# Morpho Vault Curation Fees Supply Side Methodology

## 1. Overview

Supply-side fees measures the total yield earned by depositors within Morpho Vault Curation after the deduction of curator performance fees. This metric represents the interest income and rewards successfully distributed to liquidity providers across various curated lending vaults managed by Steakhouse Financial. It serves as a key indicator of the net economic value generated for the supply-side participants of the Morpho infrastructure.

## 2. Data sources

- **Blockchain events**: `CreateMetaMorpho`, `CreateVaultV2`, and `CreateMorphoVaultV1Adapter` events from factory contracts, `SetCurator`, `SetFee`, `SetPerformanceFee`, `SetName`, and `SetSymbol` events from vault contracts, and on-chain state reads for total assets and total supply balances, covering Ethereum, Base, Arbitrum, Celo, and 12 other chains
- **External data**: End-of-day price feeds for underlying assets

## 3. Step-by-step calculation

### Component A: Morpho Vault Curation identification

- **Purpose**: To define the universe of vaults curated by Steakhouse Financial.
- **Logic**: Vault addresses are discovered by parsing `CreateMetaMorpho` and `CreateVaultV2` events from factory contracts. These vaults are filtered to only include those where the curator is set to a known Steakhouse Financial address via `SetCurator` events. Metadata including vault names and symbols for V2 vaults is identified from `SetName` and `SetSymbol` events. The underlying asset and decimal precision are identified for each vault to ensure accurate balance tracking.

### Component B: Performance fee rate extraction

- **Purpose**: To determine the proportion of yield retained by the curator versus the portion distributed to depositors.
- **Logic**: Performance fee rates are extracted from `SetFee` and `SetPerformanceFee` events emitted by the vault contracts. These rates are normalized by decimal precision and used to calculate the split between protocol revenue and supply-side distributions. In instances where multiple fee updates occur, the latest deterministic fee rate is applied to the corresponding time period.

### Component C: Asset tracking and yield derivation

- **Purpose**: To calculate the total value managed and the organic growth of vault assets.
- **Logic**: Daily vault state data, specifically total assets and total supply, is retrieved for each identified vault. A daily share price is calculated as the ratio of total assets to total supply. The daily yield is then derived by calculating the percentage change in the share price relative to the previous day. `CreateMorphoVaultV1Adapter` events from factory contracts are utilized to identify and exclude super-vaults, ensuring that capital deposited into vaults via adapters is not double-counted.

### Component D: Supply-side fee calculation and USD normalization

- **Purpose**: To quantify the total value distributed to depositors in USD.
- **Logic**: The gross yield is reconstructed by adjusting the net daily yield by the performance fee rate, with negative yield values floored at zero. Supply-side fees are then calculated by applying the depositor's share (one minus the performance fee rate) to the gross yield multiplied by the total deposits in USD. All values are converted to USD using end-of-day price feeds for the underlying assets, with calculations performed at daily granularity using UTC day boundaries.

*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

Risk curators

Steakhouse earns performance fees on the yield generated within their curated vaults. Depositors supply capital to Steakhouse-curated vaults, which deploy it into selected lending markets. The curator fee is taken as a percentage of gross vault yield, with the remainder passed through to depositors as supply-side fees.

Steakhouse Financial operates as a risk curator, offering vault products across multiple DeFi lending protocols. They curate yield strategies for institutional and retail depositors, managing risk parameters, collateral selection, and allocation across vaults.

Steakhouse Financial is a blockchain-focused financial services company that provides institutional-grade DeFi infrastructure and advisory services for the emerging stablecoin economy.

Morpho Vault Curation

Supply-side fees

Supply-side fees

Chain breakdown