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 Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of fees earned by liquidity suppliers (lenders) in the ZeroLend protocol. This metric captures fees from two sources: interest earned on loans (the primary revenue stream) and flash loan premiums. The calculation applies protocol-specific revenue sharing logic to determine what portion of total fees flows to suppliers versus protocol reserves.

## 2. Data sources

- **Lending interest data**: Treasury accruals state data tracking cumulative interest earned by ZeroLend protocol accounts
- **Treasury mint events**: Parsed `MintedToTreasury` events from ZeroLend lending pools across Ethereum, Blast, Manta, zkSync Era, Base, and Linea chains, capturing direct protocol token minting
- **Flash loan events**: Parsed `FlashLoan` events from ZeroLend lending pools, capturing premium amounts paid by flash loan borrowers
- **Reserve factor events**: Parsed `ReserveFactorChanged` events from ZeroLend pool configurators, providing the ratios used to split revenue between suppliers and protocol reserves
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal standardization

## 3. Step-by-step calculation

### Component A: Interest-based supply-side fees
- **Purpose**: Calculate the portion of lending interest that flows to liquidity suppliers
- **Logic**: Start with treasury accruals state data that tracks cumulative interest earned by protocol accounts across all supported chains. Combine this with cumulative treasury mints from `MintedToTreasury` events to get total cumulative interest amounts. Use lag functions to calculate daily changes in cumulative interest, representing daily revenue. Join with reserve factor data from `ReserveFactorChanged` events, using fill-forward logic to handle sparse updates. Apply the reserve factor formula to split daily revenue: `daily_revenue / reserve_factor * (1 - reserve_factor)`, where the reserve factor represents the protocol's share, and suppliers receive the remainder.
- **Key fields**: `treasury_accruals` (cumulative interest from state data), `amount` (treasury mints), `reserve_factor` (protocol's revenue share ratio), `fees_supply_side` (calculated supplier portion)

### Component B: Flash loan supply-side fees  
- **Purpose**: Calculate the portion of flash loan premiums that flows to liquidity suppliers
- **Logic**: Extract flash loan events from multiple ZeroLend pool contracts across six chains (Ethereum, Blast, Manta, zkSync Era, Base, Linea). Capture the `premium` field representing fees paid by flash loan borrowers. Apply a hardcoded revenue split where suppliers receive 99.96% of flash loan fees, calculated as `amount - (amount * 0.0004)`, meaning the protocol retains 0.04% of flash loan premiums.
- **Key fields**: `premium` (flash loan fee amount), `amount` (calculated supplier portion after protocol split)

### Final aggregation
- **Combining components**: Union the interest-based and flash loan supply-side fees at daily granularity, combining data from both revenue streams into a single dataset
- **Currency conversion**: Apply USD conversion using end-of-day token prices and correct for token decimals through standard macros
- **Time aggregation**: Aggregate all data to daily boundaries using timestamp truncation, ensuring consistent daily reporting across both fee sources
- **Final calculation**: Sum the USD-converted supply-side fees from both interest and flash loan sources, representing the total daily fees earned by liquidity suppliers in the ZeroLend protocol

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

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

ZeroLendZERO

Supply-side fees

Supply-side fees

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