Lenders deposit funds into Euler and receive interest payments from borrowers (supply-side fees).

Euler is a non-custodial lending protocol built on Ethereum. Euler was founded by Michael Bentley, Doug Hoyte & Jack Prior and launched in 2021.

EUL tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Euler’s investors include Paradigm, Lemniscap, Launchhub Ventures, etc.

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Euler

# euler Afpu Methodology

## 1. Overview

Afpu (Average Fees Per User) measures the average daily fee contribution per unique active user across Euler Lending and Euler Swap on Ethereum, Base, Sonic, Avalanche, and 7 other chains. This metric is calculated by dividing the total daily fees generated by the number of unique active users (daily). It serves as a key indicator of the protocol's monetization efficiency and the average economic value provided by its user base.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **User Dau**: Derived from the User Dau metric
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Euler Lending fee tracking

- **Purpose**: Captures the total interest-based fees generated by lending vaults
- **Logic**: Interest fees are determined by monitoring `VaultStatus` events from `EVault` contracts to track `accumulated_fees`, `total_borrows`, `total_shares`, and `cash`. When fees are converted into shares, `protocol_shares` and `governor_shares` are extracted from `ConvertFees` events. An exchange rate is calculated as the sum of cash and total borrows divided by total shares. The final fee amount is derived by applying the interest fee percentage, which is initialized at 10% and updated via `GovSetInterestFee` events from `EVault` contracts.
- **Key fields**: `accumulated_fees`, `protocol_shares`, `governor_shares`, `total_borrows`, `total_shares`, `cash`, and `interest_fee`

### Component B: Euler Swap fee tracking

- **Purpose**: Captures the trading fees generated by swap activity
- **Logic**: Trading volumes are identified by parsing `Swap` events from `EulerSwap` contracts and base trade data from Uniswap V4 `PoolManager` contracts. For each trade, the volume is multiplied by the specific `fee_tier` assigned to the liquidity pool. Fee tiers are extracted from `PoolConfig` events or `Initialize` events from `PoolManager` contracts.
- **Key fields**: `token0_amount`, `token1_amount`, and `fee_tier`

### Component C: Active user identification

- **Purpose**: Identifies the daily count of unique users interacting with the protocol
- **Logic**: Unique wallet addresses are aggregated from core protocol interactions. For Euler Lending, addresses are extracted from `Deposit`, `Withdraw`, `Repay`, and `Borrow` events from `EVault` contracts. For Euler Swap, addresses are captured from `Swap` events. Users are deduplicated daily across all supported chains and products to calculate the total active users (daily).
- **Key fields**: `user_address` (owner, account, or sender) and `block_timestamp`

### Component D: Average fees per user calculation

- **Purpose**: Normalizes total fees by the active user count to determine the average value per user
- **Logic**: Total daily fees from Euler Lending and Euler Swap are summed and converted to USD using end-of-day price feeds. For the Bob chain, a fallback mechanism utilizes specific asset metadata and price feeds for tokens not covered by standard feeds. The final Afpu value is calculated by dividing the total daily USD fees by the daily count of unique active users.
- **Key fields**: `fees` (USD), `user_dau`, and `price_usd`

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

EulerEUL

Average fees per user (AFPU)

Average fees per user (AFPU)

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