Liquidity providers deposit funds into IPOR Protocol and receive trading fees and asset management yield (supply-side fees).

IPOR Protocol is a non-custodial exchange for interest rate swaps built on Ethereum. IPOR Protocol was founded by Darren Camas & Dimitar Dinev, and was launched in August 2022.

IPOR tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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IPOR Protocol

# IPOR Protocol Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the total fees earned by liquidity providers in the IPOR Protocol ecosystem. This metric captures revenue flowing to liquidity providers from two primary sources: trading fees from interest rate swap operations and yields from asset management activities where IPOR deploys idle liquidity pool funds to external yield-generating protocols like Aave and Compound. The calculation combines data from both IPOR Protocol V1 and V2 deployments on Ethereum.

## 2. Data sources

The calculation relies on several categories of blockchain and external data:

- **IPOR V1 contract events**: Parsed `Redeem` events from Joseph contracts (JosephDai, JosephUsdc, JosephUsdt) and `OpenSwap` events from Milton contracts across DAI, USDC, and USDT markets
- **IPOR V2 contract events**: Parsed `OpenSwap`, `SwapUnwind`, `Redeem`, and `RedeemStEth` events from IporProtocolRouter and IporProtocolRouterV2 contracts
- **Asset management events**: Parsed `Deposit` and `Withdraw` events from Stanley contracts tracking IPOR's deployment of funds to external yield protocols
- **Token metadata**: Token symbols, addresses, and decimal configurations for supported assets (DAI, USDC, USDT, stETH)
- **Market dimension data**: Mapping between AMM treasury contract addresses and underlying token addresses for V2 operations
- **End-of-day price feeds**: USD conversion rates for all supported tokens

## 3. Step-by-step calculation

### Component A: V1 trading fees
- **Purpose**: Captures fees from interest rate swap trading on IPOR Protocol V1
- **Logic**: Extracts fees from two event types. For position closures, processes `Redeem` events from Joseph contracts extracting the `redeemFee` field which represents fees paid by traders when closing swap positions. For position openings, processes `OpenSwap` events from Milton contracts extracting the `openingFeeLPAmount` field which represents the portion of opening fees allocated to liquidity providers. All amounts are converted from 18-decimal blockchain format by dividing by 10^18. Events are filtered to distinct occurrences and classified under "Interest rate swaps" business line with "derivatives" market sector and "perpetual" business segment
- **Key fields**: `redeemFee` (closing fees), `openingFeeLPAmount` (opening fees to LPs), `asset` (token address), standard blockchain event metadata

### Component B: V2 trading fees  
- **Purpose**: Captures fees from interest rate swap trading on IPOR Protocol V2 with enhanced fee structures
- **Logic**: Processes multiple event types with varying fee extraction logic. For `OpenSwap` events from both IporProtocolRouter and IporProtocolRouterV2, extracts `openingFeeLPAmount` from the amounts structure. For `SwapUnwind` events, extracts `unwindFeeLPAmount` representing fees for unwinding positions. For standard `Redeem` events, joins with the markets dimension table to map AMM treasury addresses to underlying token addresses, then extracts `redeemFee`. For stETH-specific redemptions via `RedeemStEth` events, calculates fees as the difference between `amountStEth` and `redeemedAmountStEth`, representing the fee retained by the protocol. All amounts undergo 18-decimal conversion
- **Key fields**: `openingFeeLPAmount` (opening fees), `unwindFeeLPAmount` (unwind fees), `redeemFee` (redemption fees), `amountStEth` and `redeemedAmountStEth` (stETH fee calculation), `ammTreasury` (market mapping)

### Component C: Asset management yields
- **Purpose**: Captures yield generated from deploying liquidity pool funds to external protocols like Aave and Compound
- **Logic**: Tracks exchange rate changes in IPOR's asset management contracts to estimate yield generation. First, processes both `Deposit` and `Withdraw` events from Stanley contracts, extracting exchange rates and deposit/withdrawal amounts. Applies filtering to exclude extreme exchange rates outside the range of 1.5e17 to 1.5e18 to remove erroneous data. Uses window functions with LAG to track exchange rate changes over time for each token. Calculates cumulative deposit values using running sums. Estimates yield as the product of ongoing deposit value and exchange rate increases, only including periods where exchange rates increased (indicating yield generation). Withdrawal amounts are treated as negative to track net deployed capital
- **Key fields**: `exchangeRate` (yield rate indicator), `amount` (deposit/withdrawal size), calculated `value` (ongoing deposits), yield calculated as `value * (exchange_rate - last_exchange_rate)`

### Final aggregation
- **Combining components**: All three components are combined using UNION ALL operations, creating a unified dataset with consistent field structures including timestamp, chain, business line classifications, token addresses, and fee amounts
- **Currency conversion**: Applies USD conversion using end-of-day price feeds matched to transaction dates, with automatic decimal correction based on token specifications
- **Time aggregation**: All data is aggregated to daily grain by truncating block timestamps to day boundaries, ensuring consistent daily reporting periods
- **Final calculation**: The metric value represents the sum of all supply-side fees in USD terms for each day, token, and business line combination. Missing days are filled with zero values to maintain continuous time series. The result shows total daily fees flowing to liquidity providers across both trading operations and asset management yield generation activities

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

Portion of fees distributed to service providers or supply-side participants.

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Supply-side fees

Supply-side fees

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