# ARM Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of yield and collected fees generated by ARM that is distributed to or retained by liquidity providers. This metric represents the gross earnings of the product minus the portion captured by the protocol as revenue. It reflects the economic incentives provided to service providers for supplying liquidity to the automated reward manager infrastructure.

## 2. Data sources

- **Blockchain events**: `Deposit`, `RedeemRequested`, `FeeCollected`, and `FeeUpdated` events from `LidoARM` contracts on Ethereum
- **Blockchain data**: Asset balance state values from `LidoARM` contracts on Ethereum
- **External data**: End-of-day price feeds for assets held within ARM

## 3. Step-by-step calculation

### Component A: ARM yield and direct fee tracking

- **Purpose**: Captures the gross yield and direct fees generated by the ARM product.
- **Logic**: Daily yield is derived by calculating the change in total assets held by the `LidoARM` contract, adjusted for cumulative net flows identified via `Deposit` and `RedeemRequested` events. Direct fees are extracted from `FeeCollected` events emitted by the same contracts. This component establishes the total revenue base before protocol fee deductions.
- **Key fields**: `block_timestamp`, `amount`, `total_assets`, `daily_deposits`, `daily_withdrawals`

### Component B: Protocol fee configuration

- **Purpose**: Identifies the fee percentage retained by the protocol to distinguish between protocol revenue and supply-side fees.
- **Logic**: Protocol fee rates are parsed from `FeeUpdated` events from `LidoARM` contracts. A historical timeline of fee adjustments is maintained to ensure the correct rate is applied to the revenue generated at any specific point in time.
- **Key fields**: `block_timestamp`, `protocol_fee_rate`

### Component C: Supply-side allocation and USD conversion

- **Purpose**: Calculates the final supply-side portion and normalizes the value to USD.
- **Logic**: Supply-side fees are calculated by subtracting the protocol's share from the total yield and collected fees using the formula `supply_side_fees = total_amount * (1 - protocol_fee_rate)`. Calculated amounts are normalized by decimal precision and multiplied by end-of-day price feeds. Values are aggregated to a daily frequency using UTC day boundaries.
- **Key fields**: `block_timestamp`, `fees_supply_side`, `price_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

Liquid staking

github

ARMARM

Supply-side fees

Supply-side fees

Chain breakdown