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# Meteora Fees Supply Side Methodology

## 1. Overview

Supply-side fees measures the portion of trading fees distributed to service providers on the Meteora platform, including liquidity providers, pool creators, and referrers. This metric represents the total incentives earned by participants for providing liquidity and facilitating trade volume across Meteora DLMM, Meteora Launchpad, and Meteora Liquidity Pools. Supply-side fees are calculated by subtracting the protocol's share from the total fees collected, with host and referral fees flowing to the supply side.

## 2. Data sources

- **Blockchain events**: `Swap` and `LbPairCreate` events from `DLMM` programs, `EvtSwap` and `EvtWithdrawMigrationFee` events and `Migration` instructions from `DBC` programs, `EvtSwap2` events from `DAMM_v2` programs, `Swap`, `InitializePool`, `SetPoolFees`, and `CreateConfig` instructions from `DAMM_v1` programs, Solana account balances, and decentralized exchange trades, covering Solana
- **External data**: End-of-day price feeds for assets traded across all Meteora products

## 3. Step-by-step calculation

### Component A: Meteora DLMM fee extraction

- **Purpose**: Capture the share of fees distributed to liquidity providers and referrers in the Meteora DLMM product.
- **Logic**: `Swap` events from `DLMM` programs are parsed to identify total fees and protocol fees. Total fees are inclusive of host fees (referral cuts). Fee assets are determined by the pool's collection mode, routing to either the input asset or always to the second asset (`token_y`). Supply-side fees are calculated by subtracting the protocol fee from the total fee amount, allowing host fees to flow to the supply side.
- **Key fields**: `fee` (total), `protocol_fee`, `swap_for_y` (direction).

### Component B: Meteora Launchpad fee extraction

- **Purpose**: Capture the share of fees distributed to pool creators, referrers, and liquidity providers in the Meteora Launchpad product.
- **Logic**: Fees are extracted from three sources: Dynamic Buyback and Claim (DBC) swaps, DBC token migrations, and graduated liquidity pools. For DBC swaps, `EvtSwap` events from `DBC` programs are parsed, where total fees (the sum of trading, protocol, and referral fees) are collected in the output asset, and supply-side fees are calculated by subtracting the protocol fee. For token migrations, `EvtWithdrawMigrationFee` events from `DBC` programs are parsed to capture withdrawn migration fees, with the protocol fee subtracted based on the partner flag. For graduated pools, DAMM V1 and DAMM V2 pools that originated from a DBC bonding-curve graduation (identified via `Migration` instructions from `DBC` programs) have their fees routed to this product.
- **Key fields**: `swap_result_trading_fee`, `swap_result_protocol_fee`, `swap_result_referral_fee`, `trade_direction`, `fee` (withdrawn migration fee), `flag`.

### Component C: Meteora Liquidity Pools fee extraction

- **Purpose**: Capture the share of fees distributed to liquidity providers and referrers in the Meteora Liquidity Pools product.
- **Logic**: Fees are extracted from DAMM V1 and DAMM V2 pools that did not originate from a DBC graduation. For DAMM V2, `EvtSwap2` events from `DAMM_v2` programs are parsed, where total fees (the sum of claiming, protocol, compounding, and referral fees) are collected, and supply-side fees are calculated by subtracting the protocol fee. For DAMM V1, `Swap` instructions from `DAMM_v1` programs are parsed, and total fees are derived by multiplying the swap input amount by the pool's fee schedule (obtained from `SetPoolFees` instructions or `CreateConfig` fallback instructions). DAMM V1 supply-side fees are calculated by subtracting the derived protocol fee (owner trade fee) from the derived total fee.
- **Key fields**: `swap_result_claiming_fee`, `swap_result_compounding_fee`, `swap_result_protocol_fee`, `swap_result_referral_fee`, `collect_fee_mode`, `amount` (input amount), `trade_fee_numerator`, `trade_fee_denominator`, `owner_trade_fee_numerator`, `owner_trade_fee_denominator`.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all fee components to USD and aggregate them for reporting.
- **Logic**: Raw fee amounts are normalized by asset-specific decimal precision. To maintain consistency with filtered volume, pool-days flagged for wash trading—specifically DAMM V2 pools where daily volume exceeds 20 times the reserve—are excluded. These values are multiplied by end-of-day price feeds to determine the USD value. Fees are aggregated by day and product using 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.

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Supply-side fees

Supply-side fees

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