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Coinshift

# Coinshift 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 Coinshift protocol. This metric is calculated by dividing total daily fees by the number of daily active users (DAU). AFPU provides insight into the revenue efficiency of the protocol and the value generated per user interaction. The calculation specifically focuses on Assets Under Management (AUM) fees charged on idle assets held in Coinshift vaults.

## 2. Data sources

The AFPU calculation relies on several key data sources:

- **Ethereum token transfer events**: Blockchain transaction logs capturing `Transfer` events to and from Coinshift vault addresses to identify user interactions
- **Coinshift idle assets state data**: External API data tracking the amount of assets held idle in each Coinshift vault over time
- **wUSDL token events**: Parsed Ethereum `Deposit` and `Withdraw` events from the wUSDL contract to calculate conversion rates between wrapped and underlying tokens
- **Static vault configuration**: Hardcoded vault addresses, underlying token addresses, AUM fee rates, and product identifiers for each Coinshift vault
- **End-of-day token price feeds**: Daily token prices in USD for final currency conversion
- **Token metadata**: Token decimal precision information for proper amount calculations

## 3. Step-by-step calculation

### Component A: AUM fee calculation

- **Purpose**: Calculate Assets Under Management fees charged on idle assets in Coinshift vaults
- **Logic**: Start with idle assets state data showing asset amounts held in each vault over time. For each time interval between consecutive snapshots, calculate the AUM fee by multiplying the asset amount by the vault's AUM fee rate (typically 0.2% annually for USDL vaults) and the time proportion. The time proportion is calculated as the number of seconds in the interval divided by the number of seconds in a year (31,536,000). This creates a pro-rated daily fee based on the annual AUM fee rate. Only process data from January 1, 2025 onwards when AUM fees became active.
- **Key fields**: `amount` (idle asset balance), `aum_fee_rate` (annual fee rate), `timestamp` (snapshot time), `attributed_aum_fee` (calculated fee amount)

### Component B: Token conversion and fee aggregation

- **Purpose**: Convert wUSDL fees to underlying USDL tokens and aggregate daily fees
- **Logic**: Some vaults hold wUSDL (wrapped USDL) tokens that need conversion to underlying USDL for consistent fee calculation. Extract conversion rates from wUSDL `Deposit` and `Withdraw` events by taking the ratio of wrapped tokens to underlying assets. Apply these conversion rates to convert wUSDL fee amounts to USDL equivalents. Aggregate all fees by day, vault, and token to create daily fee totals. Convert final fee amounts to USD using end-of-day price feeds and apply decimal corrections based on token precision.
- **Key fields**: `conversion_rate` (wUSDL to USDL ratio), `fee_amount` (daily aggregated fees), `revenue` (USD-converted fee amount)

### Component C: Daily active user tracking

- **Purpose**: Identify and count unique users interacting with Coinshift vaults each day
- **Logic**: Monitor token `Transfer` events to and from Coinshift vault addresses on Ethereum. Classify users based on transfer direction: users sending tokens to vault addresses are labeled as 'Depositor' and users receiving tokens from vault addresses are labeled as 'Withdrawer'. Extract the user address from each transfer and timestamp-truncate to daily boundaries. Use HyperLogLog (HLL) data structure to efficiently count distinct users across multiple dimensions including overall project level, by chain, by user type (depositor/withdrawer), and by product identifier. Filter data to only include transfers from January 1, 2025 onwards to match the fee calculation period.
- **Key fields**: `user_address` (unique user identifier), `user_type` (Depositor or Withdrawer), `product_id` (vault identifier), `user_dau` (distinct user count)

### Final aggregation

- **Combining components**: The fees component provides total daily fee revenue in USD, while the user DAU component provides the count of unique daily active users. Both metrics are aligned on the same daily timestamp boundaries
- **Currency conversion**: All fees are converted to USD using end-of-day price feeds with appropriate decimal corrections applied based on each token's precision
- **Time aggregation**: All data is aggregated to daily time boundaries using timestamp truncation to day level
- **Final calculation**: AFPU is calculated by dividing the total daily fees (in USD) by the daily active user count. The result represents the average fee revenue generated per active user on each day. Days with zero fees or zero users are filled with zero values to maintain complete time series data

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

Coinshift

Average fees per user (AFPU)

Average fees per user (AFPU)

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