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

ZeroLend is a non-custodial lending protocol built on Ethereum and other adjacent blockchains.

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

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ZeroLend

# ZeroLend Fees Methodology

## 1. Overview

ZeroLend fees represent the total daily fee revenue generated by the ZeroLend lending protocol across multiple blockchain networks. This metric combines two distinct revenue streams: interest-based fees from lending operations (split between protocol revenue and supply-side fees paid to liquidity providers) and flash loan premium fees. The calculation aggregates fees from all supported chains (Ethereum, Blast, Manta, zkSyncEra, Base, and Linea) and converts them to USD for standardized reporting.

## 2. Data sources

The calculation relies on several blockchain data sources:
- **ZeroLend event logs**: Parsed `FlashLoan`, `MintedToTreasury`, and `ReserveFactorChanged` events from ZeroLend lending pool contracts across Ethereum, Blast, Manta, zkSyncEra, Base, and Linea networks
- **Treasury accrual state data**: Daily snapshots of accumulated interest in ZeroLend treasury accounts by token and chain
- **Token metadata**: Token contract information including decimal places for proper normalization
- **End-of-day price feeds**: Daily USD prices for all tokens to enable currency conversion

## 3. Step-by-step calculation

### Component A: Interest-based fees calculation
- **Purpose**: Calculate daily fees generated from lending interest, split between protocol revenue and supply-side fees
- **Logic**: Extract treasury accrual data showing cumulative interest earned by the protocol, add any treasury mints (direct token minting to treasury), then calculate daily changes using lag functions to determine incremental revenue. Join with reserve factor data to split total revenue between protocol portion (revenue) and supply-side portion (fees paid to liquidity providers) using the formula: supply-side fees = daily revenue ÷ reserve factor × (1 - reserve factor)
- **Key fields**: `treasury_accruals` (cumulative interest), `amount` (treasury mints), `daily_revenue` (calculated difference), `reserve_factor` (fee split ratio), `fees_supply_side` (calculated supply-side portion)

### Component B: Reserve factor management  
- **Purpose**: Track and maintain the fee split ratios used to divide revenue between protocol and liquidity providers
- **Logic**: Parse `ReserveFactorChanged` events to capture updates to reserve factors, normalize values by dividing by 10,000, then fill forward daily to ensure continuous coverage for all token-chain combinations
- **Key fields**: `newReserveFactor` (from events), `reserve_factor` (normalized ratio), `timestamp` (daily boundaries)

### Component C: Treasury mint tracking
- **Purpose**: Track direct token minting to treasury accounts as part of interest accrual
- **Logic**: Parse `MintedToTreasury` events to capture direct token minting, aggregate by day and token, then calculate cumulative amounts over time using window functions
- **Key fields**: `amountMinted` (mint amounts), `reserve` (token address), `amount` (cumulative mints)

### Component D: Flash loan fees
- **Purpose**: Calculate fees collected from flash loan operations
- **Logic**: Parse `FlashLoan` events from all lending pools across supported chains, extract the premium amount charged for each flash loan, and aggregate by day and token
- **Key fields**: `premium` (fee amount), `asset` (token address), `amount` (aggregated daily fees)

### Final aggregation
- **Combining components**: Union the interest-based fees (sum of protocol revenue and supply-side fees) with flash loan premium fees, both aggregated to daily timestamp boundaries by token and chain
- **Currency conversion**: Apply token decimal corrections and convert to USD using end-of-day price feeds, ensuring proper normalization across different token types
- **Time aggregation**: Group by daily timestamps with consistent time zone handling across all chains
- **Final calculation**: Sum all fee components (interest revenue + supply-side fees + flash loan premiums) by day, convert to USD, and apply zero-fill strategy to ensure continuous daily coverage across the supported time range

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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