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 Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of fees that Solv protocol distributes to liquidity providers and vault participants, excluding the protocol's own revenue share. The metric is calculated by subtracting protocol revenue from total fees collected across four fee streams: pool performance fees, collaboration fees, redemption fees, and subscription fees. This metric answers the question: "How much value does Solv protocol distribute to its supply-side participants?"

## 2. Data sources

- **Blockchain events**: Parsed `OpenFundMarket_Subscribe` events from Ethereum, Arbitrum, Base, Avalanche, Berachain, Ink, and Linea networks
- **Token transfer data**: Token transfer events across multiple blockchains including Ethereum, Arbitrum, BSC, Base, Avalanche, Berachain, Ink, Sonic, ZKSync Era, HyperEVM, and Linea
- **Oracle data**: Daily NAV (Net Asset Value) data from Solv protocol oracles providing asset valuations
- **Protocol state data**: Daily share value snapshots from Solv protocol contracts
- **Configuration data**: Vault configuration data from Solv API including fee collection addresses, revenue sharing ratios, and subscription fee settings
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimal specifications

## 3. Step-by-step calculation

### Component A: Pool performance fees
- **Purpose**: Captures fees generated from positive changes in vault Net Asset Values
- **Logic**: Daily NAV values are compared using lag functions to identify positive changes. These NAV increases are multiplied by corresponding share values (normalized by dividing by 1e18) to calculate base pool fees. The fees are then adjusted using revenue ratios where total pool fees equal base fees divided by (1 - revenue ratio). Protocol revenue is calculated as total fees multiplied by the revenue ratio, while supply-side fees represent the remainder.
- **Key fields**: `native_asset_value` from oracle data, `share_value` from protocol state, `revenue_ratio` from vault configuration, `nav_change` calculated as current minus previous NAV

### Component B: Collaboration fees  
- **Purpose**: Captures fees from collaboration partnerships where tokens are deposited to designated addresses
- **Logic**: Vault configurations specify collaboration fee collection addresses and token contracts. Token transfer events are filtered to identify transfers to these designated addresses within valid time periods defined by vault configuration timestamps. The full transfer amount represents total fees, while protocol revenue is calculated by multiplying the transfer amount by the vault's revenue ratio.
- **Key fields**: `receive_address` and token contracts from vault config, `value` from token transfers, `revenue_ratio` for protocol share calculation

### Component C: Redemption fees
- **Purpose**: Captures fees collected when users redeem vault shares
- **Logic**: Similar to collaboration fees, vault configurations specify redemption fee collection addresses. Token transfers to these addresses are identified and filtered by time periods. The full transfer amount represents fees collected from redemptions. All redemption fees are treated as protocol revenue.
- **Key fields**: `redemption_address` from vault config, `value` from token transfers to redemption addresses

### Component D: Subscription fees
- **Purpose**: Captures fees collected when users subscribe to vault shares
- **Logic**: `OpenFundMarket_Subscribe` events are filtered for vaults where subscription fees are enabled. The subscription amount is adjusted using the formula: subscription amount × (NAV - 10^decimals) ÷ 1e18, where the adjustment represents the premium above base token value. This calculation accounts for the NAV oracle pricing versus the underlying token decimals. All subscription fees are treated as protocol revenue.
- **Key fields**: `value` from Subscribe events, `native_asset_value` from NAV oracles, token `decimals` for adjustment calculation

### Final aggregation
- **Combining components**: All fee components are unioned together and aggregated by day, chain, and token. Pool fees use timestamp directly while event-based fees use block timestamp truncated to day boundaries
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds and normalized for token decimals using the `convert_to_usd_and_correct_decimals` function
- **Time aggregation**: Data is aggregated to daily grain with a cutoff date of September 1, 2025, filtering out earlier data
- **Final calculation**: Supply-side fees = Total fees - Protocol revenue. Total fees include all four components, while protocol revenue includes the revenue ratio portion of pool fees, collaboration fees, and the full amounts of redemption and subscription fees. The result represents the net fees distributed to supply-side participants.

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

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

Solv ProtocolSOLV

Supply-side fees

Supply-side fees

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