# Fluid Lite Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of yield generated by Fluid Lite managed vaults that is distributed to depositors. Fluid Lite operates as an automated asset management layer that optimizes yield across various decentralized finance protocols. While a portion of the generated yield is collected by the protocol as a performance-based revenue fee, the remaining value represents the interest and rewards earned by the supply-side participants. This metric reflects the net organic earnings accruing to users who provide liquidity to the vaults.

## 2. Data sources

- **Blockchain events**: `collectRevenueLog`, `LogCollectRevenue`, `updateFeesLog`, and `LogUpdateFees` events from `iETH`, `iDAI`, `iUSDC`, and `iWBTC` contracts, plus on-chain state snapshots of unclaimed revenue for managed vaults, covering Ethereum
- **External data**: End-of-day price feeds for the underlying assets (ETH, DAI, USDC, WBTC)

## 3. Step-by-step calculation

### Component A: Yield tracking and gross fee derivation

- **Purpose**: To calculate the total yield (gross fees) generated by the managed assets before any protocol deductions.
- **Logic**: Realized yield is extracted from `collectRevenueLog` and `LogCollectRevenue` events. Unrealized yield is calculated by tracking the daily change in unclaimed revenue amounts through on-chain state snapshots. Because the protocol identifies performance fees as revenue, the total gross yield is derived by dividing the collected and uncollected revenue amounts by the performance fee rate applicable at the time of the transaction.
- **Key fields**: `amount` (collected/uncollected revenue), `account_address` (Fluid Vault identification), `token_address` (asset identification).

### Component B: Performance fee rate monitoring

- **Purpose**: To determine the percentage of yield allocated to the protocol versus the depositors.
- **Logic**: Fee rates are retrieved from `updateFeesLog` and `LogUpdateFees` events. These rates define the performance fee percentage taken by the protocol from the gross yield. A historical mapping of these rates is maintained to ensure that the correct percentage is applied to yield generated during specific blocks or time intervals.
- **Key fields**: `revenueFee_` and `revenueFeePercentage` (fee rates), `block_timestamp` (validity period).

### Component C: Supply-side fee calculation

- **Purpose**: To isolate the net yield distributed to depositors.
- **Logic**: Supply-side fees are calculated as the difference between the total gross yield (Component A) and the protocol revenue. This represents the interest and rewards that remain within the Fluid Vault for the benefit of the depositors. Amounts are normalized by the decimal precision of the respective underlying assets and converted to USD using end-of-day price feeds.
- **Key fields**: `fee_rate` (protocol allocation), `amount` (yield value).

*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 Lite

Supply-side fees

Supply-side fees

Chain breakdown