# Spark Liquidity Layer Supply-side fees Methodology

## 1. Overview

The share of fees that goes to the service providers is measured by the Supply-side fees metric. For Spark Liquidity Layer, this metric is set to zero. Spark Liquidity Layer is designed as a strategic allocator of protocol-aligned capital across various external venues. Because external depositors or liquidity providers are not directly utilized to supply capital to this layer, no supply-side fees are distributed, and all generated yield is classified as protocol revenue.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Supply-side fee assignment

- **Purpose**: The assignment of the supply-side fee value for Spark Liquidity Layer
- **Logic**: A constant value of zero is assigned to the supply-side fees for all daily intervals. This reflects that no interest or fees are distributed to external depositors within the Spark Liquidity Layer.

*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

Asset management

Lenders deposit funds into Spark and receive interest payments from borrowers (supply-side fees).

Spark is a non-custodial lending protocol built on Ethereum. Spark’s development team Phoenix Labs was founded in early 2023.

SPK tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

Spark Liquidity Layer

Supply-side fees

Supply-side fees

Chain breakdown