# Raydium Stable Swap Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of transaction fees generated by Raydium Stable Swap that is distributed to liquidity providers. This metric represents the compensation earned by service providers for facilitating low-slippage swaps between stablecoins and other pegged assets. For Raydium Stable Swap, the protocol currently allocates 100% of collected swap fees to the supply side, as the protocol fee switch is not active for this specific product.

## 2. Data sources

- **Blockchain events**: Swap instructions from the Raydium Stable Swap program, covering Solana
- **External data**: End-of-day price feeds for swapped assets and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Swap instruction parsing

- **Purpose**: Identify and extract swap activity specifically related to Raydium Stable Swap
- **Logic**: Instructions are filtered from the Solana DEX trade records where the executing account or outer executing account matches the Raydium Stable Swap program address. Base and quote asset amounts are captured along with their respective mint addresses and vault accounts. Transactions missing essential data, such as null amounts or empty mint addresses, are excluded from the dataset.

### Component B: Trading volume and fee rate application

- **Purpose**: Calculate the gross fees generated by swap activity
- **Logic**: Trading volume is determined by evaluating the USD value of both swap legs; the asset identified as a stablecoin (USDC, USDT) or SOL is prioritized, otherwise the leg with the lower USD value is used to prevent double-counting. A fixed trade fee rate of 0.0002 (0.02%) is applied to the resulting volume for all pools associated with the Raydium Stable Swap product.
- **Key fields**: `base_amount`, `quote_amount`, `trade_fee_rate`

### Component C: Supply-side fee allocation

- **Purpose**: Isolate the share of fees designated for liquidity providers
- **Logic**: Protocol and fund fee rates for Raydium Stable Swap are defined as zero. Supply-side fees are calculated by subtracting protocol revenue (calculated as volume multiplied by the sum of protocol and fund fee rates) from the total fees. Because the protocol-specific fee rates are zero, 100% of the gross fees are attributed to the supply side.

### Component D: USD normalization and aggregation

- **Purpose**: Convert native asset values into a standardized USD representation
- **Logic**: Asset amounts are normalized using decimal precision retrieved from asset metadata. These normalized values are multiplied by end-of-day price feeds. Daily totals are aggregated per asset and pool using UTC day boundaries, with a zero-filling strategy applied for days with no recorded activity.

*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)