# Meteora Launchpad Fees Supply Side Methodology

## 1. Overview

The share of transaction and migration fees generated on Meteora Launchpad that is distributed to liquidity providers, creators, and referrers is measured by Supply-side fees. The economic incentives provided to creators and liquidity providers participating in the launchpad ecosystem are reflected by this metric. Both active Dynamic Bonding Curve (DBC) pools and graduated liquidity pools (DAMM V1 and DAMM V2) that originated from bonding curve graduations are encompassed by Meteora Launchpad. By tracking these distributions, the direct compensation flowing to supply-side participants is quantified.

## 2. Data sources

- **Blockchain events**: `EvtSwap` and `EvtWithdrawMigrationFee` from `DBC` programs, `EvtSwap2` from `DAMM V2` programs, `Swap` from `DAMM V1` programs, along with pool initialization, configuration, and migration instructions including `InitializeVirtualPoolWithSplToken`, `InitializeVirtualPoolWithToken2022`, `Migration`, `InitializePool`, `InitializeCustomizablePool`, `InitializePoolWithDynamicConfig`, `SetPoolFees`, and `CreateConfig` from `DBC`, `DAMM V1`, and `DAMM V2` programs, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Dynamic Bonding Curve (DBC) swap fees

- **Purpose**: The fees generated from swaps on active bonding curve pools are captured.
- **Logic**: `EvtSwap` from `DBC` programs is parsed. Total fees are calculated as the sum of trading fees, protocol fees, and referral fees. Protocol fees are tracked separately. Supply-side fees are calculated as total fees minus protocol fees, representing the creator and referrer shares. The fee asset is determined by the trade direction, where quote assets are selected for base-to-quote sells and base assets are selected for quote-to-base buys.
- **Key fields**: `swap_result_trading_fee`, `swap_result_protocol_fee`, `swap_result_referral_fee`, `trade_direction`

### Component B: DBC token migration fees

- **Purpose**: Fees collected when graduated assets migrate from bonding curves to AMM pools are captured.
- **Logic**: `EvtWithdrawMigrationFee` from `DBC` programs is parsed to identify when accrued migration fees are withdrawn from escrow. Total fees are extracted from the raw fee amount. Protocol fees are set equal to the fee amount if the flag is 0 (representing partner/protocol withdrawals), and are set to zero if the flag is 1 (representing creator withdrawals). Supply-side fees are calculated as total fees minus protocol fees. The fee asset is mapped to the quote asset of the pool.
- **Key fields**: `fee` (withdrawn amount), `flag`

### 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 is parsed to map the original virtual pool to the newly created DAMM V1 or DAMM V2 pool. This mapping is utilized to attribute fees from these specific AMM pools to Meteora Launchpad rather than Meteora Liquidity Pools.
- **Key fields**: `pool`, `virtual_pool`, `instruction_type`

### Component D: Graduated DAMM V1 pool fees

- **Purpose**: Supply-side fees for graduated DAMM V1 pools are calculated.
- **Logic**: `Swap` from `DAMM V1` programs is parsed. Total fees are calculated by multiplying the input amount by the pool's trade fee rate, which is retrieved from the fee history configured via `SetPoolFees` or `CreateConfig` from `DAMM V1` programs. Protocol fees are calculated by applying the owner trade fee rate to the total fees. Supply-side fees are calculated as total fees minus protocol fees. The fee asset is identified by matching the protocol fee account with the pool's initialized fee accounts.
- **Key fields**: `in_amount`, `protocol_token_fee`, `trade_fee_numerator`, `owner_trade_fee_numerator`

### Component E: Graduated DAMM V2 pool fees

- **Purpose**: Supply-side fees for graduated DAMM V2 pools are calculated.
- **Logic**: `EvtSwap2` from `DAMM V2` programs is parsed. Total fees are calculated as the sum of claiming, protocol, compounding, and referral fees. Protocol fees are extracted from the protocol fee field. Supply-side fees are calculated as total fees minus protocol fees. The fee asset is determined based on the pool's fee collection mode and trade direction.
- **Key fields**: `swap_result_claiming_fee`, `swap_result_protocol_fee`, `swap_result_compounding_fee`, `swap_result_referral_fee`, `collect_fee_mode`, `trade_direction`

### Component F: Normalization and USD conversion

- **Purpose**: Supply-side fees are normalized and converted to USD.
- **Logic**: Supply-side fees from DBC swaps, token migrations, and graduated DAMM V1/V2 pools are aggregated daily, excluding pool-days flagged for wash trading where daily volume exceeds 20 times the reserve. Raw asset amounts are normalized by decimal precision using asset metadata and multiplied by end-of-day asset prices to obtain the USD value. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `fees`, `protocol_fees`, `supply_side_fees`

*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