# Fluid Vault Fees Methodology

## 1. Overview

Fees for Fluid Vault are measured as the total interest accrued by borrowers on their outstanding debt positions. These fees represent the economic value generated by the protocol's lending activity and are primarily used to compensate liquidity providers. Interest is isolated by analyzing the daily change in total debt balances across all vaults, adjusted for user-initiated borrow and repayment actions captured from on-chain instructions.

## 2. Data sources

- **Blockchain events**: `LogOperate` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts, and Fluid Vault state data parsed from Fluid Vault contracts, covering Ethereum, Arbitrum, Base, BSC, and 2 other chains
- **External data**: End-of-day price feeds for borrowed assets and asset metadata for decimal precision

## 3. Step-by-step calculation

### Component A: Debt balance tracking

- **Purpose**: To determine the total outstanding debt within each Fluid Vault at specific points in time.
- **Logic**: Global Fluid Vault state data is parsed to extract the `total_borrow_vault` field for every active Fluid Vault. Daily snapshots are generated to establish the opening and closing debt balances for each Fluid Vault-asset pair. These balances serve as the baseline for identifying total debt growth.

### Component B: User activity extraction

- **Purpose**: To identify and aggregate all manual changes to debt balances caused by user interactions.
- **Logic**: `LogOperate` events are parsed from `FluidLiquidity` and `FluidLiquidityProxy` contracts to identify user-initiated borrow and repayment amounts. These actions are aggregated by day, Fluid Vault, and asset. Instructions directed to the reserve contract are excluded to ensure only market-facing debt changes are considered.

### Component C: Interest accrual isolation

- **Purpose**: To isolate the interest component from the total change in debt.
- **Logic**: Fees are calculated by taking the total change in the debt balance (closing balance minus opening balance) and subtracting the net user-initiated activity (borrows minus repayments) for that same period. In instances where the result is negative due to rounding or contract-specific logic, the value is normalized to zero.

### Component D: Normalization and USD conversion

- **Purpose**: To standardize fee values for cross-asset and cross-chain comparison.
- **Logic**: Fee amounts are normalized using the decimal precision retrieved from Fluid Vault constants. The resulting values are multiplied by end-of-day price feeds for the respective borrowed assets to determine the USD value. All values are aggregated to a daily granularity using UTC day boundaries.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

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 Vault

Fees

Fees

Chain breakdown