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.


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Jupiter

# Jupiter Cost of revenue Methodology

## 1. Overview

Cost of revenue measures the expenses incurred by Jupiter when outsourcing core infrastructure to third-party service providers. For Jupiter Lend, this metric represents the portion of interest income shared with Fluid, the underlying lending infrastructure provider. A 50% revenue-sharing agreement is applied to all protocol revenue generated through Jupiter Lend to account for these infrastructure costs.

## 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: Jupiter Lend interest accrual tracking

- **Purpose**: Calculate the total interest generated by active loans as the basis for revenue and cost calculations.
- **Logic**: Borrow and supply actions are identified through `Operate` instructions from the `Liquidity` program. Running balances for each asset are maintained by aggregating these change events. Interest rate parameters, including utilization kinks and rate caps, are extracted from `UpdateRateDataV1` and `UpdateRateDataV2` instructions. Compound interest is accrued for the duration between instructions by applying the calculated interest rate to the active borrow balance.
- **Key fields**: `borrow_amount`, `supply_amount`, `mint`, `kink`, `rate_at_utilization_max`

### Component B: Jupiter Lend revenue calculation

- **Purpose**: Determine the protocol's share of accrued interest before expenses.
- **Logic**: Protocol fee rates are parsed from `UpdateTokenConfig` instructions from the `Liquidity` program. These rates are joined temporally to the interest accrual data. Protocol revenue is calculated by multiplying the interest accrued during a specific period by the applicable protocol fee rate. All values are normalized by decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `fee`, `interest_accrued_this_period`, `token_address`

### Component C: Fluid revenue sharing allocation

- **Purpose**: Apply the revenue-sharing agreement to determine the final cost of revenue.
- **Logic**: A 50% allocation is applied to the calculated revenue of Jupiter Lend. This calculation captures the contractual obligation where half of the protocol's earnings are distributed to Fluid as a service provider fee. The resulting values are aggregated by day to represent the total operating expense for the lending product.
- **Key fields**: `revenue`, `product_id`

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

Expenses paid to third parties to deliver core service output.

JupiterJUP

Cost of revenue

Cost of revenue

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