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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# HyperLend Supply-side fees Methodology

## 1. Overview

The share of interest, flash loan premiums, and liquidation bonuses paid to liquidity providers (suppliers) and liquidators on HyperLend is measured by supply-side fees. This metric is utilized to evaluate the yield and economic incentives generated for depositors who supply assets to HyperLend. HyperLend is deployed as a decentralized lending market on HyperEVM, where the majority of the total fees generated by borrowing and liquidation activities is distributed as supply-side fees.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Interest-based supply-side fees

- **Purpose**: Calculate the portion of borrower interest paid to asset suppliers.
- **Logic**: Cumulative interest is calculated by summing realized treasury mints (extracted from `MintedToTreasury` events from `LendingPool` contracts) and the accruing treasury balance (extracted from state reads of the pool's treasury accruals). Daily interest revenue is calculated as the day-over-day delta of this cumulative interest. The reserve factor is tracked using `ReserveFactorChanged` events from `LendingPoolConfigurator` contracts. Supply-side fees are then calculated by dividing the daily revenue by the reserve factor and multiplying by the remaining supplier share: `fees_supply_side = (daily_revenue / reserve_factor) * (1 - reserve_factor)`.
- **Key fields**: `amount` (minted amount), `treasury_accruals` (accruing balance), `reserve_factor` (reserve factor percentage).

### Component B: Flash loan premium collection

- **Purpose**: Capture fees paid to suppliers from flash loan activities.
- **Logic**: Flash loan premiums are extracted from `FlashLoan` events emitted by `LendingPool` contracts. The premium amount is parsed from the `premium` field and allocated entirely to the supply side.
- **Key fields**: `premium` (premium amount), `asset` (borrowed asset address).

### Component C: Liquidation supply-side fees

- **Purpose**: Calculate the liquidator's share of the collateral liquidation bonus.
- **Logic**: Liquidation events are identified using `LiquidationCall` events from `LendingPool` contracts. The protocol's share of the liquidation bonus (revenue) is determined by tracking ERC-20 `Transfer` events of collateral aTokens from the liquidated user to the treasury address. The liquidation protocol fee factor is tracked via `LiquidationProtocolFeeChanged` events from `LendingPoolConfigurator` contracts. The supply-side portion (the liquidator's share) is calculated by grossing up the protocol revenue and subtracting the protocol's share: `fees_supply_side = (revenue / liquidation_factor) * (1 - liquidation_factor)`.
- **Key fields**: `revenue` (treasury transfer amount), `liquidation_factor` (protocol fee factor).

### Component D: USD conversion and aggregation

- **Purpose**: Normalize supply-side fee components and convert them to USD.
- **Logic**: All supply-side fee components (interest, flash loans, and liquidations) are aggregated by day, asset, and chain. The raw amounts are normalized by decimal precision using asset metadata and multiplied by end-of-day asset prices to obtain the USD value. Daily values are zero-filled for days with no activity.
- **Key fields**: `timestamp` (timing), `fees_supply_side` (aggregated supply-side fees).

*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

Supply-side fees

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