
- **Key fields**: Time boundaries use `timestamp` comparison with hardcoded dates, chain identification uses `chain_id`, and the result is `fees_supply_side`

### Final aggregation
- **Combining components**: Union the processed subgraph and scraper fee data, then aggregate by summing fees for each day-chain-product combination
- **Currency conversion**: USD conversion applied to subgraph-sourced token amounts using end-of-day price feeds, while scraper data maintains existing USD values
- **Time aggregation**: Daily aggregation using timestamp truncation to day boundaries, with zero-filling applied for missing dates to ensure continuous time series
- **Final calculation**: Supply-side fees equal total aggregated fees multiplied by the appropriate protocol fee factor (50% for pre-August 2023 Ethereum, 0% for post-August 2023 Ethereum, 100% for all other chains)

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

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

ClipperSAIL

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown