# Venus Flux Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of total fees generated by Venus Flux that is distributed to service providers, primarily liquidity providers. Venus Flux operates as the BNB Chain deployment of the Fluid protocol, encompassing decentralized exchange (Fluid DEX) and automated Fluid Vault functionalities. The metric is calculated by aggregating all protocol-generated fees—including swap fees, arbitrage fees, and interest income—and subtracting the protocol revenue share retained by the treasury.

## 2. Data sources

- **Blockchain events**: `Swap` events from `FluidFluid DEX` contracts, and `LogOperate`, `LogCollectRevenue`, and `LogCollectRevenue` events from `FluidLiquidity` contracts, covering BNB Chain
- **External data**: End-of-day price feeds for assets traded and deposited within the protocol

## 3. Step-by-step calculation

### Component A: Fluid DEX swap fee calculation

- **Purpose**: To calculate the total fees generated from trading activity on the Venus Flux Fluid DEX.
- **Logic**: Trading volume is extracted from `Swap` events emitted by `FluidFluid DEX` contracts. This volume is paired with pool-specific metadata to identify the applicable fee tier. Fees are calculated by multiplying the trading volume of the input asset by the specific fee tier of the trading pair.
- **Key fields**: `amount_in`, `fee_tier`, `token_address`

### Component B: Arbitrage fee extraction

- **Purpose**: To capture fees generated through internal arbitrage mechanisms during liquidity operations.
- **Logic**: `LogOperate` events from `FluidLiquidity` contracts are parsed for all Fluid DEX-related accounts. An arbitrage fee is identified when the `supply_amount` and `borrow_amount` within a single operation are non-zero and unequal. The fee is calculated as the absolute difference between these two values for the specific asset involved in the operation.
- **Key fields**: `supply_amount`, `borrow_amount`, `token_address`

### Component C: Fluid Vault interest fee calculation

- **Purpose**: To determine the total interest paid by borrowers within Venus Flux vaults.
- **Logic**: Total borrow balances are tracked through daily snapshots of Fluid Vault states. The daily fee amount is calculated by taking the change in the total borrow balance between consecutive days and subtracting the net impact of manual borrow and repayment actions identified in `LogOperate` events. This ensures that only accrued interest is captured as a fee.
- **Key fields**: `total_borrow_vault`, `borrow_amount`

### Component D: Protocol revenue deduction

- **Purpose**: To isolate the supply-side share by removing the protocol's retained revenue.
- **Logic**: Protocol revenue is determined through two primary methods. First, a `revenue_cut` percentage is applied to the Fluid DEX swap fees based on pool configuration parameters. Second, direct revenue collections are identified via `LogCollectRevenue` events from the liquidity layer. These protocol revenue values are subtracted from the sum of components A, B, and C to arrive at the final supply-side fee value.
- **Key fields**: `revenue_cut`, `amount` (collected revenue)

### Component E: Normalization and USD conversion

- **Purpose**: To convert all fee components into a standardized USD value for reporting.
- **Logic**: Raw on-chain amounts are normalized by the decimal precision of the respective assets. These values are then multiplied by the end-of-day price feeds. All data is aggregated at a daily granularity following UTC boundaries.
- **Key fields**: `price_usd`, `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.

Venus Flux

Supply-side fees

Supply-side fees

Chain breakdown