Lenders deposit assets into HyperLend and earn interest paid by borrowers (supply-side fees); the protocol keeps a share of that interest as revenue, set per reserve by the reserve factor.

HyperLend is a non-custodial lending protocol on HyperEVM. Core Pools are an Aave v3.2 friendly fork (pooled lending); Isolated Pools are a FraxLend v3 fork (isolated pair markets).

HPL tokenholders own and govern HyperLend, the credit and liquidity layer for the Hyperliquid ecosystem.

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Lending

HyperLend

# HyperLend Fees Methodology

## 1. Overview

Fees measures the total economic value paid by users to utilize HyperLend. The gross economic value generated by the protocol's lending markets is captured prior to any distribution between the protocol treasury and supply-side participants. Total fees are accumulated from three primary sources: interest accrued on active borrows, premiums paid for flash loans, and liquidation bonuses realized during collateral liquidations. This metric is utilized to evaluate the overall demand and revenue-generating capacity of the platform.

## 2. Data sources

- **Blockchain events**: `ReserveInitialized`, `ReserveFactorChanged`, and `LiquidationProtocolFeeChanged` events from `LendingPoolConfigurator` contracts, `FlashLoan`, `LiquidationCall`, and `MintedToTreasury` events from `LendingPool` contracts, ERC-20 `Transfer` events for aTokens, and on-chain treasury accrual state snapshots, covering HyperEVM
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Market initialization and parameter tracking

- **Purpose**: Establish active lending markets and track reserve and liquidation factors.
- **Logic**: Active lending markets are identified using `ReserveInitialized` events from `LendingPoolConfigurator` contracts. Daily reserve factors (which split borrower interest between the protocol and suppliers) and liquidation protocol fee factors (which determine the protocol's share of liquidation bonuses) are extracted from `ReserveFactorChanged` and `LiquidationProtocolFeeChanged` events from `LendingPoolConfigurator` contracts. These factors are forward-filled to ensure a continuous daily record for each lending market.
- **Key fields**: `token_address`, `reserve_factor`, `liquidation_factor`

### Component B: Borrower interest fee calculation

- **Purpose**: Calculate the total interest paid by borrowers.
- **Logic**: Total interest accrued to the protocol is reconstructed by combining realized interest and still-accruing interest. Realized interest is captured by aggregating cumulative minted assets from `MintedToTreasury` events from `LendingPool` contracts. Still-accruing interest is extracted from daily on-chain treasury accrual state snapshots. The daily protocol interest revenue is calculated as the day-over-day delta of this combined cumulative interest. Total borrower interest fees are then calculated by dividing the daily protocol interest revenue by the daily reserve factor, which reconstructs the gross interest paid before the supply-side split.
- **Key fields**: `amount`, `treasury_accruals`

### Component C: Flash loan fee extraction

- **Purpose**: Capture fees paid for flash loan execution.
- **Logic**: Flash loan premium fees are extracted directly from `FlashLoan` events emitted by `LendingPool` contracts. The premium amount, which is defined as the total fee charged on the loan, is aggregated daily per asset.
- **Key fields**: `amount`

### Component D: Liquidation fee calculation

- **Purpose**: Calculate the total fees generated from collateral liquidations.
- **Logic**: Liquidation events are identified using `LiquidationCall` events from `LendingPool` contracts. The protocol's share of the liquidation bonus is determined by tracking ERC-20 `Transfer` events of collateral aTokens from the liquidated user's address to the protocol treasury address. The total liquidation fee, which is composed of both the protocol share and the liquidator's supply-side share, is calculated by dividing this protocol revenue by the daily liquidation protocol fee factor.
- **Key fields**: `amount`, `token_address`

### Component E: USD conversion and aggregation

- **Purpose**: Normalize fee components and aggregate them into a single daily metric.
- **Logic**: All fee components (borrower interest, flash loan premiums, and liquidation fees) are aggregated by day, asset, and market. Raw asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. The final daily Fees metric is calculated as the sum of these converted USD values across all income types.
- **Key fields**: `price_usd`

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

Fees

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