# Pendle Yield Tokenization Supply-side fees Methodology

## 1. Overview

The share of fees that goes to the service providers is measured by supply-side fees. For Pendle Yield Tokenization, this metric is zero. All fees generated by the product—including interest fees, reward fees, and Boros market transaction fees—are captured entirely as protocol revenue. Consequently, no fee share is allocated to external supply-side participants or service providers for this specific product.

## 2. Data sources

- **None**: This metric is set to a constant value and does not consume blockchain events

## 3. Step-by-step calculation

Supply-side fees for Pendle Yield Tokenization is hardcoded to zero. This value is maintained because 100% of the fees collected from yield tokenization activities and Boros markets are categorized as protocol revenue. Specifically, interest fees and reward fees collected from `YT` contracts are categorized entirely as revenue, with no portion allocated to supply-side participants. A zero value is returned for the metric due to the absence of a fee-sharing mechanism for service providers within the product's logic.

*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 deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

PENDLE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

Pendle Yield Tokenization

Supply-side fees

Supply-side fees

Chain breakdown