# Liquid Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of yield generated by Liquid vaults that is distributed to depositors. This metric represents the net earnings for liquidity providers after the protocol's management and performance fees are deducted. For the Liquid product, these fees are primarily derived from the organic appreciation of vault assets and specialized yield-bearing assets like BeHYPE.

## 2. Data sources

- **Blockchain events**: State readings from vault accountant contracts and BeHYPE rate contracts, covering Ethereum and HyperEVM
- **External data**: End-of-day price feeds for base assets including ETH, BTC, and USDC

## 3. Step-by-step calculation

### Component A: Liquid vault yield tracking

- **Purpose**: Calculate the gross yield generated by vault assets through share price appreciation.
- **Logic**: State readings are parsed from vault accountant contracts 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 between the current and previous day. This calculation is performed for various vault groups, including ETH, BTC, and USD-based strategies.
- **Key fields**: `exchange_rate`, `total_shares`, and `accountant_address`.

### Component B: BeHYPE yield tracking

- **Purpose**: Capture yield specifically generated by the BeHYPE asset on HyperEVM.
- **Logic**: The `total_supply` of BeHYPE is multiplied by the daily change in the `behype_to_hype_rate`. This yield represents the appreciation of the BeHYPE asset relative to its underlying HYPE collateral.
- **Key fields**: `behype_to_hype_rate` and `total_supply`.

### Component C: Protocol revenue deduction

- **Purpose**: Determine the net portion of fees remaining for supply-side participants.
- **Logic**: Protocol revenue is calculated by applying management fee percentages (platform fees) to the total capital deployed in the vaults. These management fees are typically accrued daily as a basis point take on the total vault value. Supply-side fees are then finalized by subtracting this protocol revenue from the total gross yield calculated in Components A and B.
- **Key fields**: `platform_fee` (bps) and `revenue`.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all fee values to USD for consistent reporting.
- **Logic**: Raw asset amounts are normalized by decimal precision based on asset metadata. These values are then multiplied by end-of-day price feeds for the respective base assets. Data is aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `token_address`, `block_timestamp`, and `amount`.

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

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

Supply-side 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

Supply-side fees

Supply-side fees

Chain breakdown