# Fluid Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of total fees generated by Fluid that is distributed to service providers, primarily liquidity providers. The cost of capital and infrastructure maintenance for the protocol is represented by this metric. For Fluid DEX, Fluid DEX Lite, Fluid Vault, and Venus Flux, supply-side fees are calculated as the residual value after protocol revenue is subtracted from total fees. In the case of Jupiter Lend, which utilizes Fluid infrastructure on Solana, a specific revenue-sharing agreement is applied where a fixed percentage of total fees is allocated to the supply side.

## 2. Data sources

- **Blockchain events**: `LogOperate` and `LogCollectRevenue` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts, `Swap` events from `FluidDex` and `FluidDexT1` contracts, `LogSwap` events from `FluidDexLite` contracts, and `LogRebalance` events from `FluidVaultT1` and `FluidVaultT2` contracts, plus `Operate`, `UpdateTokenConfig`, `UpdateRateDataV1`, and `UpdateRateDataV2` instructions from the `Liquidity` program, covering Ethereum, Arbitrum, Base, Polygon, Solana, and 2 other chains
- **External data**: End-of-day price feeds for assets and asset metadata

## 3. Step-by-step calculation

### Component A: Jupiter Lend interest accrual and allocation

- **Purpose**: Calculates the service provider's share of interest generated on Solana.
- **Logic**: Borrow and supply operations are identified through `Operate` instructions from the `Liquidity` program. Running asset balances are maintained and joined with interest rate parameters from `UpdateRateDataV1` and `UpdateRateDataV2` instructions. Compound interest is accrued based on utilization rates and time elapsed between operations. Total fees are determined by applying the fee rates found in `UpdateTokenConfig` instructions to the accrued interest. Finally, a 50% allocation is applied to these fees to determine the supply-side portion.
- **Key fields**: `borrow_amount`, `supply_amount`, `fee`, `rate_at_utilization_kink`, `rate_at_utilization_max`.

### Component B: Fluid DEX and Fluid DEX Lite trading fee calculation

- **Purpose**: Captures fees generated from automated market making activities.
- **Logic**: Trading volumes are extracted from `Swap` events in `FluidDex` and `FluidDexT1` contracts, and `LogSwap` events in `FluidDexLite` contracts. For each trade, the input asset amount is multiplied by the trade fee rate. Additionally, arbitrage fees are included by parsing `LogOperate` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts, where the absolute difference between supply and borrow amounts for a single transaction is treated as a fee.
- **Key fields**: `amount_0`, `amount_1`, `trade_fee_rate`, `supply_amount`, `borrow_amount`.

### Component C: Fluid Vault and Fluid Lite borrowing fees

- **Purpose**: Determines the interest-based fees generated by lending and automated strategy products.
- **Logic**: For Fluid Vault, daily borrowing fees are calculated by tracking changes in total borrow balances between snapshots, adjusted for user-initiated borrow or repayment actions captured in `LogOperate` events. For Fluid Lite, fees are derived by dividing the performance-based revenue by the applicable fee rate for each specific Fluid Vault strategy.
- **Key fields**: `total_borrow_vault`, `borrow_amount`, `fee_rate`.

### Component D: Protocol revenue subtraction and final aggregation

- **Purpose**: Deducts the protocol's retained portion to isolate the supply-side share.
- **Logic**: Protocol revenue is captured through `LogCollectRevenue` events or calculated from changes in uncollected revenue snapshots. This revenue is subtracted from the total fees calculated in Components B and C for all products except Jupiter Lend. All values are normalized by decimal precision and converted to USD using end-of-day price feeds. The final metric is aggregated by product and chain on a daily basis.
- **Key fields**: `revenue`, `fees`, `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

Lending

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

Supply-side fees

Supply-side fees

Chain breakdown