Stakers deposit funds into BENQI and receive a return on investment in the form of staking rewards (supply-side fees).

BENQI Liquid Staking is the liquid staking derivative business line of BENQI. BENQI was founded by an international team of software developers and launched in 2021.

BENQI tokenholders own and govern the BENQI protocol, including the BENQI Liquid Staking business line. They currently take a cut of the total staking rewards earned by the protocol (revenue). BENQI's investors include Dragonfly Capital, Mechanism Capital, Spartan, etc.

twitter

discord

etherscan

website

Liquid staking

BENQI Liquid Staking

# BENQI Liquid Staking Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) for BenQi Liquid Staking measures the daily average fee revenue generated per active user. This metric answers the business question "How much fee revenue does each active user generate on average?" by dividing total daily protocol fees by the number of daily active users. The calculation uses a liquid staking specific approach where protocol fees are derived from staker reward events, accounting for the fee structure where stakers receive 90% of rewards and the protocol/validators retain 10%.

## 2. Data sources

- **Blockchain events**: Parsed Avalanche blockchain events from BenQi's liquid staking contracts, specifically `Submitted`, `Redeem`, and `AccrueRewards` events
- **Transaction data**: Avalanche transaction logs containing event emissions from StakedAvax and StakedAvaxV2 contracts
- **External data**: End-of-day token price feeds for AVAX to USD conversion, and token metadata for decimal precision handling
- **Event types**: Deposit tracking through `Submitted` events, withdrawal tracking through `Redeem` events, and fee calculation through `AccrueRewards` events showing staker rewards

## 3. Step-by-step calculation

### Component A: Daily active user tracking
- **Purpose**: Identifies and counts unique users who interact with BenQi liquid staking daily
- **Logic**: Extracts user addresses from two event types on Avalanche: `Submitted` events (capturing deposits with `user` field identifying depositors) and `Redeem` events (capturing withdrawals with `user` field identifying withdrawers). Uses HyperLogLog (HLL) probabilistic data structure to efficiently count distinct users while maintaining accuracy. Aggregates users across multiple dimensions including project-level, chain-level, user-type-level, and product-level breakdowns. Applies daily timestamp truncation to establish consistent time boundaries.
- **Key fields**: `user` (user address from events), `block_timestamp` (for daily grouping), `user_type` (Depositor or Withdrawer), `chain` (Avalanche)

### Component B: Fee calculation from reward events
- **Purpose**: Calculates total protocol fees from staker reward accrual events
- **Logic**: Captures `AccrueRewards` events from two contract versions: StakedAvax contract using `value` field and StakedAvaxV2 contract using `userRewardAmount` field. These events represent the rewards distributed to stakers (90% of total rewards). Applies a critical transformation by multiplying reward amounts by 1/0.9 (approximately 1.111) to calculate total protocol fees, accounting for the protocol's fee structure where stakers receive 90% and the protocol/validators retain 10%. Converts amounts from native AVAX to USD using end-of-day price feeds and corrects for token decimal precision. Groups by daily timestamps to match user tracking timeframe.
- **Key fields**: `value` and `userRewardAmount` (reward amounts in native AVAX), `block_timestamp` (for daily aggregation), `token_address` (for price conversion)

### Final aggregation
- **Combining components**: Joins daily active user counts with daily fee totals using date as the common dimension. Both components are aggregated to the same daily grain and filtered for data availability.
- **Currency conversion**: Fee amounts are converted from native AVAX to USD using end-of-day price feeds, with proper decimal correction applied to handle token precision accurately.
- **Time aggregation**: Both user and fee data use daily timestamp truncation to create consistent time boundaries, ensuring proper alignment for the division calculation.
- **Final calculation**: Divides total daily fees (in USD) by the count of daily active users using the `calculate_arpu` macro, producing the average fees per user. Missing data points are filled with zeros to maintain continuous time series, and chain availability filters ensure data quality and consistency.

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

BENQI Liquid Staking

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape