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SSV Network

# SSV Network Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the total fees accrued by operators (service providers) on SSV Network for running validators. These fees are paid by validator owners to compensate operators for maintaining the decentralized validator infrastructure. This metric is used to evaluate the economic incentives and total earnings of the supply-side participants within the network. Fees are denominated in SSV assets prior to the network upgrade and in ETH assets after the upgrade.

## 2. Data sources

- **Blockchain events**: `ClusterLiquidated`, `ClusterReactivated`, `ClusterMigratedToETH`, `OperatorAdded`, `OperatorFeeExecuted`, `OperatorRemoved`, `ValidatorAdded`, `ValidatorRemoved`, `ValidatorExited`, and `NetworkFeeUpdated` events from `SSVNetwork` contracts, covering Ethereum
- **External data**: End-of-day price feeds for SSV and ETH assets

## 3. Step-by-step calculation

### Component A: Active validator tracking

- **Purpose**: Track the number of active, fee-accruing validators assigned to each operator.
- **Logic**: Validator additions and removals are parsed from `ValidatorAdded` and `ValidatorRemoved` events from `SSVNetwork` contracts. Cluster state changes are tracked using `ClusterLiquidated`, `ClusterReactivated`, and `ClusterMigratedToETH` events from `SSVNetwork` contracts. A validator is considered to be accruing fees from its addition in an active cluster until its removal, while liquidation events temporarily halt accrual for all validators in the affected cluster until reactivation. At the network upgrade block, fee accrual is paused for all clusters until they perform a migration to ETH.
- **Key fields**: `owner`, `operator_ids`, `validator_count`, `cluster_active`, `block_number`

### Component B: Operator fee tracking

- **Purpose**: Determine the fee rate charged by each operator per block.
- **Logic**: Operator fee rates are extracted from `OperatorAdded`, `OperatorFeeExecuted`, and `OperatorRemoved` events from `SSVNetwork` contracts. Prior to the network upgrade block, fees are denominated in SSV assets. At the network upgrade block, any operator with a non-zero fee is reset to a default migrated operator fee denominated in ETH. Post-upgrade fee changes are tracked using the same operator events but are denominated in ETH.
- **Key fields**: `operator_id`, `fee`, `block_number`

### Component C: Daily fee accrual and USD conversion

- **Purpose**: Calculate the daily supply-side fees in USD.
- **Logic**: For each day and operator, the number of active validators is multiplied by the operator's active fee rate and the number of blocks per day. The total accrued fees are aggregated across all operators. Prior to the network upgrade block, fees are denominated in SSV assets, and post-upgrade fees are denominated in ETH assets. The daily fee amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `operator_fees`, `token_address`, `timestamp`

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

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

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Supply-side fees

Supply-side fees

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