# Thena Fusion Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of trading fees generated on Thena Fusion that is distributed to liquidity providers. This metric reflects the earnings of service providers who contribute capital to the automated market maker (AMM) pools. For Thena Fusion, this specifically accounts for the net fees remaining after protocol-level revenue shares and rewards for NFT holders are deducted from the total fees generated by trading activity.

## 2. Data sources

- **Blockchain events**: `Swap`, `Fee`, and `CommunityFee` events from `AlgebraPool` contracts, and `Pool` events from `AlgebraFactory` contracts, covering BNB Chain and opBNB
- **External data**: End-of-day price feeds for the underlying assets in the liquidity pools

## 3. Step-by-step calculation

### Component A: Trading volume and fee tier identification

- **Purpose**: Calculate the total swap volume and applicable fee rates for each liquidity pool as the base for fee generation.
- **Logic**: `Swap` events from `AlgebraPool` contracts are parsed to determine the trading volume for each transaction. Trading pairs and asset metadata are identified using `Pool` events from `AlgebraFactory` contracts. The active fee tier for each pool is extracted from `Fee` events emitted by `AlgebraPool` contracts, representing the total percentage charged to users. Volume is calculated using the lesser USD value of the two swapped assets to mitigate the impact of price manipulation.
- **Key fields**: `token0_amount`, `token1_amount`, `fee_tier`, `account_address`

### Component B: Protocol and community fee tracking

- **Purpose**: Identify the portions of fees allocated to the protocol and community participants which must be excluded from supply-side earnings.
- **Logic**: `CommunityFee` events from `AlgebraPool` contracts are monitored to determine the protocol's share of the total fees. These values are used to calculate the protocol fee tier, which represents the percentage of trading fees diverted from liquidity providers to the protocol treasury.
- **Key fields**: `communityFee0New`, `communityFee1New`, `protocol_fee_tier`

### Component C: Supply-side fee distribution

- **Purpose**: Aggregate total fees and deduct non-provider allocations to determine the final share for liquidity providers.
- **Logic**: Total fees are initially calculated by multiplying trading volume by the active fee tier. From this total, protocol revenue (calculated as `trading_volume * protocol_fee_tier`) is subtracted. Additionally, the share allocated to NFT holders is deducted by applying a specific rate (0.3 or 0.22 depending on the timestamp) to the difference between the total fee tier and the protocol fee tier. The remaining value constitutes the supply-side fees.
- **Key fields**: `trading_volume`, `fee_tier`, `protocol_fee_tier`, `nft_rate`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize fee values and convert them into a standardized USD value for reporting.
- **Logic**: Asset amounts are normalized by their respective decimal precision. These normalized values are then multiplied by end-of-day price feeds for the specific assets. All data is aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `timestamp`, `price_usd`, `decimals`

*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

Exchanges (DEX)

Liquidity providers deposit funds into Thena and stake their LP tokens to receive THE tokens (token incentives).

Thena is a non-custodial exchange protocol built on BNB Chain. Thena was founded by an anonymous team and launched in 2023.

THE tokenholders own and govern the protocol. They vote for pools where they wish to receive trading fees and external bribes from, while pools receive THE emissions in respect to their share of votes.

Thena Fusion

Archived

Supply-side fees

Supply-side fees

Chain breakdown