# Marinade Liquid Staking Supply-side fees Methodology

## 1. Overview

Supply-side fees for Marinade Liquid Staking measures the total value distributed to stakers and service providers, such as validators. This metric captures the net staking rewards earned by the protocol's underlying stake accounts, supplemental income from Jito MEV tips, and validator bond settlements. It represents the gross yield generated by the staked assets minus the protocol’s commission. All values are captured on Solana and converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `rewards` data from Solana, `ClaimSettlement` and `ClaimSettlementV2` instructions from `Bond` programs, `Claim` instructions from `TipsDistribution` programs, and `WithdrawStakeAccount`, `OrderUnstake`, `UpdateActive`, and `UpdateDeactivated` instructions from `Finance` programs on Solana
- **External data**: End-of-day price feeds for Marinade Native SOL and relevant Marinade Liquid Staking staking assets

## 3. Step-by-step calculation

### Component A: Gross staking rewards capture

- **Purpose**: Identify total inflationary rewards earned by stake accounts associated with the Marinade Liquid Staking staking product.
- **Logic**: Marinade Native Solana account rewards are extracted from the ledger. Stake accounts are filtered by identifying those where the stake authority is set to the specific account associated with Marinade Liquid Staking. Reward amounts (denominated in lamports) are aggregated daily for all qualified accounts.

### Component B: Protocol commission deduction

- **Purpose**: Calculate the net rewards by removing the portion retained by the protocol as revenue.
- **Logic**: `UpdateActive` and `UpdateDeactivated` instructions from `Finance` programs are monitored to identify protocol fee collection events. SPL token `Mint` instructions directed to the treasury mSOL account are identified and matched to these instructions. The resulting amounts are subtracted from the gross staking rewards to determine the net share belonging to the supply side.

### Component C: MEV and bond payment collection

- **Purpose**: Capture supplemental yield distributed to the protocol's stake accounts.
- **Logic**: `Claim` instructions from `TipsDistribution` programs are parsed to capture MEV tips (Jito tips) distributed to stake accounts. Additionally, `ClaimSettlement` and `ClaimSettlementV2` instructions from `Bond` programs are analyzed to include payments made by validators to cover bond obligations. These amounts are added to the total supply-side fee pool.

### Component D: Withdrawal fee aggregation

- **Purpose**: Include fees generated during the liquidation of stake or delayed withdrawal processes.
- **Logic**: `WithdrawStakeAccount` and `OrderUnstake` instructions from `Finance` programs are analyzed. For `OrderUnstake` instructions, a fee rate of 0.1% is applied to the mSOL amount for transactions occurring after a specific block slot. Direct token transfers to treasury accounts triggered during `WithdrawStakeAccount` instructions are also captured and included in the supply-side calculation.

### Component E: Normalization and USD conversion

- **Purpose**: Standardize collected fee data into a common currency and unit.
- **Logic**: All captured amounts are normalized by their respective decimal precision. These values are then multiplied by end-of-day price feeds to calculate the USD value. Data is aggregated into daily totals following UTC day boundaries.

*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

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).