# Fluid Vault Supply-side fees Methodology

## 1. Overview

Supply-side fees for Fluid Vault measure the portion of interest income that is distributed to liquidity providers. This metric reflects the earnings generated by service providers after protocol-retained revenue is deducted from the total interest paid by borrowers. Supply-side fees serve as the primary incentive for users to supply assets to Fluid Vault, facilitating the decentralized lending and borrowing operations of the protocol.

## 2. Data sources

- **Blockchain events**: `LogOperate` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts, `LogRebalance` events from `FluidVaultT1` and `FluidVaultT2` contracts, and `getEntireData` state snapshots from Fluid Vault contracts, covering Ethereum, Arbitrum, Base, Polygon, and 2 other chains
- **External data**: End-of-day price feeds for supplied and borrowed assets

## 3. Step-by-step calculation

### Component A: Total interest accrual tracking

- **Purpose**: Calculate the total interest paid by borrowers (Fees) as the base for supply-side distributions
- **Logic**: Daily borrow balances for each Fluid Vault are retrieved from `getEntireData` state snapshots. Total interest is determined by calculating the daily change in these borrow balances, which is then adjusted by subtracting any user-initiated borrowing or repayment activity captured in `LogOperate` events. This ensures that only organically accrued interest is counted toward the total fee amount.
- **Key fields**: `total_borrow_vault` (from snapshots), `borrow_amount` (from operations), and `token_address`

### Component B: Protocol revenue deduction

- **Purpose**: Determine the portion of interest income retained by the protocol
- **Logic**: Protocol revenue is calculated by combining uncollected and collected revenue components. Uncollected revenue is derived from the spread between the total liquidity supply and the Fluid Vault-specific supply, as well as the spread between Fluid Vault-specific borrows and total liquidity borrows, tracked via `getEntireData` snapshots. Collected revenue is identified through `LogRebalance` events, which signify the transfer of accumulated fees to protocol-controlled accounts.
- **Key fields**: `total_supply_liquidity`, `total_supply_vault`, `total_borrow_vault`, `total_borrow_liquidity`, `collateral_amount`, and `debt_amount`

### Component C: Supply-side fee determination

- **Purpose**: Calculate the net value distributed to supply-side participants
- **Logic**: Supply-side fees are calculated by subtracting the identified protocol revenue from the total accrued interest (Fees). For specific integrated products such as Jupiter Lend, a fixed 50% allocation is applied to the total fees to represent the supply-side share. The final value represents the aggregate earnings of the liquidity providers across all supported vaults.

### Component D: USD conversion and normalization

- **Purpose**: Normalize fee values for cross-asset and cross-chain comparison
- **Logic**: Raw asset amounts are normalized by their respective decimal precision. These values are then converted to USD using end-of-day price feeds. Aggregation is performed at a daily granularity following UTC day boundaries.
- **Key fields**: `timestamp`, `token_address`, `price_usd`, and `decimals`

*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 Vault

Supply-side fees

Supply-side fees

Chain breakdown