# Hyperliquid Outcome Markets Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of transaction fees generated on Hyperliquid Outcome Markets that is distributed to service providers rather than retained by the protocol. Frontend creators and interface builders who facilitate user trades are compensated through these builder-code tips. This metric is utilized to analyze the economic incentives provided to external developers and ecosystem contributors who drive volume to the platform. By isolating these pass-through fees, the net revenue retained by the protocol is accurately distinguished from the total fees paid by users.

## 2. Data sources

- **Blockchain events**: Fill and trade events from HyperCore, covering HyperCore

## 3. Step-by-step calculation

### Component A: Outcome markets fill extraction

- **Purpose**: Identify and extract trade fills specifically for Hyperliquid Outcome Markets.
- **Logic**: Fill events from HyperCore are filtered where the asset identifier starts with the prefix `#`, which designates Hyperliquid Outcome Markets. The total fee and the builder fee (representing the builder-code tip) are extracted from each fill event. For historical events where block numbers are not present, builder fees are treated as null and default to zero.
- **Key fields**: `coin`, `fee`, `builder_fee`, `fee_token`

### Component B: Asset pricing and USD conversion

- **Purpose**: Determine the daily end-of-day price for fee assets and normalize fee values to USD.
- **Logic**: The latest transaction price for each asset is extracted from daily fill and trade events on HyperCore to establish an end-of-day price. The extracted fee and builder fee amounts are converted to USD by multiplying them by the corresponding end-of-day asset price. For USD-denominated assets (such as USDC or USD), the conversion factor is set to one.
- **Key fields**: `price`, `eod_price_usd`

### Component C: Supply-side fee aggregation

- **Purpose**: Aggregate the daily supply-side fees for Hyperliquid Outcome Markets.
- **Logic**: The USD-valued builder fees are summed by day to calculate the total daily supply-side fees. Since deployer fees (HIP-3 cuts) are only applicable to deployer-prefixed perpetual markets and do not apply to native outcome markets, they are excluded from this calculation. The final supply-side fees are represented by the total builder-code tips distributed to frontend service providers.
- **Key fields**: `builder_fees`, `fees_supply_side`

*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

Prediction markets

Hyperliquid generates revenue through on-chain perpetual futures and spot trading, facilitated by its HyperCore execution layer. Every order, trade, and liquidation occurs on-chain with one-block finality, enabling ultra-low latency and transparent trading. Liquidity providers and market makers earn supply-side fees from bid-ask spreads and transaction rebates, while network participants can earn governance and staking rewards via the HYPE token.

Hyperliquid is a layer-one (L1) blockchain purpose-built for trading and decentralized finance. It combines: HyperCore, the high-performance trading engine powering perpetuals, spot markets, and oracles; HyperEVM, a fully compatible smart contract layer enabling developers to build DeFi applications such as lending, vaults, governance, bridges, and stablecoins directly on-chain. Its consensus mechanism, HyperBFT, is a custom algorithm inspired by HotStuff, optimized for throughput (200k+ orders/sec) and deterministic finality. The HYPE token underpins the network, granting holders rights to participate in governance, staking, and securing the protocol — effectively letting users own a share of the Hyperliquid ecosystem.

HYPE tokenholders own, govern, and secure the Hyperliquid network through on-chain governance. The Hyper Foundation oversees community governance and ecosystem growth, ensuring decentralization and alignment of incentives across traders, builders, and validators. Hyperliquid’s investors include Tioga Capital Partners, Collab+Currency, Infinite Capital (San Juan), Optimista Capital, and RockawayX, all holding minority venture capital positions.

Hyperliquid Outcome Markets

Supply-side fees

Supply-side fees

Chain breakdown