# Hyperliquid Perps Supply-side fees Methodology

## 1. Overview

The share of transaction fees generated by Hyperliquid Perps that is distributed to external service providers and ecosystem participants rather than being retained by the protocol is measured by supply-side fees. Compensation distributed to frontend builders via builder-code tips and to asset deployers via HIP-3 deployer fee allocations is captured by this metric. The economic incentives provided to external developers and partners who drive trading volume and deploy custom markets on Hyperliquid Perps are quantified through these tracked distributions.

## 2. Data sources

- **Blockchain events**: Fill events from HyperCore node fills, covering HyperCore
- **External data**: End-of-day price feeds for assets

## 3. Step-by-step calculation

### Component A: Hyperliquid Perps fill event filtering and fee extraction

- **Purpose**: Identify Hyperliquid Perps transactions and extract fee components from fill events.
- **Logic**: Fill events are parsed from HyperCore node fills. Transactions are filtered to isolate Hyperliquid Perps by excluding assets associated with Hyperliquid Spot (identified by prefixes like `@` or containing `/`) and Hyperliquid Outcome Markets (identified by the `#` prefix). For each qualifying fill event, the total fee, builder fee, and deployer fee are extracted. For historical events where builder and deployer fees are not explicitly emitted, these values are initialized as null.
- **Key fields**: `fee`, `builder_fee`, `deployer_fee`, `coin`, `fee_token`

### Component B: Hyperliquid Perps builder and deployer fee allocation

- **Purpose**: Calculate the specific supply-side fee allocations for frontend builders and market deployers.
- **Logic**: Builder fees are resolved by coalescing null values to zero, representing direct tips allocated to frontend builders. Deployer fees for HIP-3 markets (identified by a colon in the asset name, such as `<deployer>:<ticker>`) are resolved using on-chain emitted deployer fees when available. For historical fills predating on-chain emission, the deployer fee is estimated by multiplying the total fee by a deployer fee multiplier derived from the deployer fee scale, with a default multiplier of 0.5 being applied if the deployer is unlisted. For native markets without a deployer prefix, the deployer fee is set to zero.
- **Key fields**: `builder_fee`, `deployer_fee`, `deployer_fee_multiplier`

### Component C: Hyperliquid Perps USD conversion and daily aggregation

- **Purpose**: Normalize fee components to USD and aggregate them daily.
- **Logic**: Fee components are converted to USD using a conversion factor of one for USD-denominated stablecoins, or the end-of-day asset price for other fee assets. The daily sum of total fees, builder fees, and deployer fees is calculated. Supply-side fees are then computed by subtracting protocol revenue (calculated as total fees minus builder and deployer fees) from total fees, with the final supply-side fee metric being defined as the sum of builder fees and deployer fees.
- **Key fields**: `fees`, `builder_fees`, `deployer_fees`, `eod_price_usd`

*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

Derivative exchanges

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 Perps

Supply-side fees

Supply-side fees

Chain breakdown