# Fluid DEX Lite Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of trading fees generated by Fluid DEX Lite that is distributed to liquidity providers. This metric represents the primary compensation for users who provide capital to the protocol's liquidity pools. By isolating the supply-side share from total fees, the metric provides insight into the organic yield available to service providers within the Fluid DEX Lite ecosystem.

## 2. Data sources

- **Blockchain events**: `LogSwap` events from `FluidDexLite` contracts, covering Ethereum
- **External data**: End-of-day price feeds for the traded assets

## 3. Step-by-step calculation

### Component A: Trading volume extraction

- **Purpose**: Identify and quantify all trade activity within Fluid DEX Lite pools.
- **Logic**: Trade data is parsed from `LogSwap` events emitted by `FluidDexLite` contracts. Input and output amounts are extracted from the encoded swap data and mapped to the respective assets in the trading pair. These amounts are then normalized by decimal precision.

### Component B: Total fee calculation

- **Purpose**: Determine the gross fees generated by trading activity.
- **Logic**: Total fees are calculated by applying the pool-specific `fee_tier` to the trading volume. Pool metadata, including the applicable fee tier and token addresses, is joined with the trade events based on the unique pool identifier and block timing.

### Component C: Protocol revenue extraction

- **Purpose**: Identify the portion of total fees retained by the protocol treasury.
- **Logic**: Protocol revenue is determined by applying a `revenue_cut` percentage to the total fees. The `revenue_cut` value is retrieved from the pool configuration state at the time of the trade. This component represents the value captured by the protocol rather than the supply-side participants.

### Component D: Supply-side fee allocation and USD conversion

- **Purpose**: Calculate the final share for liquidity providers and normalize values to USD.
- **Logic**: Supply-side fees are calculated as the difference between total fees and protocol revenue. All values are converted to USD using end-of-day price feeds for the involved assets. Data is aggregated at a daily granularity following UTC day boundaries.

*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 Lite

Supply-side fees

Supply-side fees

Chain breakdown