Honeypop is an AMM and concentrated liquidity layer on Scroll, built for efficient swaps and real yield. It will also feature a Morpho-powered money market, enabling seamless lending and borrowing.

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Exchanges (DEX)

Honeypop

# Honeypop Supply-side fees Methodology

## 1. Overview

The Honeypop fees supply side metric measures the total fees earned by liquidity providers on the Honeypop decentralized exchange protocol. This metric captures supply-side revenue from two primary sources: trading fees from token swaps and flash loan fees. The calculation aggregates daily fee income across all trading pairs on the Scroll blockchain, representing the compensation paid to liquidity providers for providing capital to the protocol's liquidity pools.

## 2. Data sources

The calculation relies on several raw data sources:
- **Blockchain events**: Parsed `Pool_Swap_event` logs from Honeypop v1 contracts on Scroll capturing trading activity
- **Flash loan events**: Parsed `Pool_Flash_event` logs from Honeypop v1 contracts on Scroll recording flash loan usage
- **Pool creation data**: Parsed `Factory_PoolCreated_event` logs containing pool parameters including fee tiers and token addresses
- **Transaction data**: Scroll transaction records linking events to user addresses
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimals and symbols

## 3. Step-by-step calculation

### Component A: Trading volume processing
- **Purpose**: Processes swap events to calculate daily trading volumes in USD
- **Logic**: Extracts `Pool_Swap_event` logs from Honeypop v1 contracts on Scroll blockchain. Each swap event contains `amount0` and `amount1` fields representing token amounts exchanged. The system joins these events with pool creation data to identify token addresses and fee tiers. Token amounts are normalized by dividing by 10^decimals using token metadata. Normalized amounts are converted to USD using end-of-day price feeds. To prevent price manipulation attacks, the system uses the minimum USD value between the two tokens in each trade rather than summing them. Events are filtered to exclude denylisted trading pairs with poor price feed coverage. Data is aggregated daily by truncating timestamps to day boundaries.
- **Key fields**: `amount0`, `amount1` (raw token amounts), `address` (pool contract), `sender` (initiating address), normalized token amounts after decimal correction, USD values from price conversion

### Component B: Flash loan volume processing  
- **Purpose**: Processes flash loan events to calculate daily flash loan volumes in USD
- **Logic**: Extracts `Pool_Flash_event` logs from Honeypop v1 contracts capturing flash loan activities. Each event contains `amount0` and `amount1` fields for borrowed token amounts. Events are joined with pool creation data to get token addresses and fee tiers. Token amounts are normalized using decimal metadata and converted to USD using end-of-day price feeds. Unlike trading volume, flash loan volume sums both token USD amounts since flash loans don't involve trading between tokens. Events are filtered against the same denylist as trading events. Data is aggregated daily with timestamp truncation.
- **Key fields**: `amount0`, `amount1` (borrowed amounts), `sender` (borrowing address), normalized amounts, USD conversions, total flash loan volume per event

### Component C: Pool configuration data
- **Purpose**: Provides fee tiers and token information for fee calculations
- **Logic**: Processes `Factory_PoolCreated_event` logs from Honeypop factory contracts to extract pool configuration. Each event contains `pool` (pool address), `token0`, `token1` (paired token addresses), and `fee` (fee tier in basis points). Fee tiers are normalized by dividing by 10^6 to convert from basis points to decimal percentage. This data is joined with token metadata to get decimal places and symbols for proper amount normalization and display names.
- **Key fields**: `pool` address, `token0` and `token1` addresses, `fee` tier in basis points, normalized fee percentage, token decimals and symbols

### Component D: Fee calculation
- **Purpose**: Applies fee rates to volumes to calculate actual fees earned
- **Logic**: For each trading pair and day, multiplies the USD trading volume by the pool's fee tier percentage to calculate trading fees. Similarly multiplies flash loan volume by the same fee tier for flash loan fees. The fee tier represents the percentage of volume that goes to liquidity providers as compensation. Both fee streams are combined using UNION ALL to create a comprehensive fee dataset.
- **Key fields**: `trading_volume` in USD, `flash_loan_volume` in USD, `fee_tier` as decimal percentage, calculated `fees` amounts

### Final aggregation
- **Combining components**: Trading fees and flash loan fees are unioned together and aggregated by timestamp, chain, and product to create total daily fees per pool
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds matched by timestamp, token address, and chain
- **Time aggregation**: Events are grouped by day using timestamp truncation, with all activities within a 24-hour period aggregated together
- **Final calculation**: Total supply-side fees equal the sum of (trading_volume × fee_tier) plus (flash_loan_volume × fee_tier) for all pools and activities on each day, representing the total compensation paid to liquidity providers

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

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

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Supply-side fees

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