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Fathom

# Fathom Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU (Average Revenue Per User) measures the average daily revenue generated per active user across Fathom's ecosystem. This metric answers the key business question: "How much revenue does each user generate for the protocol on average?" The calculation divides total daily revenue by the number of distinct daily active users, providing insights into user monetization efficiency and protocol economic performance.

## 2. Data sources

The ARPU calculation relies on several key data sources:

- **DEX trading events**: Parsed XDC blockchain `Pair_Swap` events from Fathom DEX v2 contracts capturing all trading activity
- **Lending protocol events**: XDC blockchain events including `Supply`, `Withdraw`, `Borrow`, `Repay`, and `FlashLoan` events from Fathom Lending v3 contracts
- **Treasury revenue data**: XDC blockchain `LendingPool_MintedToTreasury` events and treasury accrual state data tracking protocol earnings
- **Trading pair metadata**: XDC blockchain `Factory_PairCreated` events defining available trading pairs and fee structures
- **Protocol configuration data**: XDC blockchain `LendingPoolConfigurator` events containing reserve factors and market parameters
- **Transaction records**: XDC blockchain transaction logs linking events to user addresses
- **External data**: End-of-day token price feeds and token metadata including symbols and decimal precision

## 3. Step-by-step calculation

### Component A: Daily active users calculation

- **Purpose**: Count distinct users who interact with Fathom protocols daily
- **Logic**: Extract user addresses from DEX trading activities and lending protocol interactions. DEX users are identified from `Pair_Swap` events by linking to transaction records to get the transaction initiator address. Lending users are captured from multiple event types including supply, withdraw, borrow, repay, and flash loan actions, using the appropriate user address field from each event type (`user`, `initiator`, `repayer` fields). All user addresses are aggregated using distinct count by day to avoid double-counting users who perform multiple actions or use multiple products
- **Key fields**: User addresses from `from_address`, `user`, `initiator`, and `repayer` fields across different event types

### Component B: DEX revenue calculation

- **Purpose**: Calculate protocol revenue from decentralized exchange trading fees
- **Logic**: Process `Pair_Swap` events to extract token amounts traded (`amount0In`, `amount0Out`, `amount1In`, `amount1Out`). Join with trading pair metadata to get token addresses, decimals, and fee tiers. Calculate trading volume by correcting for decimals and converting to USD using end-of-day price feeds. Apply fee tier percentages (typically 0.3%) to get total fees, then take 5% as protocol revenue (remaining 95% goes to liquidity providers). Volume is calculated using the bought token's price when available, falling back to sold token price
- **Key fields**: Token amounts (`amount0In`, `amount0Out`, `amount1In`, `amount1Out`), trading pair addresses, fee tier percentages, token decimal precision

### Component C: Lending revenue calculation

- **Purpose**: Calculate protocol revenue from lending operations
- **Logic**: Combine two revenue streams - interest payments and flash loan fees. Interest revenue is calculated by taking treasury mint amounts from `LendingPool_MintedToTreasury` events and adding treasury accrual amounts from protocol state data. These represent the protocol's share of borrower interest payments, determined by reserve factors. Flash loan revenue comes from `FlashLoan` events where 0.04% of the premium amount goes to the protocol. Both streams are corrected for token decimals and converted to USD using end-of-day price feeds
- **Key fields**: Treasury mint amounts (`amountMinted`), treasury accrual values, flash loan premium amounts, reserve factor percentages, token addresses and decimals

### Final aggregation

- **Combining components**: Sum DEX revenue and lending revenue to get total daily protocol revenue. Use the distinct daily active user count from both DEX and lending activities
- **Currency conversion**: All revenue components are converted to USD using end-of-day price feeds matched by date, token address, and blockchain
- **Time aggregation**: All events are truncated to daily boundaries using timestamp truncation to day granularity
- **Final calculation**: ARPU = Total Daily Revenue (USD) ÷ Distinct Daily Active Users, where revenue includes both DEX trading fees (5% of trading volume) and lending protocol earnings (interest + flash loan fees)

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

Fathom

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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