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.

governance

github

twitter

discord

etherscan

website

Lending

Euler

# euler Arpu Methodology

## 1. Overview

Arpu (Average Revenue Per User) measures the average daily revenue generated by each active user of euler. This metric provides insight into the monetization efficiency of the protocol's core products, including Euler Lending and Euler Swap. It is calculated by dividing the total daily revenue by the number of active users (daily) across all supported blockchain networks.

## 2. Data sources

- **Blockchain events**: `VaultStatus`, `ConvertFees`, `Deposit`, `Withdraw`, `Repay`, and `Borrow` events from `EVault` contracts, plus `Swap` events from `EulerSwap` contracts and Uniswap V4 trade data, covering Ethereum, Base, Sonic, Avalanche, and 7 other chains
- **External data**: End-of-day price feeds for various crypto assets

## 3. Step-by-step calculation

### Component A: Active user tracking

- **Purpose**: Identify the daily unique participants across euler products
- **Logic**: Unique user addresses are extracted from interaction events. For Euler Lending, addresses are parsed from `Deposit`, `Withdraw`, `Repay`, and `Borrow` events from `EVault` contracts. For Euler Swap, user addresses are identified from `Swap` events and Uniswap V4 trade records. These addresses are aggregated to determine the total count of active users (daily) for the project.

### Component B: Euler Lending revenue calculation

- **Purpose**: Calculate the revenue generated from lending activities
- **Logic**: Revenue is derived from the accumulation of interest fees within the lending vaults. `VaultStatus` events from `EVault` contracts are parsed to track the `accumulated_fees` field. The daily revenue is determined by calculating the difference between the current and previous accumulated fee values. In instances where fees are converted, `protocol_shares` and `governor_shares` from `ConvertFees` events are incorporated to ensure accurate tracking. The resulting fee amounts are adjusted by an exchange rate calculated as the sum of `cash` and `total_borrows` divided by `total_shares`.

### Component C: Euler Swap revenue calculation

- **Purpose**: Calculate the revenue generated from decentralized exchange activities
- **Logic**: Trading volumes are extracted from `Swap` events from `EulerSwap` contracts and Uniswap V4 trade data. For each trade, the volume is multiplied by the specific `fee_tier` defined in the trading pair configuration. This product represents the protocol revenue generated by the swap.

### Component D: USD conversion and ARPU aggregation

- **Purpose**: Normalize revenue to USD and calculate the final average per user
- **Logic**: All revenue components from Euler Lending and Euler Swap are normalized by decimal precision and multiplied by end-of-day price feeds to determine the total daily revenue in USD. This total revenue is then divided by the count of active users (daily). The metric is calculated with daily granularity using UTC day boundaries.

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

EulerEUL

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape