# Jupiter Lend Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of interest-based fees generated by Jupiter Lend that is allocated to Fluid, the underlying infrastructure provider. Jupiter Lend operates as a lending protocol on Solana using Fluid's liquidity layer, where a portion of the interest paid by borrowers is designated as protocol fees. These fees are split according to a revenue-sharing agreement where 50% of the protocol's fee collection is distributed to Fluid as compensation for providing the lending infrastructure.

## 2. Data sources

- **Blockchain instructions**: `Operate`, `UpdateTokenConfig`, `UpdateRateDataV1`, and `UpdateRateDataV2` instructions from the `Liquidity` program on Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Interest accrual tracking

- **Purpose**: To calculate the total interest paid by borrowers, which serves as the basis for fee generation.
- **Logic**: `Operate` instructions are parsed to track the real-time borrow and supply balances for each asset. Utilization rates are calculated by dividing active loans by total liquidity. Interest rate curves are established using `UpdateRateDataV1` and `UpdateRateDataV2` instructions, which define specific kinks and interest rate parameters at various utilization levels. Compound interest is then accrued between ogni transaction based on the time elapsed and the prevailing interest rate.
- **Key fields**: `borrow_amount`, `supply_amount`, `mint` (token address), `rate_at_utilization_max`, `rate_at_utilization_zero`.

### Component B: Protocol fee calculation

- **Purpose**: To identify the total gross fees captured by the protocol from accrued interest.
- **Logic**: Protocol fee rates are extracted from `UpdateTokenConfig` instructions. These rates represent the percentage of accrued interest that the protocol retains rather than distributing to lenders. Total fees are calculated by multiplying the interest accrued during a specific period by the applicable protocol fee rate.
- **Key fields**: `fee` (protocol fee rate).

### Component C: Supply-side fee allocation

- **Purpose**: To determine the specific portion of fees allocated to Fluid as a service provider.
- **Logic**: A 50% allocation factor is applied to the total gross protocol fees identified in Component B. This reflects the revenue-sharing agreement where half of the protocol's earnings are distributed to the infrastructure provider (Fluid) and the remaining half is retained as protocol revenue.
- **Key fields**: `fees` (gross protocol fees).

### Component D: Aggregation and USD conversion

- **Purpose**: To normalize financial values for cross-asset comparison and reporting.
- **Logic**: All fee amounts are normalized by the decimal precision of the underlying assets. These values are then converted to USD using end-of-day price feeds. Daily totals are aggregated by summing the USD values within UTC day boundaries.
- **Key fields**: `timestamp`, `token_address`, `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.

Jupiter Lend

Supply-side fees

Supply-side fees

Chain breakdown