# Stargate Supply-side fees Methodology

## 1. Overview

Supply-side fees is measured as the share of transaction fees that is distributed to supply-side participants of Stargate, including liquidity providers who facilitate cross-chain asset transfers. These fees are paid by users to access deep liquidity across multiple blockchains. Because a protocol fee switch has not been activated, 100% of the fees generated by Stargate V1 and Stargate V2 are allocated directly to liquidity providers. This metric is utilized to evaluate the economic incentives provided to liquidity suppliers within the Stargate ecosystem.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pool` contracts and `createPool` function calls from `Factory` contracts for Stargate V1, alongside pool statistics and configuration state calls for Stargate V2, covering Ethereum, Arbitrum, Base, Polygon, and 18 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Stargate V1 pool identification

- **Purpose**: The identification of active Stargate V1 liquidity pools and their underlying asset decimals.
- **Logic**: Liquidity pool addresses and their associated asset details are extracted from `createPool` function calls from `Factory` contracts. For legacy pools not captured by these events, static configurations are applied to map pool addresses to their respective underlying assets and decimal precisions.
- **Key fields**: `account_address` (pool address), `token_address` (underlying asset address), `token_decimal` (decimal precision)

### Component B: Stargate V1 fee extraction

- **Purpose**: The extraction and calculation of fees generated by Stargate V1 pools.
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract liquidity provider fees and protocol fees. These fee amounts are normalized by the decimal precision of the underlying asset, which is obtained from the pool mapping. The total fee for each swap is calculated as the sum of the normalized liquidity provider fee and protocol fee.
- **Key fields**: `lp_fees` (liquidity provider fee), `protocol_fees` (protocol fee), `token_address` (underlying asset address)

### Component C: Stargate V2 pool mapping

- **Purpose**: The mapping of Stargate V2 pool addresses to their underlying assets.
- **Logic**: Pool configuration state calls are parsed to map each Stargate V2 pool address to its underlying asset address. If the underlying asset address is detected as the zero address, it is mapped to the wrapped native gas asset of the respective chain.
- **Key fields**: `pool_address` (pool address), `underlying_token_address` (underlying asset address)

### Component D: Stargate V2 fee extraction

- **Purpose**: The calculation of daily fees generated by Stargate V2 pools.
- **Logic**: Cumulative fee accrual values are retrieved from pool statistics state calls. Daily fee deltas are calculated by subtracting the previous day's cumulative fee from the current day's cumulative fee for each pool. These daily fee deltas are then normalized by the decimal precision of the underlying asset.
- **Key fields**: `fee_accrual` (cumulative fees), `pool_address` (pool address), `underlying_token_address` (underlying asset address)

### Component E: USD conversion and aggregation

- **Purpose**: The normalization of all fee values to USD and their subsequent aggregation.
- **Logic**: The extracted fees from Stargate V1 and Stargate V2 are combined. The normalized asset amounts are multiplied by end-of-day asset prices to convert the values to USD. The USD values are then aggregated by day and chain to produce the final supply-side fees metric.
- **Key fields**: `timestamp` (timing), `chain_id` (chain identification), `fees` (fee quantities)

*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

Bridges

LayerZero uses a decentralized network of Validator Nodes to facilitate secure and fast communication between different blockchains.

LayerZero allows users to send and receive messages between different blockchains, and to bridge tokens between different blockchains.

LayerZero is a cross-chain interoperability protocol that enables secure and fast communication between different blockchains.

Stargate

Supply-side fees

Supply-side fees

Chain breakdown