Supply-Side Revenue
The share of user fees that goes to the participants providing the service, such as liquidity providers, lenders, validators, or miners.
Every fee-generating protocol has suppliers who must be paid for the resource they contribute: capital in an automated market maker or lending pool, and computation and stake on a blockchain. Supply-side revenue is that payment, and it is closer to a cost of goods sold than to profit. It is the counterpart to protocol revenue, and in most dashboards the two sum to total fees. Reading it correctly prevents the most common overstatement in digital-asset analysis, since headline fee figures are frequently quoted as though the protocol earned all of them. Cutting the supply-side share, for example by enabling a fee switch, can also reduce the supply of capital that made the fees possible.
In der Praxis
On an automated market maker, the swap fee that accrues to liquidity providers is supply-side revenue, not income available to the protocol's treasury.
Das häufige Missverständnis
Supply-side revenue is often the largest part of a headline fee number, so quoting total fees as protocol income can overstate what reaches a treasury by a wide margin.
Die Zahl, der dies entspricht
The part of fees paid to the parties supplying the service: liquidity providers, validators, or miners.
Limits: This is gross income to suppliers, never their profit: it excludes impermanent loss and adverse selection for liquidity providers, energy and hardware costs for miners, and operator commission and slashing penalties for validators, so a pool can post strong supply-side revenue in a month when its…