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Coinshift

# Coinshift Supply-side fees Methodology

## 1. Overview

The Coinshift supply-side fees metric tracks fees paid to liquidity providers (supply-side participants) in Coinshift's vault protocols. However, based on Coinshift's fee structure, this metric consistently returns zero because the protocol retains 100% of fees as revenue rather than sharing them with liquidity providers. The calculation demonstrates that Coinshift operates a model where AUM fees generated from idle asset management go entirely to the protocol.

## 2. Data sources

The calculation relies on several key data sources:
- **External state data**: Daily idle asset balance snapshots from Coinshift's internal systems, tracking vault balances by market and timestamp
- **Blockchain events**: Parsed Ethereum `wUSDL_Deposit_event` and `wUSDL_Withdraw_event` logs from Coinshift's wrapped USDL token contract
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal correction
- **Configuration data**: Static vault configuration data including vault addresses, underlying token addresses, AUM fee rates, and product identifiers

## 3. Step-by-step calculation

### Component A: Idle asset balance tracking
- **Purpose**: Tracks daily balances of idle assets in Coinshift vaults that are subject to AUM fees
- **Logic**: Extracts daily balance snapshots from Coinshift's external state system, filtering for records with valid balance values starting from January 1, 2025. Each record contains the vault market identifier, balance amount, and timestamp. The data is joined with vault configuration data to associate each balance with the appropriate vault address, underlying token, AUM fee rate, and product identifier.
- **Key fields**: `timestamp` for daily boundaries, `market_id` for vault identification, `amount` for balance values, `vault_address` for vault contracts, `token_address` for underlying assets

### Component B: AUM fee calculation
- **Purpose**: Calculates time-based Assets Under Management fees on idle vault balances
- **Logic**: Uses window functions to calculate time intervals between consecutive balance snapshots for each token. For each interval (excluding the first record), applies the vault's AUM fee rate prorated by the actual time elapsed. The calculation multiplies the balance amount by the AUM fee rate and the fraction of the year represented by the time interval (using 31,536,000 seconds per year). Only vaults with non-zero AUM fee rates generate fees.
- **Key fields**: `attributed_aum_fee` for calculated fee amounts, `aum_fee_rate` for annual fee percentages, time intervals in seconds for proration

### Component C: Currency conversion
- **Purpose**: Converts wUSDL-denominated fees to USDL using blockchain-derived exchange rates
- **Logic**: Processes `wUSDL_Deposit_event` and `wUSDL_Withdraw_event` logs to derive conversion rates between wrapped USDL and underlying USDL tokens. Calculates daily average conversion rates by dividing wrapped token amounts by underlying asset amounts from these events. Applies these rates to convert any wUSDL fees to USDL equivalents, using a rate of 1.0 as fallback for missing conversion data.
- **Key fields**: `conversion_rate` derived from event ratios, `underlying_value` and `wrapped_value` from blockchain events

### Component D: Daily aggregation and USD conversion
- **Purpose**: Aggregates fees by day and converts to USD values
- **Logic**: Sums all fee amounts by timestamp, product, and token address to get daily totals. Applies Token Terminal's standard USD conversion process using end-of-day price feeds, correcting for token decimal places to normalize amounts. This ensures all fees are expressed in comparable USD terms regardless of the underlying token denomination.
- **Key fields**: `fee_amount` in token units and USD equivalents after conversion

### Final aggregation
- **Combining components**: Daily aggregated fees flow through currency conversion and USD conversion to produce the final fee amounts
- **Currency conversion**: wUSDL fees are converted to USDL using blockchain-derived exchange rates, then all fees are converted to USD using end-of-day price feeds
- **Time aggregation**: Fees are calculated on a daily basis with time-based proration for AUM fee intervals
- **Final calculation**: All calculated fees are assigned to the `revenue` field while `fees_supply_side` is hardcoded to 0.00, indicating that Coinshift retains 100% of fees as protocol revenue and does not share any fees with liquidity providers or supply-side participants

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

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

Coinshift

Supply-side fees

Supply-side fees

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