# Grove Allocator Fees Supply Side Methodology

## 1. Overview

Fees Supply Side measures the portion of generated fees or yield distributed to external supply-side participants, such as liquidity providers or infrastructure partners. For Grove Allocator, this metric represents the value shared with external entities from its yield-generating activities. Grove Allocator operates as a Sky Protocol allocator that borrows USDS at a 0% stability fee to deploy into diversified yield-bearing positions.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events

## 3. Step-by-step calculation

### Component A: Supply-side fee allocation

- **Purpose**: To identify the value distributed to external supply-side participants.
- **Logic**: Fees Supply Side is hardcoded to zero. This reflects that Grove Allocator does not currently distribute a portion of its earnings to external liquidity providers or infrastructure partners within the current accounting scope. All yield generated from deployed assets is retained or managed by the allocator without a designated supply-side fee distribution. Amounts are normalized by decimal precision and converted to USD.

*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

Asset management

Grove borrows via Sky's Allocator Module and deploys capital into curated yield strategies through an ALM (Asset-Liability Management) controller architecture. The protocol generates yield across its positions while management fees are settled off-chain via a Monthly Settlement Cycle between Grove and Sky DAO.

Grove operates as a programmable capital allocator that draws stablecoins from Sky Protocol and deploys them into diversified institutional-grade yield-bearing positions spanning tokenized treasuries, private credit, DeFi lending markets, and curated vaults across multiple chains.

Grove is a DeFi protocol built on Sky (formerly MakerDAO) infrastructure, incubated by Grove Labs and managed by Steakhouse Financial as risk curator.

Grove Allocator

Supply-side fees

Supply-side fees

Chain breakdown