Liquidity providers deposit funds into Bancor and receive trading fees from traders (supply-side fees).

Bancor is a non-custodial exchange protocol built on Ethereum. Bancor was founded by Galia Benartzi, Guy Benartzi, Eyal Hertzog, & Yudi Levi and launched in 2016.

BNT tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Bancor's investors include DeFiance Capital, ParaFi Capital, Mechanism Capital, etc.

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Bancor

# Bancor Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Bancor protocol. The metric is calculated by dividing daily protocol revenue by the number of daily active users (DAU). This provides insight into the revenue efficiency and user monetization of the Bancor decentralized exchange platform across its v2.1 and v3 versions on Ethereum.

## 2. Data sources

- **Ethereum transaction records**: Transaction data containing sender addresses (`from_address`) to identify users who initiated trades
- **Parsed Bancor trading events**: Two types of events from different protocol versions:
  - `BancorNetwork_TokensTraded_event` from Bancor v2.1 contracts
  - `Converter_Conversion_event` from Bancor v3 contracts
- **Parsed Bancor fee events**: The same trading events but capturing fee amounts paid during swaps
- **Protocol fee tier events**: 
  - `NetworkSettings21_NetworkFeeUpdated_event` for v2.1 fee updates
  - `PoolCollection_NetworkFeePPMUpdated_event` for v3 fee updates
- **End-of-day token price feeds**: USD prices for fee tokens to enable currency conversion
- **Token metadata**: Token symbols and decimal places for proper amount scaling

## 3. Step-by-step calculation

### Component A: Daily active users calculation

- **Purpose**: Count unique users who performed trades on Bancor each day
- **Logic**: Trading events are joined with Ethereum transaction records to identify the user who initiated each swap transaction. Users are identified by the `from_address` field from the underlying Ethereum transaction. Events are filtered to include data from June 16, 2020 onwards (protocol launch). Native ETH token addresses (0xeeee...) are standardized to WETH addresses for consistency. Users are classified as 'Trader' type and aggregated by day using HyperLogLog for efficient distinct counting across multiple dimensions
- **Key fields**: `user_address` (transaction initiator), `block_timestamp` (for daily aggregation), `chain` (Ethereum), transaction identifiers for deduplication

### Component B: Revenue calculation

- **Purpose**: Calculate daily protocol revenue from trading fees collected by Bancor
- **Logic**: Fee collection events are processed to extract fee amounts paid during swaps. Fee amounts are corrected for token decimals by dividing by 10^decimals using token metadata. The corrected amounts are converted to USD using end-of-day price feeds. Protocol fee tiers are applied to determine the protocol's share of total fees - this involves joining with fee tier update events that track changes in protocol fee percentages over time. Fee tiers are expressed as parts per million (PPM) and divided by 10^6 to get percentage values. The final revenue represents only the portion collected by the protocol, not the total fees paid by users
- **Key fields**: `amount` (fee amount in native tokens), `token1_address` (fee token), `protocol_fee_tier` (protocol's share percentage), USD prices for conversion

### Component C: Protocol fee tier tracking

- **Purpose**: Track changes in protocol fee percentages over time
- **Logic**: Fee tier update events from both protocol versions are processed to extract new fee percentage values. The data includes a default starting point of 0% fees at protocol launch (June 16, 2020). Fee values are converted from parts per million to decimal percentages. Missing days are forward-filled to ensure continuous fee tier data, as fee tiers remain constant until explicitly updated
- **Key fields**: `newNetworkFee` (v2.1), `newFeePPM` (v3), `block_timestamp` for change tracking

### Final aggregation

- **Combining components**: Daily revenue and daily active user counts are calculated independently and then combined at the daily aggregation level. Revenue values are summed by day, while user counts use HyperLogLog merge operations for accurate distinct counting across different dimensional breakdowns
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds matched by timestamp, token address, and chain. Conversion happens after decimal correction but before protocol fee tier application
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation. The calculation covers the period from protocol launch (June 16, 2020) to present
- **Final calculation**: ARPU is calculated by dividing daily protocol revenue (in USD) by daily active users count. Days with zero users result in zero ARPU values rather than division errors. Missing days are filled with zeros to ensure continuous time series data

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

BancorBNT

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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