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

BENQI is a non-custodial lending protocol built on Avalanche. BENQI was founded by an international team of software developers and launched in 2021.

 QI tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). BENQI’s investors include Dragonfly Capital, Mechanism Capital, Spartan, etc.

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BENQI

# BENQI 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 BENQI lending protocol. This metric answers the business question: "How much fee revenue does each active user generate on average per day?" The calculation divides total daily fees by the number of daily active users, providing insight into user monetization and protocol efficiency.

## 2. Data sources

- **BENQI v1 contract events**: Parsed Avalanche blockchain events from BENQI v1 lending markets including `AccrueInterest`, `NewReserveFactor`, `Borrow`, `Mint`, `Redeem`, and `RepayBorrow` events
- **Token metadata**: Token symbol and decimal configuration data for BENQI market tokens
- **End-of-day price feeds**: Daily closing prices for USD conversion of fee amounts
- **Market configuration**: Hardcoded allowlist of BENQI market contract addresses and their underlying token mappings

## 3. Step-by-step calculation

### Component A: Fee calculation
- **Purpose**: Calculate total daily fees generated by the BENQI protocol from interest accruals
- **Logic**: Extract `AccrueInterest` events containing `interestAccumulated` amounts from BENQI market contracts. Join with reserve factor configuration from `NewReserveFactor` events to determine the protocol's revenue split. Apply reserve factors with temporal logic - use the most recent reserve factor setting that was active during each interest accrual. Split accrued interest into protocol revenue (reserve_factor × interest) and supply-side fees ((1 - reserve_factor) × interest). Sum both components for total fees per transaction.
- **Key fields**: `interestAccumulated` (raw interest amount), `newReserveFactorMantissa` (protocol revenue percentage), `block_timestamp` (event timing), `address` (market contract)

### Component B: Daily active user calculation  
- **Purpose**: Count unique users who interacted with BENQI lending markets each day
- **Logic**: Collect user addresses from four lending event types: `Borrow` events (`borrower` addresses), `Mint` events (`minter` addresses for deposits), `Redeem` events (`redeemer` addresses for withdrawals), and `RepayBorrow` events (`payer` addresses for loan repayments). Group by day and deduplicate user addresses using HyperLogLog aggregation with precision 15 to handle large user sets efficiently. Create dimensional breakdowns by chain, user type, and product for flexible aggregation.
- **Key fields**: `borrower`, `minter`, `redeemer`, `payer` (user addresses), `block_timestamp` (event timing)

### Final aggregation
- **Combining components**: Join daily fee totals with daily active user counts using the `calculate_arpu` macro, which performs the division operation (fees ÷ users = AFPU)
- **Currency conversion**: Fee amounts are decimal-corrected based on underlying token configurations and converted to USD using end-of-day price feeds matched by date and token
- **Time aggregation**: All events are truncated to daily boundaries (timestamp_trunc to day level) before aggregation
- **Final calculation**: AFPU = Total Daily Fees (USD) ÷ Daily Active Users, with zero-filling applied for days with no activity and chain availability filters ensuring data consistency across time periods

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

BENQIQI

Average fees per user (AFPU)

Average fees per user (AFPU)

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