# Marinade Liquid Staking Fees Methodology

## 1. Overview

Fees measures the total economic value generated by Marinade Liquid Staking through staking rewards, MEV tips, and withdrawal fees. This metric represents the gross value paid by users or earned by the underlying assets before distribution to stakers or the protocol treasury. Fees are primarily denominated in SOL and include rewards earned from the Solana inflation schedule, MEV tips captured via Jito, and specific service fees charged for instant or delayed unstaking operations.

## 2. Data sources

- **Blockchain events**: `WithdrawStakeAccount`, `OrderUnstake`, `LiquidUnstake`, `UpdateActive`, and `UpdateDeactivated` instructions from the `Finance` program, `ClaimSettlement` and `ClaimSettlementV2` instructions from the `Bond` program, `Claim` instructions from the `TipsDistribution` program, and Marinade Native SOL `rewards` records, covering Solana
- **External data**: End-of-day price feeds for SOL

## 3. Step-by-step calculation

### Component A: Staking rewards and MEV capture

- **Purpose**: Captures the base yield and MEV-related income generated by the Marinade Liquid Staking staking pool.
- **Logic**: Marinade Native SOL staking rewards are identified for all Solana accounts associated with the Marinade Liquid Staking program. MEV income is captured by parsing `Claim` instructions from the Jito `TipsDistribution` program for relevant stake accounts. These components represent the gross supply-side revenue generated by the underlying staked SOL.

### Component B: Withdrawal fee extraction

- **Purpose**: Captures fees paid by users when exiting Marinade Liquid Staking staking positions.
- **Logic**: Fees are extracted from two primary withdrawal paths. Instant withdrawal fees are identified by parsing token transfers associated with `LiquidUnstake` instructions directed to treasury accounts. Delayed withdrawal fees are calculated by parsing `WithdrawStakeAccount` and `OrderUnstake` instructions; for certain transaction types, a fixed 0.1% fee rate is applied to the unstaked amount, while for others, direct transfers to treasury accounts are tracked.

### Component C: Protocol rewards cut and bond allocations

- **Purpose**: Identifies the portion of yield retained by the protocol and additional revenue from validator bonds.
- **Logic**: The protocol's share of staking rewards is identified through `UpdateActive` and `UpdateDeactivated` instructions, which trigger the minting of mSOL to the treasury. Additionally, bond payments are parsed from `ClaimSettlement` and `ClaimSettlementV2` instructions from the `Bond` program. These payments are allocated to the product based on the proportional TVL of Marinade Liquid Staking relative to other Marinade products.

### Component D: USD conversion and final aggregation

- **Purpose**: Normalizes all identified fee components into a single USD-denominated metric.
- **Logic**: All identified SOL and token amounts are normalized by their respective decimal precision. The values are then multiplied by end-of-day price feeds. The final Fees metric is calculated as the sum of protocol revenue (rewards cut, instant withdrawal fees, and allocated bond revenue) and supply-side fees (net staking rewards, MEV tips, and delayed withdrawal fees). Data is aggregated to daily granularity using UTC day boundaries.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Liquid staking

Stakers deposit funds into Marinade and receive a return on investment in the form of staking rewards (supply-side fees).

Marinade is a non-custodial staking protocol built on Solana. Marinade was co-founded by Lucio Tato and launched in 2021.

MNDE tokenholders own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue).