# Whirlpools Supply-side fees Methodology

## 1. Overview

The share of fees that goes to the service providers is measured by supply-side fees for Whirlpools. This metric is utilized to assess the economic incentives and yield potential available to liquidity providers within the Whirlpools concentrated liquidity pools. By subtracting the protocol's fee share from the total trade fees collected, the direct earnings flowing to the supply-side participants are isolated. These fees are denominated in the traded assets and converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `Traded` events parsed from program logs, DEX trade records, and configuration instructions—including `InitializePool`, `InitializePoolV2`, `InitializePoolWithAdaptiveFee`, `SetFeeRate`, `SetProtocolFeeRate`, `InitializeFeeTier`, `SetDefaultFeeRate`, `InitializeAdaptiveFeeTier`, `SetDefaultBaseFeeRate`, `InitializeConfig`, and `SetDefaultProtocolFeeRate`—from `Whirlpool` programs, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Whirlpools trade volume tracking

- **Purpose**: Capture the raw trading volume for Whirlpools
- **Logic**: DEX trades executed through the Whirlpools program are extracted from Solana DEX trade records. The raw trade amounts for both assets in a trading pair are normalized by their respective decimal precisions using asset metadata.
- **Key fields**: `block_timestamp` (timing), `amount_0` (base asset quantity), `amount_1` (quote asset quantity), `token_address_0` (base asset identification), and `token_address_1` (quote asset identification)

### Component B: Whirlpools fee rate and fee share determination

- **Purpose**: Determine the trade fee rate and the protocol fee share for each pool
- **Logic**: Fee rates are determined using a dual-path approach. For pools and days with active `Traded` events in the program logs, the actual charged rates are calculated directly: the trade fee rate is calculated as the sum of the liquidity provider fee and protocol fee divided by the input amount, and the protocol fee share is calculated as the protocol fee divided by the sum of the liquidity provider and protocol fees. For periods or pools without log coverage, modeled rates are applied by coalescing pool-specific rates (configured via `SetFeeRate` and `SetProtocolFeeRate` instructions) with default rates (configured via `InitializeFeeTier`, `SetDefaultFeeRate`, `InitializeAdaptiveFeeTier`, `SetDefaultBaseFeeRate`, `InitializeConfig`, or `SetDefaultProtocolFeeRate` instructions) in force at the time of pool initialization. The supply-side fee share is then calculated as one minus the protocol fee share.
- **Key fields**: `lp_fee` (liquidity provider fee amount), `protocol_fee` (protocol fee amount), `input_amount` (input trade amount), `trade_fee_rate` (total fee rate), `protocol_fee_share` (protocol's portion of fees), and `supply_side_fee_share` (liquidity provider's portion of fees)

### Component C: USD valuation and supply-side fee aggregation

- **Purpose**: Convert trading volumes to USD and calculate the final supply-side fees
- **Logic**: Normalized trading volumes are converted to USD by multiplying the asset amounts by their end-of-day prices, taking the conservative valuation of the two trade legs, except for trades involving exactly one tokenized stock, which are valued using the price of the tokenized stock leg. Daily supply-side fees are then calculated by multiplying the USD-denominated trading volume by the trade fee rate and the supply-side fee share. The resulting values are aggregated daily with UTC day boundaries.
- **Key fields**: `trading_volume` (USD-denominated volume), `trade_fee_rate` (total fee rate), `supply_side_fee_share` (liquidity provider's portion of fees), and `fees_supply_side` (final supply-side fees in USD)

*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

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.