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

Aave is a non-custodial lending protocol built on Ethereum and other adjacent blockchains. Aave was founded by Stani Kulechov and launched in 2017.

AAVE tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Aave’s investors include ParaFi Capital, Framework Ventures, Three Arrows Capital, etc.

governance

github

twitter

discord

etherscan

website

Lending

Aave

Aave | Data breakdown

# Aave Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) is defined as the daily revenue generated per active user over a fixed 24-hour window. The monetization efficiency of individual user interactions is reflected by this metric across various lending and borrowing deployments, including Aave V2, Aave V3, and Aave V4. Daily revenue contributions from specialized integrations, such as Aave GHO (Ethereum), Chainlink SVR, and Velora positive slippage, are also incorporated into the calculation. By dividing total daily revenue by the number of active users (daily), a standardized measure of user-level monetization is provided for institutional analysis.

## 2. Data sources

- **Revenue**: Derived from the Revenue metric, covering Ethereum, Arbitrum, Avalanche, Base, and 13 other chains
- **Active users (daily)**: Derived from the Active users (daily) metric, covering Ethereum, Arbitrum, Avalanche, Base, and 13 other chains

## 3. Step-by-step calculation

### Component A: Daily revenue aggregation

- **Purpose**: All protocol revenue streams are aggregated.
- **Logic**: Daily revenue is aggregated across all active deployments (Aave V2, Aave V3, and Aave V4) and products. Interest revenue, flash loan fees, liquidation protocol fees, GHO stability module fees, Chainlink SVR distributions, and Velora positive slippage revenue are included in this aggregation. Interest revenue is calculated using daily changes in the variable borrow index, which is updated via `ReserveDataUpdated` events from `LendingPool` contracts, multiplied by the outstanding debt balance. Flash loan fees are captured from premium payments recorded in `FlashLoan` events from `LendingPool` contracts. Liquidation protocol fees are determined by applying the liquidation factor to the liquidated collateral, which is tracked via `LiquidationCall` events from `LendingPool` and `Spoke` contracts. All revenue amounts are normalized by decimal precision and converted to USD using end-of-day asset prices.
- **Key fields**: `block_timestamp` (timing), `amount` (revenue quantities), `token_address` (asset identification)

### Component B: Daily active user tracking

- **Purpose**: Daily unique active users interacting with the protocol are tracked.
- **Logic**: active users (daily) are tracked by identifying unique addresses participating in protocol transactions. Depositing (supplying), withdrawing, borrowing, repaying, initiating flash loans, executing liquidations, and being liquidated are classified as active user interactions. Transactions are parsed from `Supply` (or `Deposit`), `Withdraw`, `Borrow`, `Repay`, `FlashLoan`, and `LiquidationCall` events from `LendingPool` and `Spoke` contracts across all supported chains. The daily count of unique addresses is aggregated to establish the active users (daily) metric.
- **Key fields**: `block_timestamp` (timing), `user_address` (user identification)

### Component C: Average revenue per user calculation

- **Purpose**: The final ARPU metric is calculated.
- **Logic**: The average revenue per user is calculated on a daily basis. The total daily revenue (Component A) is divided by the active users (daily) (Component B) for each 24-hour window. If no active users or revenue are recorded for a given day, the metric is filled with zero.
- **Key fields**: `timestamp` (timing), `revenue` (daily revenue), `user_dau` (active users (daily))

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

AaveAAVE

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape