Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

governance

github

twitter

discord

etherscan

website

Lending

Gearbox

# Gearbox Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is calculated as the total daily fees divided by active users (daily) over a fixed 24-hour window. The economic value generated per active user on a daily basis is evaluated through this metric. Insights into user transaction behavior and protocol monetization efficiency are provided by analyzing the relationship between total fees and user activity. Active users (daily) and total daily fees from Gearbox V1, Gearbox V2, and Gearbox V3 are utilized for the performance of this calculation.

## 2. Data sources

- **Fees**: Derived from the Fees metric, covering Ethereum, Monad, and Plasma
- **Active users (daily)**: Derived from the Active users (daily) metric, covering Ethereum, Monad, and Plasma

## 3. Step-by-step calculation

### Component A: Gearbox V1 and V3 daily interest and markup accrual

- **Purpose**: To calculate the daily interest accrued by lenders and the markup fees collected by the protocol for Gearbox V1 and Gearbox V3.
- **Logic**: Daily pool rates and borrow balances are monitored for Gearbox V1 and Gearbox V3. For Gearbox V1, supply-side interest is calculated based on total borrowed amounts and borrow APY. For Gearbox V3, supply-side interest is calculated based on the change in the base interest index and total borrowed amounts, while quota fees are accrued daily from annualized quota revenue. Protocol markup is calculated through the application of the credit manager's interest fee rate to the index change and quota fees. On chains where historical state is unavailable, realized accruals are estimated from repaid profit and interest fees. All accrued amounts are normalized by decimal precision and converted to USD by utilizing end-of-day price feeds.

### Component B: Gearbox V1, V2, and V3 liquidation fee and liquidator premium extraction

- **Purpose**: To capture protocol liquidation fees and liquidator premiums across all Gearbox versions.
- **Logic**: Liquidation events are parsed from the smart contracts. For Gearbox V1 and Gearbox V2, `LiquidateCreditAccount` events from `CreditManager` and `CreditFacade` contracts are analyzed alongside `Repay` events from `Pool` contracts for the calculation of the liquidator's discount. For Gearbox V3, `LiquidateCreditAccount` and `PartiallyLiquidateCreditAccount` events from `CreditFacadeV3` contracts are combined with `Repay` events from `PoolV3` contracts and historical debt reads for the determination of the protocol liquidation fee and the liquidator's premium. These values are normalized by decimal precision and converted to USD by utilizing end-of-day price feeds.

### Component C: Gearbox V1 treasury transfer and revenue tracking

- **Purpose**: To capture protocol revenue for Gearbox V1 from treasury transfers.
- **Logic**: ERC-20 asset transfers to the protocol treasury address are tracked. Transfers of diesel assets (represented as pool shares minted to the treasury on repayment) and pool withdrawal fees are identified as protocol revenue. Transfers associated with treasury liquidity withdrawals are excluded. The revenue amounts are normalized by decimal precision and converted to USD by utilizing end-of-day price feeds.

### Component D: Gearbox V1, V2, and V3 active users (daily) tracking

- **Purpose**: To determine the active users (daily) count for Gearbox.
- **Logic**: Unique user addresses are identified daily across Gearbox V1, Gearbox V2, and Gearbox V3. Depositors and withdrawers are identified from `AddLiquidity` and `RemoveLiquidity` events from `Pool` contracts, and `Deposit` and `Withdraw` events from `PoolV3` contracts. Borrowers and repayers are identified from `OpenCreditAccount` and `CloseCreditAccount` events from `CreditFacadeV3` contracts, as well as from borrow and repay events mapped to credit account owners over time. The active users (daily) count is aggregated as the total number of unique addresses per UTC day.

### Component E: Average fees per user calculation

- **Purpose**: To calculate the average fees paid per active user on a daily basis.
- **Logic**: The total daily fees (the sum of accrued interest, quota fees, protocol markup, liquidation fees, liquidator premiums, and Gearbox V1 treasury revenue) are divided by the active users (daily) count. Safe division is applied for the prevention of division by zero, with zero being returned if no active users are recorded for a given day. The final average fees per user (AFPU) values are generated with daily granularity.

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

GearboxGEAR

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape