# Paragon BTCD Supply-side fees Methodology

## 1. Overview

This page covers the BTCD market (`para:BTCD`) on Paragon, one of the markets deployed under the `para` namespace on Hyperliquid HyperCore. The calculation is identical across all Paragon markets; the figures on this page are scoped to the BTCD market.

Supply-side fees measures the portion of user-paid trading fees that does not accrue to Paragon. This bucket combines two components, both routed by Hyperliquid HyperCore atomically at trade time:

- Hyperliquid's protocol share (50% of the user-paid fee under the HIP-3 default split with `deployerFeeScale = 1.0`), routed to the Assistance Fund and HLP
- Voluntary discounts and builder fees routed to third-party defi builders and referrers via the HyperCore builder-codes mechanism

Both flow to counterparties other than Paragon before the deployer is credited, which is the qualifying test for supply-side classification on a derivatives exchange.

## 2. Data sources

- **Derived**: `fees − revenue`. Computed directly from the two adjacent metrics in this project.

## 3. Step-by-step calculation

### Component A: Component decomposition

- **Purpose**: Surface the two adjacent metrics as positive and negative contributors
- **Logic**: Daily rows from `paragonperps_metrics_fees` (positive) and `paragonperps_metrics_revenue` (negative) are unioned. Both inputs are already daily-grain, USD-denominated, and zero-filled across the date spine.

### Component B: Daily aggregation

- **Purpose**: Reduce to one row per day per chain and product
- **Logic**: The unioned components are summed by `(timestamp, timestamp_grain, chain_id, product_id)`. The result equals `fees − revenue` by construction and holds the P&L identity `fees = revenue + fees_supply_side` to the cent.

### Component C: Daily normalization

- **Purpose**: Standard schema, zero-fill for days without trading
- **Logic**: `fill_zeros` populates any date-spine day without trading. Values are USD-equivalent (USDC throughout the underlying fee stream).

## 4. What this bucket includes vs excludes

Includes: Hyperliquid's atomic 50% share (routed to AF and HLP) and voluntary builder/referral payments routed to third-party defi builders.

Excludes: Paragon's own realized take (that is `revenue`).

The two components are not separated because both share the same accounting treatment: paid atomically before the deployer is credited, routed to counterparties that provide distinct services (matching engine for HL, order routing for builders). Separating them would require splitting the `node_fills.fee − deployer_fee` residual using on-chain `builder_fee` plus an inferred Hyperliquid share, which is not maintained here.

*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

Derivative markets

Paragon earns a deployer share of trading fees on the perpetual markets it has deployed under Hyperliquid's HIP-3 framework. Markets execute on Hyperliquid's HyperCore L1 order book; it does not operate its own matching engine. The default HIP-3 fee split allocates 50% of each user-paid fee to Hyperliquid and 50% to the deployer; deployerFeeScale is 1.0, so the standard split applies.

Paragon offers USDC-settled perpetual contracts on crypto index and basket products (BTC dominance, TOTAL2, OTHERS) and AVGO. All 4 markets are deployed under the HIP-3 `para` namespace and execute on Hyperliquid's HyperCore order book.

Paragon is a HIP-3 (builder-deployed perpetuals) deployer on Hyperliquid, deployed by wallet 0x8888888c43cbb7e1c4132542e46831bffd866ed3. Paragon is operated as a private company; no token has been issued.

BTCD PerpetualBTCD

Supply-side fees

Supply-side fees