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 Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Jupiter to operate its business. For Jupiter Lend, this specifically represents the revenue-sharing payments made to Fluid, the protocol's underlying lending infrastructure provider. These expenses are calculated as a 50% allocation of the total protocol revenue generated through interest accruals.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Jupiter Lend interest tracking

- **Purpose**: Calculates the interest accrued on active loan balances as the basis for expense allocation.
- **Logic**: Borrow and supply amounts are parsed from `Operate` instructions to maintain running balances for each asset. Utilization rates are calculated by dividing the active loan balance by the total supply balance. Interest rate parameters, including kink points and tiered rates, are extracted from `UpdateRateDataV1` and `UpdateRateDataV2` instructions. Compound interest is accrued between instruction timestamps by applying the calculated interest rate to the outstanding loan balance for the elapsed time period.
- **Key fields**: `borrow_amount`, `supply_amount`, `rate_bps`, `timestamp`

### Component B: Jupiter Lend revenue calculation

- **Purpose**: Determines the protocol's total revenue prior to expense allocation.
- **Logic**: Protocol fee rates are identified from `UpdateTokenConfig` instructions. Revenue is calculated by multiplying the total interest accrued during each period by the applicable protocol fee rate. Amounts are normalized by asset decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `fee`, `interest_accrued_this_period`

### Component C: Expense allocation for Fluid infrastructure

- **Purpose**: Calculates the final expense based on the revenue-sharing agreement with Fluid.
- **Logic**: A 50% allocation is applied to the total protocol revenue calculated for Jupiter Lend. This value is recorded as an operating expense, representing the cost of utilizing Fluid's lending infrastructure. Daily totals are aggregated with UTC day boundaries.
- **Key fields**: `revenue`, `cost_of_revenue` (derived)

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

Total project operating and incentive expenses.

JupiterJUP

Expenses

Expenses

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