Overcollateralized borrowers deposit funds into Abracadabra and receive MIM stablecoin.

Abracadabra is a non-custodial stablecoin protocol built on Ethereum and other adjacent blockchains. Abracadabra was founded by Daniele Sestagalli and launched in 2021.

SPELL tokenholders own and govern the protocol. Currently, the interest and borrowing fees paid by borrowers (revenue) are shared between tokenholders and the project treasury.

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Abracadabra.money

# Abracadabra.money Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average daily fee revenue generated per active user on the Abracadabra protocol. This metric answers the question "How much fee revenue does each user generate on average per day?" by dividing total daily fees by the number of unique daily active users. The calculation combines fees from multiple revenue streams including borrowing fees, interest accruals, and cross-chain bridging fees across Abracadabra's multi-chain ecosystem.

## 2. Data sources

The AFPU calculation draws from several blockchain and external data sources:

- **Borrowing and lending events**: Parsed `LogBorrow`, `LogRepay`, and `LogAccrue` events from Abracadabra Cauldron contracts deployed on Ethereum, Arbitrum, Avalanche, BSC, and Fantom
- **Cross-chain bridging events**: Parsed LayerZero OFT (Omnichain Fungible Token) `SendToChain` events from multiple chains including Ethereum, Base, Arbitrum, Avalanche, BSC, Fantom, and Polygon
- **Fee collection events**: Parsed `LogFeeCollected` events from Base LzOFTV2FeeHandler contracts for beam v2 operations
- **Native token flows**: Transaction-level native token transfer data filtered to specific Abracadabra beam contract addresses
- **Token transfer events**: Parsed `Transfer` events used to identify actual users behind wrapper contract interactions
- **External price feeds**: End-of-day token price data for USD conversion
- **Token metadata**: Decimal places and contract addresses for accurate fee calculations
- **Protocol configuration**: Hardcoded pool fee tier data sourced from Abracadabra's analytics API

## 3. Step-by-step calculation

### Component A: Borrowing fees
- **Purpose**: Calculate fees generated from MIM token borrowing against collateral
- **Logic**: Extract borrowing events from Cauldron `LogBorrow` events across five chains (Ethereum, Arbitrum, Avalanche, BSC, Fantom). Match each borrowing transaction to its corresponding pool configuration to apply the appropriate fee tier. Calculate borrowing fees by multiplying the borrowed amount by the pool's `borrow_fee_tier` percentage. All borrowing fees are attributed to Ethereum chain for accurate USD price conversion since MIM token pricing is most reliable on Ethereum.
- **Key fields**: `amount` (borrowed MIM amount), `pool_address` (identifies the specific lending pool), `borrow_fee_tier` (percentage fee applied to borrows)

### Component B: Interest accrual fees
- **Purpose**: Capture interest fees accumulated on outstanding loans
- **Logic**: Process `LogAccrue` events from Cauldron contracts that record periodic interest calculations on existing loans. Extract the accrued interest amount directly from the `accruedAmount` field. These represent ongoing fees earned from borrowers as their debt compounds over time. Like borrowing fees, interest fees are attributed to Ethereum for price conversion consistency.
- **Key fields**: `accruedAmount` (interest amount accrued in MIM tokens), `pool_address` (identifies the lending pool)

### Component C: Cross-chain bridge fees (beam v1)
- **Purpose**: Calculate fees from LayerZero-based cross-chain MIM transfers
- **Logic**: Identify bridging transactions by matching `SendToChain` events against a allowlist of Abracadabra beam transaction hashes. Extract native token flows to specific beam contract addresses (`0x287176dfbec7e8cee0f876fc7b52960ee1784adc` on most chains, `0xe1261e47b08a22df93af46889ee504c2aa6dfd4c` on Polygon). Filter for transactions that appear in the beam transaction allowlist to ensure only protocol-related bridge fees are captured. The native token amounts represent fees paid for cross-chain transfers.
- **Key fields**: `value` (native token amount representing bridge fee), `transaction_hash` (for matching against allowlist), `account_address` (beam contract receiving fees)

### Component D: Cross-chain bridge fees (beam v2)
- **Purpose**: Capture fees from updated LayerZero fee handler system
- **Logic**: Extract fees directly from `LogFeeCollected` events emitted by LzOFTV2FeeHandler contracts on Base chain. These events contain the fee amount in the `amount` field and use WETH (`0x4200000000000000000000000000000000000006`) as the fee token. This represents the newer implementation of cross-chain fee collection.
- **Key fields**: `amount` (fee amount in WETH), `token_address` (WETH contract address)

### Component E: Daily active user identification
- **Purpose**: Count unique users interacting with Abracadabra protocol daily
- **Logic**: Identify users from the same underlying events used for fee calculation. Extract user addresses from `LogBorrow` and `LogRepay` events using the `from` parameter. For LayerZero bridging events, identify the actual user by joining `SendToChain` events with token transfer events to find the original sender (since wrapper contracts are used). Apply HyperLogLog sketching to count distinct users across multiple dimensions (project-level, chain-level, user-type-level) while avoiding double-counting users who interact across multiple chains or event types.
- **Key fields**: `from` (user address from borrow/repay events), `from_address` (actual user behind wrapper contracts), `user_address` (standardized user identifier)

### Final aggregation
- **Combining components**: Sum all fee components (borrowing fees, interest fees, beam v1 fees, beam v2 fees) on a daily basis across all chains and pool types. Fees are aggregated by timestamp (truncated to daily boundaries), maintaining attribution to specific chains for proper price conversion.
- **Currency conversion**: Convert all fees to USD using end-of-day token prices, applying appropriate decimal corrections for each token type. Borrowing and interest fees use MIM token prices, beam v1 fees use native token prices for each chain, and beam v2 fees use WETH prices.
- **Time aggregation**: Truncate all timestamps to daily boundaries using `timestamp_trunc(block_timestamp, day)` to ensure consistent daily aggregation across all data sources.
- **Final calculation**: Divide the sum of daily fees in USD by the count of unique daily active users (extracted from HyperLogLog sketches) to produce AFPU. Apply zero-filling strategy for days with no activity to maintain continuous time series data.

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

Abracadabra.moneySPELL

Average fees per user (AFPU)

Average fees per user (AFPU)

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