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).

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Marinade

# Marinade Supply-side fees Methodology

## 1. Overview

Supply-side fees for Marinade represent the total value accrued to liquidity providers and validators in the Marinade Liquid Staking staking protocol. This metric aggregates multiple revenue streams including staking rewards, MEV tips, bond payments, and withdrawal fees, minus the protocol's commission cut. The calculation identifies different Marinade products (Marinade Liquid Staking, Marinade Select, Marinade Native, treasury) and tracks fees flowing to each category to measure the total value delivered to supply-side participants.

## 2. Data sources

The calculation relies on several types of Solana blockchain data and external feeds:
- **Solana stake account authority records**: Historical data tracking authority changes for stake accounts, used to classify accounts by product type over time
- **Solana block rewards data**: Marinade Native staking rewards distributed at the block level to validator stake accounts
- **Marinade protocol instruction logs**: Parsed transaction instructions from Marinade's smart contracts including finance operations, bond settlements, and unstaking requests
- **Jito MEV distribution instruction logs**: Parsed `TipsDistribution_Claim` instructions showing MEV rewards claimed by validators
- **Solana token transfer records**: On-chain token movements including mSOL transfers during withdrawal operations
- **Solana token mint records**: mSOL token minting events during reward distribution and treasury operations
- **End-of-day token price feeds**: USD price data for SOL and mSOL tokens used for currency conversion

## 3. Step-by-step calculation

### Component A: Stake account classification
- **Purpose**: Categorizes Marinade stake accounts into different product types based on their authority addresses
- **Logic**: Uses Solana stake account authority records to identify four product categories. Treasury accounts have withdraw authority `89SrbjbuNyqSqAALKBsKBqMSh463eLvzS4iVWCeArBgB`. Marinade Liquid Staking staking accounts have stake authority `4bZ6o3eUUNXhKuqjdCnCoPAoLgWiuLYixKaxoa8PpiKk`. Marinade Select validator accounts use stake authority `STNi1NHDUi6Hvibvonawgze8fM83PFLeJhuGMEXyGps`. Marinade Native staking accounts have stake authority matching `stWirqFCf2Uts1JBL1Jsd3r6VBWhgnpdPxCTe1MFjrq` or `ex9CfkBZZd6Nv9XdnoDmmB45ymbu4arXVk7g5pWnt3N`. Uses temporal ordering with `order_id` and `next_order_id` to handle authority changes over time
- **Key fields**: `product_id`, `stake_account`, `order_id` ranges for temporal matching

### Component B: Staking rewards collection
- **Purpose**: Captures base staking rewards earned by Marinade validators
- **Logic**: Extracts rewards from Solana block rewards data where the recipient is a Marinade stake account. Joins reward records with stake account classifications using temporal matching to assign the correct product category. Filters out treasury accounts to focus on supply-side participants. All amounts are in SOL tokens and contribute positively to supply-side fees
- **Key fields**: `amount` in SOL lamports, `reward_type`, `account_address` matched to stake accounts

### Component C: Marinade Liquid Staking staking rewards cut (protocol commission)
- **Purpose**: Subtracts the protocol's commission from Marinade Liquid Staking staking rewards
- **Logic**: Identifies mSOL token mints to treasury accounts during `Finance_UpdateActive_instruction` and `Finance_UpdateDeactivated_instruction` operations. These represent the protocol's cut of staking rewards before distribution to Marinade Liquid Staking staking token holders. The amounts are subtracted (negative) from supply-side fees since they represent protocol revenue rather than rewards to suppliers
- **Key fields**: `amount` in mSOL, treasury `account_address`, mint transaction details

### Component D: Jito MEV tips distribution
- **Purpose**: Adds MEV (Maximum Extractable Value) rewards distributed through Jito to Marinade validators
- **Logic**: Captures SOL amounts from `TipsDistribution_Claim_instruction` events where the claimant is a Marinade stake account. Joins with stake account classifications and filters out treasury accounts. These represent additional rewards beyond base staking that flow to validators and contribute to supply-side value
- **Key fields**: `amount` in SOL, `claimant` address matched to stake accounts

### Component E: Bond settlement payments
- **Purpose**: Captures bond-related payments to stake accounts
- **Logic**: Extracts SOL amounts from bond settlement instructions including both `Bond_ClaimSettlementV2_instruction` and `Bond_ClaimSettlement_instruction` events. Matches settlement recipients to stake account classifications and excludes treasury accounts. These payments represent additional rewards or settlements flowing to supply-side participants
- **Key fields**: `amount` in SOL, `stakeAccountTo` recipient address

### Component F: Delayed withdrawal fees
- **Purpose**: Captures fees collected during Marinade Liquid Staking staking withdrawal operations
- **Logic**: Implements two fee collection mechanisms for Marinade Liquid Staking product only. The 'new' method captures mSOL token transfers to treasury accounts during `Finance_WithdrawStakeAccount_instruction` transactions. The 'old' method applies a 0.1% fee rate to unstake amounts from `Finance_OrderUnstake_instruction` operations, but only after block slot 340958004. Both mechanisms collect fees that contribute to supply-side value
- **Key fields**: Transfer `amount` for new fees, calculated percentage for old fees, conditional logic based on `block_slot`

### Final aggregation
- **Combining components**: All five fee sources are combined using union operations with appropriate positive or negative signs. Staking rewards, MEV tips, bond payments, and withdrawal fees are added as positive contributions. The Marinade Liquid Staking staking rewards cut is subtracted as it represents protocol commission rather than supply-side value
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied for SOL (9 decimals) and mSOL token amounts
- **Time aggregation**: Transaction timestamps are truncated to daily boundaries for consistent time-series aggregation across all fee sources
- **Final calculation**: The daily supply-side fees equal the sum of all positive fee components minus the protocol's Marinade Liquid Staking staking commission, expressed in USD after decimal correction and price conversion

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

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

MarinadeMNDE

Supply-side fees

Supply-side fees

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