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 revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the daily revenue generated per active user on the BENQI lending protocol. This metric is calculated by dividing the protocol's daily revenue by the number of daily active users. ARPU helps assess user monetization efficiency and revenue generation per user engagement. The calculation uses protocol revenue from lending interest fees and counts unique users across all lending activities (borrowing, depositing, withdrawing, repaying).

## 2. Data sources

- **Avalanche event logs**: Parsed `AccrueInterest` events from BENQI v1 market contracts containing accrued interest amounts
- **Avalanche event logs**: Parsed `NewReserveFactor` events from BENQI v1 market contracts tracking reserve factor changes over time
- **Avalanche event logs**: Parsed `Borrow` events from BENQI v1 market contracts identifying borrower addresses
- **Avalanche event logs**: Parsed `Mint` events from BENQI v1 market contracts identifying depositor addresses  
- **Avalanche event logs**: Parsed `Redeem` events from BENQI v1 market contracts identifying withdrawer addresses
- **Avalanche event logs**: Parsed `RepayBorrow` events from BENQI v1 market contracts identifying repayer addresses
- **Token metadata**: Token symbols, decimal places, and contract addresses for BENQI supported assets
- **End-of-day price feeds**: Daily closing prices for USD conversion of token amounts
- **Market configuration**: Hardcoded allowlist of 12 BENQI market contracts and their underlying token addresses

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate daily protocol revenue from lending interest fees
- **Logic**: Extract `AccrueInterest` events containing the `interestAccumulated` field representing total interest accrued on each market. Join with market metadata to identify the underlying token and market contract. Apply time-based reserve factor logic using `NewReserveFactor` events to determine what portion of accrued interest becomes protocol revenue. The reserve factor represents the protocol's share of interest, with the remainder going to supply-side participants. Use lead timestamp logic to apply the correct reserve factor based on when changes occurred. Calculate revenue as reserve factor multiplied by accrued interest amount. Convert token amounts to USD using end-of-day price feeds and apply decimal corrections. Aggregate to daily totals across all BENQI markets.
- **Key fields**: `interestAccumulated` (total interest accrued), `newReserveFactorMantissa` (protocol revenue share), `account_address` (market contract), `token_address` (underlying asset)

### Component B: Daily active users calculation  
- **Purpose**: Count unique users interacting with BENQI protocol daily
- **Logic**: Extract user addresses from four types of lending events: `Borrow` events capturing `borrower` addresses, `Mint` events capturing `minter` addresses (depositors), `Redeem` events capturing `redeemer` addresses (withdrawers), and `RepayBorrow` events capturing `payer` addresses (repayers). Categorize users by interaction type but aggregate across all types for total DAU. Use HyperLogLog probabilistic counting for efficient distinct user aggregation across large datasets. Truncate timestamps to daily boundaries and count unique user addresses per day. Create dimensional breakdowns by chain, user type, and product but use total aggregated count for ARPU calculation.
- **Key fields**: `borrower`, `minter`, `redeemer`, `payer` (user addresses from respective events), `user_type` (interaction category)

### Final aggregation
- **Combining components**: Join daily revenue totals with daily active user counts by timestamp. Both components are aggregated to daily level with consistent time boundaries using timestamp truncation to day level.
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day price feeds. Token decimal places are corrected using token metadata before USD conversion.
- **Time aggregation**: Daily time boundaries are enforced by truncating all timestamps to day level. Missing days are filled with zeros for both revenue and user counts to ensure complete time series.
- **Final calculation**: ARPU is calculated as daily revenue divided by daily active users using the `calculate_arpu` macro. Days with zero users result in null ARPU values to avoid division by zero. The result represents average USD revenue generated per active user per day across all BENQI lending activities.

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

BENQIQI

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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