# Venus Flux Fees Methodology

## 1. Overview

Fees measures the total value paid by users to interact with Venus Flux on BNB Chain. This metric captures the economic value generated across the product's decentralized exchange and Fluid Vault infrastructure. It includes liquidity provider fees from trading activity, arbitrage fees captured by the liquidity layer, and interest paid by borrowers within the automated vaults. All fee components are denominated in the underlying assets and converted to USD to provide a comprehensive view of the protocol's economic throughput.

## 2. Data sources

- **Blockchain events**: `Swap` events from `FluidFluid DEX` and `FluidDexT1` contracts, `LogOperate` events from `FluidLiquidity` and `FluidLiquidityProxy` contracts, and account state data from Fluid Vault implementations, covering BNB Chain
- **External data**: End-of-day price feeds for assets

## 3. Step-by-step calculation

### Component A: Fluid DEX trading fee extraction

- **Purpose**: Captures fees generated from user swap activity within the Venus Flux Fluid DEX.
- **Logic**: `Swap` events are parsed from `FluidFluid DEX` and `FluidDexT1` contracts. Trading volume is calculated by extracting the amount field for the asset provided by the user. This volume is then multiplied by the specific fee tier assigned to the trading pair, which is retrieved from the protocol’s dimension tables. Trading pairs are identified and filtered to ensure only operations associated with Venus Flux accounts are included.

### Component B: Arbitrage fee calculation

- **Purpose**: Captures fees generated from arbitrage discrepancies captured during liquidity operations.
- **Logic**: `LogOperate` events are parsed from `FluidLiquidity` and `FluidLiquidityProxy` contracts. For transactions associated with Venus Flux Fluid DEX addresses, the absolute difference between the supply amount and the borrow amount is calculated when both actions occur simultaneously. This discrepancy represents the arbitrage fee captured by the protocol's liquidity layer. These fees are aggregated for both assets within a trading pair.

### Component C: Fluid Vault borrow fee calculation

- **Purpose**: Measures the interest accrued by borrowers within the Venus Flux vaults.
- **Logic**: Total borrow balances for vaults are tracked using account state data across multiple implementation versions. The daily fee is determined by calculating the change in the total borrow balance between the current and previous day. To isolate interest accrual from manual capital flows, any borrowing or repayment activity identified in `LogOperate` events is subtracted from this daily delta. Any resulting negative values are filtered to zero to ensure only positive interest accrual is represented.

### Component D: USD conversion and aggregation

- **Purpose**: Normalizes all fee components into a common currency for reporting.
- **Logic**: Fee amounts from all components are normalized by their respective asset decimal precision. These values are then multiplied by end-of-day price feeds for each specific asset. The final metric is aggregated at a daily granularity using UTC day boundaries, combining trading fees, arbitrage fees, and borrow interest.

*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.

Venus Flux

Fees

Fees

Chain breakdown