Liquidity providers (LPs) deposit funds into Convex Finance and receive a return on investment (supply-side fees).

Convex Finance is an asset management and staking protocol built on Ethereum. Convex Finance launched in May 2021.

CVX tokenholders own and govern the protocol. They currently take a cut of the total yield generated (revenue).

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Convex Finance

# Convex Finance Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) for Convex Finance measures the daily revenue generated per active user of the protocol. This metric helps evaluate user monetization efficiency in the yield aggregation business model. The calculation divides total daily protocol revenue (earned from yield farming activities across multiple chains) by the number of daily active users (addresses that deposit funds into Convex).

## 2. Data sources

- **Token transfer events**: Parsed `Transfer` events from Ethereum, Arbitrum, and Polygon blockchains capturing both user deposits and yield distributions
- **End-of-day price feeds**: Token price data for USD conversion of yield amounts  
- **Token metadata**: Decimal precision information for proper amount calculations
- **Protocol configuration**: Hardcoded yield share percentages and contract addresses specific to Convex Finance operations

## 3. Step-by-step calculation

### Component A: User identification and daily active users
- **Purpose**: Identify active Convex users and count daily unique users
- **Logic**: Extract all token transfer events where the recipient address is Convex's deposit account (`0x989aeb4d175e16225e39e87d0d97a3360524ad80`). The sender addresses represent users depositing funds into Convex pools. Count distinct user addresses per day using HyperLogLog aggregation to handle large datasets efficiently. Create dimensional breakdowns at project level, chain level, user type level, and product level for comprehensive analysis.
- **Key fields**: `from_address` (user), `to_address` (Convex deposit contract), `block_timestamp` (for daily grouping), `transaction_hash` and `log_index` (for uniqueness)

### Component B: Yield collection across multiple sources  
- **Purpose**: Capture all yield-generating token transfers that contribute to protocol revenue
- **Logic**: Monitor specific token transfers between Convex protocol accounts representing different yield sources. Track Curve incentive distributions (CRV tokens transferred from voter proxy to booster account), Curve trading fee distributions (triCRV tokens from booster to reward pool), Frax FPIS incentives (FPIS tokens to fee deposit accounts), and Frax FXS incentives (FXS tokens to multiple fee deposit accounts). Each yield source operates across different chains and has specific start dates when tracking began.
- **Key fields**: `from_address` and `to_address` (protocol account pairs), `token_address` (yield token), `value` (yield amount), `block_timestamp` (timing)

### Component C: Protocol revenue share calculation
- **Purpose**: Calculate Convex's actual revenue portion from total yields collected
- **Logic**: Apply predefined protocol yield share percentages to each yield source. Curve incentives and Frax FXS incentives use 17% protocol share, while Curve trading fees and Frax FPIS incentives use 100% protocol share. For FXS tokens, first divide the collected amount by 0.17 to determine total yield generated, then apply the 17% protocol share to calculate Convex's portion.
- **Key fields**: `account_name` (yield source), `protocol_yield_share` (percentage), `amount` (yield amount)

### Final aggregation
- **Combining components**: Sum all protocol revenue amounts across different yield sources and chains for each day. Count distinct users across all chains and user types for each day using HyperLogLog merge operations.
- **Currency conversion**: Convert all yield amounts to USD using end-of-day price feeds matched by token address and date. Apply decimal corrections based on each token's precision (e.g., 18 decimals for most ERC20 tokens).
- **Time aggregation**: Truncate all timestamps to daily boundaries and group calculations by day.
- **Final calculation**: Divide total daily protocol revenue (in USD) by total daily active users to calculate average revenue per user. Fill missing days with zero values for both revenue and user metrics to maintain consistent time series data.

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

Convex FinanceCVX

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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