Lenders deposit funds into Euler and receive interest payments from borrowers (supply-side fees).

Euler is a non-custodial lending protocol built on Ethereum. Euler was founded by Michael Bentley, Doug Hoyte & Jack Prior and launched in 2021.

EUL tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Euler’s investors include Paradigm, Lemniscap, Launchhub Ventures, etc.

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Euler

# euler Fees Supply Side Methodology

## 1. Overview

Fees Supply Side measures the interest income earned by liquidity providers on Euler V2. This value represents the portion of total interest paid by borrowers that is distributed to lenders, excluding the protocol's fee share. This metric is utilized to assess the yield generated for supply-side participants across various lending vaults.

## 2. Data sources

- **Blockchain events**: `ProxyCreated` events from `EVaultFactory` contracts, plus `GovSetInterestFee`, `VaultStatus`, and `ConvertFees` events from `EVault` contracts, covering Ethereum, Base, Sonic, Avalanche, and 7 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Market and fee parameter identification

- **Purpose**: Identify active lending vaults and their respective protocol fee configurations
- **Logic**: Vault addresses and their underlying assets are identified from `ProxyCreated` events emitted by `EVaultFactory` contracts. Protocol interest fee rates are extracted from `GovSetInterestFee` events from `EVault` contracts, with a default rate applied to initialized markets. These rates are filled forward to ensure continuous coverage across the time series.

### Component B: Interest accrual and fee tracking

- **Purpose**: Calculate the change in accumulated fees and the current vault exchange rate
- **Logic**: `VaultStatus` events from `EVault` contracts are parsed to track `accumulated_fees`, `total_borrows`, `total_shares`, and `cash`. The exchange rate is calculated as the sum of cash and total borrows divided by total shares. Fee deltas are determined by comparing current and previous accumulated fee values. When fee conversions occur, as indicated by `ConvertFees` events, the delta is adjusted to include protocol and governor shares.

### Component C: Supply-side fee derivation

- **Purpose**: Calculate the portion of interest allocated to liquidity providers
- **Logic**: Total interest revenue is first calculated by multiplying the fee delta by the vault exchange rate and normalizing by decimal precision. Supply-side fees are then derived by dividing the revenue by the protocol interest fee rate and multiplying by the remaining percentage (1 minus the interest fee rate). This isolates the interest income retained by lenders.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize values to USD for cross-chain and cross-asset comparison
- **Logic**: Supply-side fee amounts are multiplied by end-of-day price feeds for the underlying assets. Data is aggregated by day using UTC day boundaries.

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

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

EulerEUL

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown