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

Cap is a non-custodial exchange for perpetual contracts built on Arbitrum. Cap was founded by an anonymous team and launched in 2021.

CAP token holders own and govern the protocol. They currently take a cut of trading fees paid by traders (revenue).

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# Cap Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU (Average Revenue Per User) measures the average daily revenue generated per active user on the Cap protocol. This metric is calculated by dividing the protocol's daily revenue by the number of daily active users, providing insight into user monetization efficiency. Cap is a decentralized derivatives protocol operating on Arbitrum and Base chains with two major versions (v3 and v4) offering perpetual trading functionality.

## 2. Data sources

The calculation relies on several key blockchain data sources:
- **Cap v3 trading events**: Parsed `Trading_PositionUpdated_event` and `Trading_ClosePosition_event` logs from Arbitrum blockchain containing trading fee information and user addresses
- **Cap v4 trading events**: Parsed `Positions_FeePaid_event`, `Positions_PositionIncreased_event`, and `Positions_PositionDecreased_event` logs from Arbitrum and Base blockchains capturing fee payments and user trading activities
- **External price data**: End-of-day token price feeds for USD conversion of fees collected in various tokens
- **Token metadata**: Token decimals and symbols for proper amount calculations and display

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Calculate total daily protocol revenue from perpetual trading fees across Cap v3 and v4
- **Logic**: For Cap v3 on Arbitrum, extract fee amounts from `Trading_PositionUpdated_event` and `Trading_ClosePosition_event` logs. Apply time-based revenue percentages: 50% of fees from November 2021 to January 2022, 80% from January to February 2022, and 95% thereafter. For Cap v4 on both Arbitrum and Base, extract `stakingFee` and `treasuryFee` amounts from `Positions_FeePaid_event` logs as these represent protocol revenue, while `poolFee` and `keeperFee` go to liquidity providers. Convert ETH addresses to WETH addresses for consistency. Apply decimal corrections based on token specifications and convert all amounts to USD using end-of-day price feeds. Aggregate fees daily by summing all protocol revenue across both versions and chains.
- **Key fields**: `fee` amounts from Cap v3 events (8 decimals), `stakingFee` and `treasuryFee` from Cap v4 events, `currency`/`asset` token addresses, `block_timestamp` for daily aggregation

### Component B: Daily active users calculation

- **Purpose**: Count unique users who performed trading activities each day across Cap protocol
- **Logic**: Identify trader addresses from multiple event types across both protocol versions. For Cap v3 on Arbitrum, extract `user` addresses from `Trading_PositionUpdated_event` and `Trading_ClosePosition_event` logs, but exclude events where `wasLiquidated` is true to focus on voluntary trading activity. For Cap v4 on Arbitrum and Base, extract `user` addresses from `Positions_PositionIncreased_event` and `Positions_PositionDecreased_event` logs. All users are classified as 'Trader' type in the derivatives market sector. Use HyperLogLog aggregation to count distinct user addresses per day, ensuring accurate unique counts even with high cardinality. Generate multiple dimensional breakdowns including overall project level, by chain, by user type, and by product.
- **Key fields**: `user` addresses from various position events, `block_timestamp` for daily truncation, `wasLiquidated` flag for filtering

### Final aggregation

- **Combining components**: The ARPU calculation uses the `calculate_arpu` macro which divides daily revenue totals by daily active user counts for the same day. Revenue data comes from the aggregated Cap v3 and v4 fee calculations converted to USD, while user data comes from the HyperLogLog-aggregated unique trader counts
- **Currency conversion**: All revenue is converted to USD using end-of-day price feeds before aggregation, ensuring consistent currency denomination across different tokens and chains
- **Time aggregation**: Both revenue and user data are truncated to daily boundaries using `timestamp_trunc` to ensure proper alignment for the division calculation
- **Final calculation**: For each day, ARPU equals total daily protocol revenue in USD divided by the number of unique active traders. The calculation handles edge cases where user count is zero by applying a 'fill_zeros' strategy through the `finalize_metric_arpu` macro, ensuring consistent data availability across all time periods

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

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