# vKAT Supply-side fees Methodology

## 1. Overview

Supply-side fees is defined as the share of fees that is distributed to external service providers. For vKAT, this metric is set to zero. All fees generated by vKAT, including early-exit fees and third-party voting incentives, are retained by the protocol or DAO-controlled treasury rather than being distributed to external supply-side service providers. Consequently, no fee share is allocated to external liquidity providers or infrastructure operators for this product.

## 2. Data sources

- **None**: This metric is set to a constant value and no blockchain events are consumed.

## 3. Step-by-step calculation

### Component A: Supply-side fee allocation

- **Purpose**: The definition of the portion of fees that is allocated to external service providers.
- **Logic**: A constant value of zero is applied to the supply-side fees metric for vKAT. This is done because 100% of the generated fees, such as early-exit fees and voting incentives, are retained by the protocol treasury, with no portion distributed to external supply-side participants.

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

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

Supply-side fees

Blockchains (L2)

The network uses pessimistic proofs via the AgglayerGateway for settlement on Ethereum, with vault bridges for cross-chain asset transfers.

Katana Network provides a scalable execution environment connected to Ethereum through the Agglayer interoperability layer.

vKAT

Supply-side fees

Supply-side fees

Chain breakdown