# Meteora Liquidity Pools Fees Supply Side Methodology

## 1. Overview

Supply-side fees are defined as the share of transaction fees distributed to liquidity providers and other supply-side participants within Meteora Liquidity Pools. This metric is used to quantify the economic incentives generated for service providers allocating capital to the protocol's dynamic automated market maker (DAMM) pools. It is calculated as the difference between total swap fees and the protocol's retained revenue (protocol fees). The resulting values are normalized by decimal precision and converted to USD.

## 2. Data sources

- **Blockchain events**: `Swap`, `SetPoolFees`, and `CreateConfig` from the `DAMM_v1` program, `EvtSwap2` from the `DAMM_v2` program, `Migration` from the `DBC` program, and token balance changes on Solana
- **External data**: End-of-day price feeds for assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Pool origin and wash trading filtering

- **Purpose**: Exclude graduated bonding curve pools and wash trading pool-days to isolate organic Meteora Liquidity Pools activity.
- **Logic**: `Migration` from the `DBC` program is parsed to identify pools originating from a bonding-curve graduation. These graduated pools are excluded from the Meteora Liquidity Pools product scope and instead attributed to Meteora Launchpad. Additionally, DAMM V2 pool-days are excluded if a daily volume-to-reserve ratio greater than 20 is detected, which is indicative of wash trading. Only non-graduated, organic DAMM V1 and DAMM V2 pools are retained.
- **Key fields**: `pool_address`, `instruction_type`, `timestamp`, `turnover`

### Component B: DAMM V1 fee extraction

- **Purpose**: Calculate total and protocol fees for DAMM V1 pools.
- **Logic**: Since swap events with explicit fee fields are not emitted by DAMM V1, fees are derived by multiplying the swap input amount from `Swap` from the `DAMM_v1` program by the active fee schedule. The fee schedule is determined from `SetPoolFees` from the `DAMM_v1` program, falling back to `CreateConfig` from the `DAMM_v1` program if no pool-specific fees were set. Total fees are calculated as the input amount multiplied by the trade fee ratio. Protocol fees are calculated by applying the owner trade fee ratio to the total fees. The fee asset is identified based on the protocol fee account matching the pool's asset configuration.
- **Key fields**: `pool_address`, `amount`, `protocol_token_fee`, `trade_fee_numerator`, `trade_fee_denominator`, `owner_trade_fee_numerator`, `owner_trade_fee_denominator`

### Component C: DAMM V2 fee extraction

- **Purpose**: Calculate total and protocol fees for DAMM V2 pools.
- **Logic**: Fees are extracted directly from `EvtSwap2` from the `DAMM_v2` program. Total fees are calculated as the sum of the claiming fee, protocol fee, compounding fee, and referral fee. Protocol fees are mapped directly from the protocol fee field. The fee asset is determined by the swap trade direction and the pool's fee collection mode.
- **Key fields**: `pool_address`, `trade_direction`, `collect_fee_mode`, `claiming_fee`, `protocol_fee`, `compounding_fee`, `referral_fee`

### Component D: Supply-side fee calculation

- **Purpose**: Determine the net fees allocated to supply-side participants.
- **Logic**: Supply-side fees are calculated by subtracting protocol fees from total fees for both DAMM V1 and DAMM V2 pools. This is distributed to liquidity providers and referrers.
- **Key fields**: `fee_amount`, `protocol_fee_amount`

### Component E: Decimal normalization and USD conversion

- **Purpose**: Normalize asset amounts and convert them to USD.
- **Logic**: Raw supply-side fee amounts are normalized by the decimal precision of each respective asset using asset metadata. The normalized amounts are then multiplied by the end-of-day asset prices to convert them to USD. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `token_address`, `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