# Jupiter Lend Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Jupiter Lend to operate its lending platform. This metric specifically captures the infrastructure costs paid to Fluid, the underlying lending infrastructure provider for the protocol. Jupiter Lend is operated under a revenue-sharing agreement where 50% of all protocol revenue is allocated to Fluid as an operating expense.

## 2. Data sources

- **Blockchain events**: `Operate`, `UpdateTokenConfig`, `UpdateRateDataV1`, and `UpdateRateDataV2` instructions from the `Liquidity` program, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Jupiter Lend interest accrual tracking

- **Purpose**: Calculate the total interest generated by active loans as the basis for expense calculations
- **Logic**: Borrow and supply amounts are extracted from `Operate` instructions from the `Liquidity` program. Running balances are maintained per asset account to track total active loans and available liquidity. Interest is accrued between instruction timestamps by applying utilization-based interest rate curves. Interest rate parameters are parsed from `UpdateRateDataV1` and `UpdateRateDataV2` instructions from the `Liquidity` program. Utilization is calculated as the ratio of the active loan balance to the total supply balance.
- **Key fields**: `borrow_amount`, `supply_amount`, `mint`

### Component B: Protocol revenue determination

- **Purpose**: Identify the portion of accrued interest retained by the protocol
- **Logic**: Protocol fee rates are retrieved from `UpdateTokenConfig` instructions from the `Liquidity` program. Revenue is calculated by multiplying the interest accrued during a specific period by the applicable fee rate for that asset. The resulting amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `fee`, `token`

### Component C: Fluid revenue-share allocation

- **Purpose**: Calculate the final expense amount based on the revenue-sharing agreement
- **Logic**: Expenses are derived by applying a 50% allocation factor to the calculated protocol revenue. This represents the contractual payment made to Fluid for providing the lending infrastructure. The final values are aggregated by day using UTC boundaries.
- **Key fields**: `revenue`, `product_id`

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

Total project operating and incentive expenses.

Expenses

Lending

Jupiter aggregates liquidity from multiple non-custodial exchanges. Integrators set custom fees. Liquidity providers deposits funds into the perpetual exchange. Both receive fees from traders (supply-side fees).

Jupiter is a non-custodial DEX aggregator and exchange for perpetual contracts built on Solana. Jupiter was founded by an pseudonymous founder meow and launched in 2021.

JUP token holders own and govern the protocol. They currently take a cut of the total perpetual and integrator trading fees paid by traders (revenue). Jupiter's investors include White Hilt Capital, etc.
