# Meteora Launchpad Fees Methodology

## 1. Overview

Fees are measured as the total value paid by users to trade on Meteora Launchpad. Trading fees, protocol fees, and referral fees generated during the bonding curve phase (Dynamic Bonding Curve, or DBC) as well as fees from graduated liquidity pools (DAMM V1 and DAMM V2) that originated from bonding curve migrations are included. These fees are denominated in the respective traded assets and converted to USD.

## 2. Data sources

- **Blockchain events**: `EvtSwap` and `EvtWithdrawMigrationFee` from `DBC` programs, `EvtSwap2` from `DAMM_v2` programs, `Swap` from `DAMM_v1` programs, and `Migration` from `DBC` programs, as well as Solana asset balance changes and DEX trade records, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Dynamic Bonding Curve swap fee extraction

- **Purpose**: Fees generated during the bonding curve phase of launchpad pools are captured.
- **Logic**: `EvtSwap` from `DBC` programs are parsed. Fees are recognized at swap time in the output asset. If the trade direction is base-to-quote (representing a sell), the fee is collected in the quote asset. If the trade direction is quote-to-base (representing a buy), the fee is collected in the base asset. The total fee is calculated as the sum of the trading fee, protocol fee, and referral fee. The protocol fee portion is tracked separately to represent protocol revenue.
- **Key fields**: `trade_direction`, `trading_fee`, `protocol_fee`, `referral_fee`

### Component B: Dynamic Bonding Curve asset migration fee extraction

- **Purpose**: Fees collected when graduated asset migration fees are withdrawn from escrow are captured.
- **Logic**: `EvtWithdrawMigrationFee` from `DBC` programs are parsed. These claim-based fees are denominated in the quote asset. The total fee is represented by the withdrawn fee amount. If the flag is set to zero (representing partner or protocol allocation), the protocol fee is set to the withdrawn fee amount; otherwise, the protocol fee is set to zero.
- **Key fields**: `flag`, `fee_amount`

### Component C: Graduated pool identification

- **Purpose**: DAMM V1 and DAMM V2 pools that originated from bonding curve graduations are identified.
- **Logic**: `Migration` from `DBC` programs are parsed to map graduated pool addresses to their origin virtual pools. This lineage is used to attribute fees from these specific DAMM V1 and DAMM V2 pools to Meteora Launchpad instead of other Meteora products.
- **Key fields**: `pool_address`, `virtual_pool`, `instruction_type`

### Component D: Graduated DAMM V1 pool fee calculation

- **Purpose**: Fees for graduated pools operating on the DAMM V1 program are calculated.
- **Logic**: `Swap` from `DAMM_v1` programs are parsed. Since DAMM V1 does not emit swap instructions with fee details, fees are calculated by multiplying the input amount by the pool's active fee schedule. The fee schedule is determined from `SetPoolFees` from `DAMM_v1` programs, or falls back to default configuration fee schedules from `CreateConfig` from `DAMM_v1` programs if no pool-specific fees are set. Fees are collected in the input asset.
- **Key fields**: `amount`, `trade_fee_numerator`, `trade_fee_denominator`, `owner_trade_fee_numerator`, `owner_trade_fee_denominator`

### Component E: Graduated DAMM V2 pool fee calculation

- **Purpose**: Fees for graduated pools operating on the DAMM V2 program are calculated.
- **Logic**: `EvtSwap2` from `DAMM_v2` programs are parsed. Fees are recognized at swap time. The total fee is calculated as the sum of the claiming fee, protocol fee, compounding fee, and referral fee. The fee asset is determined by the fee collection mode and trade direction: if the mode is zero and the trade direction is zero, the fee is in asset B; if the mode is zero and the trade direction is one, the fee is in asset A; otherwise, the fee is in asset B.
- **Key fields**: `collect_fee_mode`, `trade_direction`, `claiming_fee`, `protocol_fee`, `compounding_fee`, `referral_fee`

### Component F: Wash trading filtration

- **Purpose**: Inorganic volume and fees from DAMM V2 pools are identified and filtered out.
- **Logic**: Daily quote-leg volume is compared against daily quote-leg reserves for DAMM V2 pools. Pool-days where the turnover ratio (daily quote-leg volume divided by quote-leg reserve) exceeds 20 are flagged as wash trading. Fees generated on these flagged pool-days are excluded from the final aggregation.
- **Key fields**: `pool_address`, `timestamp`, `turnover`

### Component G: Re-bucketing, normalization, and USD conversion

- **Purpose**: Fees are aggregated, attributed to Meteora Launchpad, and converted to USD.
- **Logic**: Fees from DBC swaps, asset migrations, and graduated DAMM V1 and DAMM V2 pools (identified via the migration lineage) are aggregated, excluding flagged wash trading pool-days. All fee amounts are normalized by decimal precision using asset metadata and multiplied by end-of-day asset prices to convert to USD. Daily granularity is applied with UTC day boundaries.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `token_address`, `fees`

*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