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Lending

Dolomite

# Dolomite Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) for Dolomite measures the average daily revenue generated per active user on the Dolomite lending protocol. This metric is calculated by dividing total daily revenue by daily active users across all supported chains (Arbitrum, Base, Ink, Berachain, and Ethereum). ARPU provides insight into the monetization efficiency of the protocol and revenue per user engagement.

## 2. Data sources

- **Dolomite smart contract events**: Parsed events from `DolomiteMargin` contracts across Arbitrum, Base, Ink, Berachain, and Ethereum including trading, lending, borrowing, liquidation, and margin account activities
- **User interaction events**: `LogDeposit`, `LogWithdraw`, `LogTrade`, `LogTransfer`, `LogLiquidate`, `LogVaporize`, `LogBuy`, and `LogSell` events that identify active users
- **Interest rate data**: `LogIndexUpdate` events containing borrow and supply index changes for interest calculations
- **Fee configuration events**: `LogSetEarningsRate` and `LogSetEarningsRateOverride` events for protocol fee settings
- **oARB option events**: `VesterProxy_PositionClosed` and `VesterProxy_VestingPositionCreated` events for option exercise revenues
- **Market configuration**: `LogAddMarket` events defining available lending markets and token mappings
- **End-of-day price feeds**: Token price data for USD conversion
- **Token metadata**: Symbol, decimal, and address information for supported tokens
- **Dolomite market prices**: Internal market price data as backup for USD conversion

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate total daily revenue from lending interest fees and oARB option exercises
- **Logic**: Revenue is derived from two sources. First, interest fees are calculated by identifying borrow index changes from `LogIndexUpdate` events, multiplying by outstanding loan amounts from account balance updates, and applying the protocol's fee share (1 minus the supply side fee share). Fee shares are determined by global earnings rate settings with potential market-specific overrides. Second, oARB option revenues come from ETH payments made when vesting positions are closed. All revenue amounts are converted to USD using end-of-day price feeds, with Dolomite internal market prices as fallback. Daily revenue is aggregated across all chains and markets.
- **Key fields**: `borrow_index`, `previous_borrow_index`, `par_amount`, `supply_side_fee_share`, `revenue_amount`, `price_usd`

### Component B: Daily active users calculation  
- **Purpose**: Count unique users who interact with Dolomite protocols each day
- **Logic**: Users are identified from multiple types of DolomiteMargin contract events including deposits, withdrawals, internal trades, external trades, transfers, liquidations, and vaporizations. User addresses are extracted from event parameters like `takerAccountOwner`, `accountOwner`, `solidAccountOwner`, etc. depending on the event type. Users are categorized by type (Depositor, Withdrawer, Trader, Margin User, Liquidator) and chain. Daily distinct users are counted using HyperLogLog algorithms for efficient deduplication across multiple event types and chains.
- **Key fields**: `accountOwner`, `takerAccountOwner`, `accountOneOwner`, `solidAccountOwner`, `user_address`, `block_timestamp`

### Final aggregation
- **Combining components**: Daily revenue totals are divided by daily active user counts using the `calculate_arpu` macro
- **Currency conversion**: All revenue components are converted to USD using end-of-day price feeds before aggregation
- **Time aggregation**: Data is aggregated to daily boundaries using `timestamp_trunc(block_timestamp, day)`
- **Final calculation**: ARPU equals total daily revenue in USD divided by total daily active users, with zero-filling applied for days without data

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

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