# Supply-side fees Methodology

## Overview

share of fees that goes to the service providers.

## Data sources

- Smart contract events and program instructions capturing fee-generating activities
- Block-level fee data and transaction metadata
- Token price feeds for USD conversion
- Token metadata for decimal precision

## Common calculation approaches

### Smart contract fee extraction
For decentralized exchanges and lending protocols, supply-side fees are calculated by extracting fee-related data directly from smart contract events and program instructions. For example, swap fees are derived from `Swap` events from Uniswap pools and swap instructions from Meteora programs on Solana, while interest-based fees are captured from `ReserveDataUpdated` events from Aave contracts. These raw amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.

### Revenue-split deduction
For liquid staking platforms and certain automated market makers, supply-side fees are determined by applying a distribution split to total fees or by subtracting protocol revenue from total fees. In the case of Lido Finance, supply-side fees are calculated as a fixed percentage of total staking rewards, representing the portion distributed to node operators. Similarly, for Uniswap, the supply-side portion is derived by subtracting the protocol revenue retained by the treasury from the total fees generated by trading activity.

### Transaction fee allocation
For blockchain networks, supply-side fees are defined as the portion of transaction fees distributed to validators for securing the network. On Solana, these fees are calculated by aggregating block-level fee data and subtracting the portion of transaction fees that is permanently burned. The remaining net compensation is then converted to USD using end-of-day price feeds.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

*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

Derivative exchanges

Omni charges zero explicit trading fees; the user's cost is the bid-ask spread OLP quotes. Variational's revenue is a share of that spread, swept from settlement pools into a protocol treasury wallet, with the remainder retained by OLP.

Users request a quote and OLP, Variational's in-house market maker, is the sole counterparty on Omni; trades are priced, agreed, and booked off-chain, with the chain holding only USDC collateral. Each user is deployed a bilateral settlement pool by a factory contract, and every state-changing function is oracle-gated, so an off-chain operator drives settlement.

Variational is an RFQ perpetuals venue on Arbitrum. Its consumer app, Omni, lets users trade perpetual futures against the protocol's own market maker, OLP.

Variational Omni

Supply-side fees

Supply-side fees