# Fluid DEX Supply-side fees Methodology

## 1. Overview

Supply-side fees for Fluid DEX is defined as the portion of trading fees and arbitrage profits distributed to liquidity providers. Earnings generated by service providers who facilitate token swaps and maintain liquidity within the Fluid DEX, Fluid DEX Lite, and Venus Flux ecosystems are represented by this metric. Total fee generation from swaps and arbitrage operations is identified, from which the protocol's retained revenue is subtracted.

## 2. Data sources

- **Blockchain events**: `Swap` events from `FluidDex` and `FluidDexT1` contracts, `LogSwap` events from `FluidDexLite` contracts, and `LogOperate` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts, covering Ethereum, Arbitrum, Base, Polygon, and 2 other chains
- **External data**: End-of-day price feeds for assets involved in trading pairs

## 3. Step-by-step calculation

### Component A: Fluid DEX and Fluid DEX Lite trading fee extraction

- **Purpose**: Gross fees generated from user swap activities across all decentralized exchange products are captured.
- **Logic**: `Swap` events from `FluidDex` and `FluidDexT1` contracts and `LogSwap` events from `FluidDexLite` contracts are parsed. For `LogSwap` events, a specialized decoding function is applied to the swap data using bitwise masks to extract the pair identifier, swap direction, and adjusted swap amounts. Two-leg token amounts are calculated for each transaction based on the swap direction and normalized by decimal precision. Gross trading fees are calculated by multiplying the input token amount (determined by the swap direction) by the trade fee rate.
- **Key fields**: `block_timestamp` (timing), `amount_in` (input amount), `amount_out` (output amount), `swap_0_to_1` (swap direction), `fee_tier` (trade fee rate)

### Component B: Fluid DEX arbitrage fee identification

- **Purpose**: Additional fees generated through specific arbitrage operations performed within the liquidity layer are calculated.
- **Logic**: `LogOperate` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts are filtered for operations associated with identified Fluid DEX accounts. Arbitrage fees are identified in instances where both supply and borrow amounts are non-zero and unequal within the same instruction. The absolute difference between the supply and borrow amounts is recorded as an arbitrage-driven fee.
- **Key fields**: `supply_amount` (supplied asset quantity), `borrow_amount` (borrowed asset quantity), `arbitrage_fee` (calculated fee)

### Component C: Fluid DEX protocol revenue tracking

- **Purpose**: The protocol's share of trading fees to be subtracted from the supply-side calculation is determined.
- **Logic**: Protocol revenue is calculated by applying a pool-specific revenue cut percentage, retrieved from daily pool configuration state data, to the gross trading fees.
- **Key fields**: `revenue_cut` (protocol fee share percentage), `revenue` (calculated protocol revenue)

### Component D: USD conversion and final aggregation

- **Purpose**: The final supply-side share is normalized and converted to a standard currency for reporting.
- **Logic**: Supply-side fees are calculated by summing trading fees and arbitrage fees, then subtracting the protocol revenue. All fee amounts are normalized by decimal precision. Final values are multiplied by end-of-day price feeds to determine the USD equivalent. Data is aggregated with daily granularity using UTC day boundaries.
- **Key fields**: `fees` (gross fees), `revenue` (protocol revenue), `price_usd` (asset price)

*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

Exchanges (DEX)

Fluid acts as a lending, vault, and DEX platform for seamless DeFi interaction.

Fluid is a non-custodial lending, vaults, and DEX protocol built by Instadapp. Instadapp was founded by Samyak Jain & Sowmay Jain and launched in 2018.

FLUID tokenholders own and govern the protocol. They currently earn a cut of the fees generated through Fluid lending, vault and DEX services. Instadapp's investors include Coinbase Ventures, Pantera Capital, Robot Ventures, etc.

Fluid DEX

Supply-side fees

Supply-side fees

Chain breakdown