# Whirlpools Fees Methodology

## 1. Overview

The total value paid by users to utilize Whirlpools is measured by Fees. These fees are generated from swap transactions executed within concentrated liquidity pools on Solana. The collected fees are distributed as supply-side fees to liquidity providers and as protocol fees to the protocol treasury. Economic activity and fee-generation capability within concentrated liquidity pools are evaluated using this metric.

## 2. Data sources

- **Blockchain events**: `Traded` events from program logs, and `InitializeConfig`, `SetDefaultProtocolFeeRate`, `InitializeFeeTier`, `SetDefaultFeeRate`, `InitializeAdaptiveFeeTier`, `SetDefaultBaseFeeRate`, `InitializePool`, `InitializePoolV2`, `InitializePoolWithAdaptiveFee`, `SetProtocolFeeRate`, and `SetFeeRate` from the `Whirlpool` program, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Whirlpools trade execution tracking

- **Purpose**: Capture swap transactions executed on Whirlpools.
- **Logic**: Swap transactions are filtered from Solana DEX trade records where the executing program matches the Whirlpools program account (`whirLbMiicVdio4qvUfM5KAg6Ct8VwpYzGff3uctyCc`). Raw asset trade amounts are extracted and normalized by decimal precision using asset metadata.
- **Key fields**: `block_timestamp`, `pool_address`, `amount_0`, `amount_1`, `token_address_0`, `token_address_1`

### Component B: Whirlpools fee rate configuration modeling

- **Purpose**: Establish the baseline trade fee rates and protocol fee shares for each pool.
- **Logic**: Pool metadata, including asset accounts, fee tiers, and the pool initialization timestamp, is resolved from pool initialization instructions, specifically `InitializePool`, `InitializePoolV2`, and `InitializePoolWithAdaptiveFee` from the `Whirlpool` program. Baseline trade fee rates and protocol fee shares are derived from default configurations (`InitializeFeeTier`, `SetDefaultFeeRate`, `InitializeAdaptiveFeeTier`, `SetDefaultBaseFeeRate`, `InitializeConfig`, and `SetDefaultProtocolFeeRate`) in force at the time of pool initialization. Subsequent pool-specific overrides are applied using `SetFeeRate` and `SetProtocolFeeRate` instructions based on the trade timestamp.
- **Key fields**: `trade_fee_rate`, `protocol_fee_rate`, `fee_tier`, `config`, `initialized_at`

### Component C: Whirlpools log-based fee extraction

- **Purpose**: Extract actual fees charged from on-chain program logs, particularly for adaptive fee pools.
- **Logic**: Transaction log messages containing the `Traded` event discriminator from the Whirlpools program are parsed. Raw byte data is decoded, and the input amount, liquidity provider fee, and protocol fee are extracted as little-endian unsigned 64-bit integers. The actual trade fee rate is calculated as the sum of the liquidity provider fee and protocol fee divided by the input amount. The protocol fee share is calculated as the protocol fee divided by the total fee.
- **Key fields**: `input_amount_raw`, `lp_fee_raw`, `protocol_fee_raw`

### Component D: Whirlpools fee rate consolidation and USD valuation

- **Purpose**: Combine fee rates, value trading volume in USD, and calculate total fees.
- **Logic**: For each pool and day, the log-extracted fee rates from the `Traded` events are prioritized; if these are unavailable, the modeled fee rates are applied. Trading volumes are converted to USD using end-of-day price feeds. A valuation logic is applied where the minimum USD value of the two swap legs is selected, except when one leg is a tokenized stock, in which case that leg's value is preferred. Total fees are calculated by multiplying the USD-denominated trading volume by the consolidated trade fee rate, with the final values aggregated daily.
- **Key fields**: `trading_volume`, `trade_fee_rate`, `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

Exchanges (DEX)

Users are able to use the Orca protocol to transact with digital assets on a peer-to-peer or peer-to-protocol basis by trading against liquidity  pools, which are created and seeded by other users providing liquidity of a pair of tokens into such liquidity pools in exchange for a stake of the liquidity and trading fees generated by such pools.

Orca is a non-custodial automated market maker (AMM) protocol built on Solana. Orca was founded by Yutaro Mori and Grace Kwan and launched in 2021.

ORCA tokenholders govern the Orca protocol treasury, which receives a portion of the trading fees paid by users of the protocol.