Liquidity providers deposit funds into Osmosis and receive trading fees from traders (supply-side fees).

Osmosis is a non-custodial exchange protocol built on Cosmos ecosystem. Osmosis was launched in June 2021.

OSMO token holders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

governance

github

twitter

discord

etherscan

website

Exchanges (DEX)

Osmosis

# Osmosis Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of trading fees that flow to liquidity providers and the protocol on the Osmosis AMM (Automated Market Maker) exchange. This metric quantifies the daily fee revenue earned by the supply side of the marketplace - those who provide liquidity to trading pairs and enable exchange functionality. The calculation aggregates all fee collections from AMM operations and presents them from the perspective of fee recipients rather than fee payers.

## 2. Data sources

The calculation relies on the following data sources:
- **Osmosis fee collection records**: Raw blockchain data capturing fee amounts collected from AMM exchange operations
- **Transaction fee data**: Detailed records of `fees_spent` amounts from Osmosis network transactions
- **AMM operation logs**: Fee generation events from automated market maker swap and liquidity operations

## 3. Step-by-step calculation

### Component A: Fee data extraction
- **Purpose**: Extract and standardize raw fee collection amounts from Osmosis blockchain operations
- **Logic**: Raw fee collection data is sourced from Osmosis network records containing `fees_spent` amounts. Each record represents fees collected from AMM exchange activities including swaps, liquidity provisions, and other exchange operations. The data is standardized with consistent metadata including daily timestamp granularity, chain identification as 'osmosis', business line classification as 'Exchange AMM', market sector as 'exchanges', and business segment as 'dex'. All fee amounts are cast to high-precision numeric format to ensure accurate calculations.
- **Key fields**: `fees_spent` amounts converted to `amount`, `timestamp` with daily grain, chain and business classification metadata

### Component B: Metric standardization
- **Purpose**: Process fee data through standardization and validation pipeline
- **Logic**: The standardized fee data undergoes processing through a finalization macro that validates schema consistency, ensures proper data types, and implements gap-filling logic. Missing periods are filled with zero values to maintain continuous time series data. The process validates that all required identifiers are present and consistent, ensuring data quality and completeness across the time series.
- **Key fields**: Validated `fees` amounts, consistent `timestamp_grain`, standardized `chain_id` and classification fields

### Final aggregation
- **Combining components**: The processed fee data flows directly from the standardization component without additional combining steps
- **Currency conversion**: Fee amounts are maintained in their native units as reported from the blockchain
- **Time aggregation**: Data is aggregated at daily boundaries using the 'day' timestamp grain
- **Final calculation**: The final metric is calculated by renaming the standardized `fees` field to `fees_supply_side`, explicitly indicating that these represent fees flowing to the supply side (liquidity providers and protocol) rather than fees paid by demand side (traders). This provides clarity on the fee flow perspective and distinguishes supply-side revenue from demand-side costs.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Portion of fees distributed to service providers or supply-side participants.

OsmosisOSMO

Archived

Supply-side fees

Supply-side fees

Competitive landscape