# Jupiter Lend Revenue Methodology

## 1. Overview

Revenue measures the portion of interest income generated by Jupiter Lend that is retained by the protocol. While the majority of interest paid by borrowers is distributed to liquidity providers as supply-side fees, a specific protocol take rate is applied to the accrued interest to determine the protocol's earnings. This metric provides insight into the monetization of the lending product on Solana.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Balance and rate parameter tracking

- **Purpose**: Maintain a chronological record of lending activity and interest rate configurations for each asset.
- **Logic**: Borrow and supply amounts are extracted from `Operate` instructions to maintain running balances. Configuration parameters, including utilization kinks and various interest rate tiers, are parsed from `UpdateRateDataV1` and `UpdateRateDataV2` instructions. These values are joined temporally to ensure each lending operation is associated with the correct interest rate model.
- **Key fields**: `borrow_amount`, `supply_amount`, `mint`, `kink`, `rate_at_utilization_max`

### Component B: Interest accrual calculation

- **Purpose**: Quantify the total interest generated by active loans.
- **Logic**: For every asset, interest is accrued between consecutive instructions based on the time elapsed and the calculated interest rate. The interest rate is derived from the utilization ratio (total borrows divided by total supply) and the active rate curve (V1 or V2). Compound interest is calculated for each period using a daily-equivalent rate derived from the basis point configurations.
- **Key fields**: `interest_accrued_this_period`, `utilization_before`, `rate_bps`

### Component C: Protocol take rate identification

- **Purpose**: Determine the percentage of interest income allocated to the protocol.
- **Logic**: Protocol fee rates are identified from `UpdateTokenConfig` instructions. These rates represent the "take rate" applied to the total interest paid by borrowers. The most recent fee configuration for each asset is joined to the interest accrual data.
- **Key fields**: `fee`

### Component D: Revenue aggregation and USD conversion

- **Purpose**: Calculate the final revenue value in USD.
- **Logic**: Revenue is calculated as the product of the interest accrued during a period and the applicable protocol fee rate. The resulting values are aggregated by day and asset. Amounts are normalized by decimal precision and multiplied by end-of-day price feeds to determine the USD value.
- **Key fields**: `revenue`, `price_usd`, `decimals`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

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.
