Users deposit ETH or LSTs on Ethena and can mint a USDe synthetic stablecoin in return. USDe generates yield from the staked Ethereum as well as the funding & basis spread from perpetual and futures' markets. A portion of this yield is then distributed to USDe stakers (expense).

Ethena is a stablecoin issuer and asset management protocol built on Ethereum. Ethena was founded by Guy Young and launched in 2024.

ENA tokenholders own and govern the protocol. They currently take a cut of the total yield generated (revenue). Ethena's investors include Dragonfly, Franklin Templeton, Brevan Howard Digital, etc.

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Ethena

# Ethena Supply-side fees Methodology

## 1. Overview

Supply-side fees represent fees paid to participants who provide liquidity or assets to a protocol. For Ethena, this metric is consistently set to zero because Ethena's business model does not distribute fees to supply-side participants such as liquidity providers or asset suppliers. Instead, all fees generated by the protocol are retained as protocol revenue or distributed through other mechanisms not classified as supply-side fees.

## 2. Data sources

The underlying fee calculation (which is then set to zero) relies on:
- **Ethereum token transfer events**: Parsed `Transfer` events from Ethereum to track fee distributions to specific Ethena addresses
- **Ethena USDe token mint events**: Parsed `Transfer` events from the null address representing new Ethena USDe token issuance
- **End-of-day token price feeds**: Price data for USD conversion of fee amounts across different tokens
- **Token metadata**: Decimal place information for proper unit conversions across different ERC-20 tokens

## 3. Step-by-step calculation

### Component A: Fee transfer tracking
- **Purpose**: Identifies actual fee distributions to various Ethena addresses
- **Logic**: Tracks token transfers to three categories of addresses: transfers to the main Ethena USDe payout multisig at `0x71e4f98e8f20c88112489de3dded4489802a3a87`, USDC and USDT transfers to partner payout multisigs at `0xd0ec8cc7414f27ce85f8dece6b4a58225f273311` and `0xf19c433c6b288e487b767595886321f89a3cbf17`, and a specific transaction to the insurance fund at `0x2b5ab59163a6e93b4486f6055d33ca4a115dd4d5` with hash `0x7746847f42ae754f9a904a7af0d57dd6019952f3e8d244528c7b1a53c8e009d7`
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `token_address` for fee token type, `from_address` and `to_address` for transfer direction, and `amount` for fee quantity

### Component B: Mint fee calculation
- **Purpose**: Calculates implicit fees generated from Ethena USDe token minting activity
- **Logic**: Identifies Ethena USDe mints by filtering for transfers from the null address `0x0000000000000000000000000000000000000000` to any recipient for the Ethena USDe token contract `0x4c9edd5852cd905f086c759e8383e09bff1e68b3`, then applies a 0.1% fee rate to the minted amount
- **Key fields**: `block_timestamp` for timing, `token_address` confirming Ethena USDe contract, `from_address` confirming null address origin, and `amount` for mint volume

### Component C: USD conversion and aggregation
- **Purpose**: Standardizes all fee amounts to USD and aggregates by day
- **Logic**: Converts token amounts to USD using end-of-day price feeds, applies decimal corrections based on token specifications, truncates timestamps to daily boundaries, and sums all fees by day, product, and chain
- **Key fields**: `timestamp` truncated to day, `chain_id` for blockchain identification, `product_id` set to 'Ethena USDe', and `fees` for USD-converted amounts

### Final calculation
- **Supply-side override**: Despite the underlying fee calculation capturing actual protocol fees through transfer tracking and mint fee calculations, the supply-side fees metric explicitly sets all values to zero with the logic `0 as fees_supply_side`
- **Rationale**: This override reflects Ethena's business model where fees are retained as protocol revenue rather than distributed to supply-side participants like liquidity providers or asset suppliers
- **Result**: The final metric consistently reports zero supply-side fees across all time periods and chains, indicating that Ethena does not operate a fee-sharing mechanism with 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.

EthenaENA

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown