# Hyperbridge Substrate Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of transaction and messaging fees that is distributed to infrastructure providers, including relayers and validators. This metric represents the share of total user-paid fees that is not retained by the protocol treasury, serving as compensation for the decentralized actors who secure the network and facilitate cross-chain communication. Supply-side fees are calculated for Hyperbridge Substrate by identifying total fee collection and subtracting the portion allocated to the protocol treasury.

## 2. Data sources

- **Blockchain events**: `AccumulateFees` events from the `relayer` pallet, `FeePaid` events from the `messagingFees` pallet, `Transfer` events from the `balances` pallet, and `TransactionFeePaid` events, covering Hyperbridge Substrate
- **External data**: End-of-day price feeds for native assets and stable assets

## 3. Step-by-step calculation

### Component A: Chain-level fee extraction

- **Purpose**: Captures the base transaction fees and tips paid for executing extrinsics on the network.
- **Logic**: `TransactionFeePaid` events are parsed to extract both the base fee amount and any additional tips provided by users. These components are summed to determine the total gas-related expenditure for every successful transaction.
- **Key fields**: `amount` (base transaction fee), `tip` (optional priority fee)

### Component B: Bridge and relayer fee extraction

- **Purpose**: Captures specialized fees associated with cross-chain messaging and relayer operations.
- **Logic**: `AccumulateFees` events from the `relayer` pallet and `FeePaid` events from the `messagingFees` pallet are parsed. These fees are typically denominated in DAI or native assets. Amounts are normalized by decimal precision based on the specific asset used for payment.
- **Key fields**: `event_pallet` (pallet identification), `event_method` (fee event type), `amount` (fee value)

### Component C: Protocol revenue identification

- **Purpose**: Determines the portion of collected fees that is directed to the protocol treasury rather than supply-side participants.
- **Logic**: `Transfer` events from the `balances` pallet are monitored for the designated treasury address. Incoming transfers to this address are classified as protocol revenue, while transfers originating from known administrative or founder addresses are excluded to maintain accuracy.
- **Key fields**: `to_address` (treasury recipient), `from_address` (sender identification), `amount` (transfer value)

### Component D: Supply-side fee aggregation and USD conversion

- **Purpose**: Calculates the final net value distributed to service providers and normalizes the data to USD.
- **Logic**: Total fees are aggregated from chain-level and bridge-level components. Supply-side fees are calculated by subtracting protocol revenue from these total fees. All values are normalized by decimal precision and multiplied by end-of-day price feeds for the respective assets. Daily totals are aggregated using UTC day boundaries.
- **Key fields**: `fees` (total collection), `revenue` (treasury share)

*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

Blockchains (L1)

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Hyperbridge Substrate

Archived

Supply-side fees

Supply-side fees

Chain breakdown