# Liquid Fees Methodology

## 1. Overview

Fees measures the total economic value generated by the Liquid product through automated vault strategies and asset rebase mechanisms. This includes yield accrued from share price appreciation in Liquid vaults and exchange rate adjustments for specific staked assets. These fees represent the gross value created for users and the protocol before any distributions or performance fee deductions.

## 2. Data sources

- **Blockchain events**: `accountantState` and `totalSupply` state reads from `Accountant` and `Vault` contracts, covering Ethereum and HyperEVM
- **External data**: End-of-day price feeds for underlying assets

## 3. Step-by-step calculation

### Component A: Liquid vault yield tracking

- **Purpose**: Capture yield generated by share value changes in Liquid vaults on Ethereum
- **Logic**: `accountantState` state reads from `Accountant` contracts are parsed to extract `exchange_rate` and `total_shares`. Daily yield is calculated by multiplying the previous day's total shares by the change in the exchange rate. These values are normalized by the decimal precision of the `Accountant` contract and the underlying base asset.
- **Key fields**: `exchange_rate`, `total_shares`, `accountant_address`

### Component B: BeHYPE yield calculation

- **Purpose**: Capture yield from `BeHYPE` asset rate changes on HyperEVM
- **Logic**: `totalSupply` and exchange rate state reads are extracted for the `BeHYPE` asset. Yield is calculated by multiplying the total supply by the daily change in the `BeHYPE`-to-`HYPE` exchange rate.
- **Key fields**: `total_supply`, `behype_to_hype_rate`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize yield values to USD and aggregate across vault groups
- **Logic**: Yield amounts are normalized by decimal precision and multiplied by end-of-day price feeds to determine USD values. Daily totals are aggregated across all supported chains and vault groups, including ETH, BTC, and USD-denominated vaults. Daily granularity is maintained with UTC day boundaries.
- **Key fields**: `timestamp`, `vault_group`, `amount` (yield)

*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

Stakers deposit funds into Ether.fi and receive a return on investment in the form of staking rewards (supply-side fees).

Ether.fi is a non-custodial staking protocol built on Ethereum and other blockchains. Ether.fi was founded by Mike Silagadze and launched in 2023.

Ether.fi team & investors own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Ether.fi’s investors include North Island Ventures, Chapter One, Node Capital, and Arthur Hayes.

Liquid

Fees

Fees

Chain breakdown