Bitcoin holders deposit Bitcoin into Solv Protocol and receive yield from onchain strategies (supply-side fees).

Solv Protocol offers financial services for Bitcoin, including lending, liquid staking, yield generation, and fund management.

Solv Protocol team & investors own and govern the protocol. They currently take a cut of the total yield generated (revenue). Solv Protocol's investors include IOSG, Blockchain Capital, Binance Labs, etc.

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Solv Protocol

# Solv Protocol Fees Methodology

## 1. Overview

Solv fees represent the total fees generated by the Solv Protocol, which operates structured financial products (vaults) across multiple blockchain networks. The metric captures four distinct types of fees: pool fees derived from Net Asset Value (NAV) increases, collaboration fees from partner incentive programs, redemption fees from vault withdrawals, and subscription fees from vault deposits. The calculation combines on-chain transaction data with external vault configuration data to provide a comprehensive view of protocol fee generation.

## 2. Data sources

- **Blockchain events**: Parsed `OpenFundMarket_Subscribe` events from Ethereum, Arbitrum, Base, Avalanche, Berachain, Ink, and Linea capturing user subscription transactions
- **Token transfers**: Token transfer events across multiple chains including Ethereum, Arbitrum, Base, BSC, Avalanche, Berachain, Ink, Sonic, zkSync Era, HyperEVM, and Linea for tracking fee payments
- **External configuration**: Solv vault configuration data from external scraper API containing fee structures, designated addresses, revenue ratios, and vault metadata
- **State data**: Daily NAV (Net Asset Value) calculations and share value data from Solv's internal state management system
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimal precision and chain information

## 3. Step-by-step calculation

### Component A: Pool fees calculation
- **Purpose**: Calculate fees generated from increases in vault Net Asset Value (NAV)
- **Logic**: Daily NAV values are compared to previous day values to identify increases. Positive NAV changes are multiplied by the corresponding share values to determine gross fees. These amounts are then adjusted using vault-specific revenue ratios to separate protocol revenue from supply-side fees. The calculation uses the formula: `pool_fee = nav_increase * share_value / (1 - revenue_ratio)` where revenue ratio determines the protocol's portion
- **Key fields**: `native_asset_value` from NAV oracle data, `share_value` from vault state, `revenue_ratio` from vault configuration, `nav_change` calculated as current minus previous day NAV

### Component B: Collaboration fees tracking
- **Purpose**: Track fees from collaboration programs where partners deposit incentive tokens directly to designated addresses
- **Logic**: Token transfer events are filtered to identify transfers to addresses specified in vault configuration under `received_fee.address` arrays. Only transfers matching the configured token addresses in `received_fee.token` arrays are included. The full transfer amount is multiplied by the vault's revenue ratio to determine the protocol's portion. Time-based filtering ensures transfers are matched to the correct vault configuration period using timestamp ranges
- **Key fields**: `value` from token transfers, `receive_address` and `token_address` from vault configuration, `revenue_ratio` applied as multiplier, `block_timestamp` for daily aggregation

### Component C: Redemption fees tracking
- **Purpose**: Capture fees collected when users redeem (withdraw) from vaults
- **Logic**: Similar to collaboration fees, token transfer events are filtered to identify transfers to addresses specified in `redemption_fee.address` arrays for matching tokens in `redemption_fee.token` arrays. Unlike collaboration fees, no revenue ratio adjustment is applied as these represent direct fee collections. Time-based matching ensures transfers correspond to the correct vault configuration period
- **Key fields**: `value` from token transfers representing full redemption fee amounts, `redemption_address` and `token_address` from vault configuration

### Component D: Subscription fees calculation
- **Purpose**: Calculate fees from user subscriptions (deposits) to vaults
- **Logic**: `OpenFundMarket_Subscribe` events are parsed to extract subscription amounts and pool identifiers. Only vaults with `subscription_fee` set to true in configuration are included. The fee calculation uses a NAV-based formula: `fee = subscription_amount * (nav_value - 10^token_decimals) / 1e18`. This formula calculates the fee based on the NAV premium above the base token value. Events are first aggregated by day, then joined with corresponding daily NAV data and token metadata for the calculation
- **Key fields**: `value` from Subscribe events, `poolId` for vault identification, `currency` for token address, `native_asset_value` from NAV data, token `decimals` for precision

### Final aggregation
- **Combining components**: All four fee components are combined using UNION ALL operations, with each component contributing daily aggregated fee amounts by chain and token address
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds with automatic decimal correction based on token metadata
- **Time aggregation**: All components aggregate to daily granularity using `timestamp_trunc` to day boundaries, with `block_timestamp` converted to daily timestamps
- **Final calculation**: The sum of pool fees, collaboration fees, redemption fees, and subscription fees for each day, chain, and token combination, converted to USD and filtered to include only data from September 1, 2025 onwards. Missing data points are filled with zeros using the finalize metric strategy

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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