The option buyers pay premiums (revenue) to HEGIC stakers, who collateralize the option positions and cover the buyers' potential profits from their collateral.

Hegic is a non-custodial options exchange built on Arbitrum. Hegic was founded by Molly Wintermute and launched in 2020.



HEGIC tokenholders own and govern the protocol. They charge a premium (revenue) for each option that is bought on the platform.

github

twitter

discord

etherscan

website

Derivative exchanges

Hegic

# Hegic Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average daily fees generated per active user on the Hegic options trading protocol. This metric quantifies user monetization efficiency by dividing total daily trading fees by the number of daily active users. The calculation tracks users who either purchase or exercise options on Hegic's Arbitrum-based derivatives platform.

## 2. Data sources

- **Arbitrum event logs**: Parsed Hegic protocol events including `PositionsManager_Transfer`, `HegicStrategyCall_Acquired`, and `OperationalTreasury_Paid` events from the Hegic v1 smart contracts
- **Arbitrum token transfer events**: USDC transfer records that capture fee payments associated with option transactions
- **End-of-day price feeds**: Token price data used for USD conversion of fee amounts
- **Strategy configuration**: Hardcoded mapping of 240+ Hegic strategy contract addresses to their corresponding option types, underlying assets (BTC/ETH), market sentiment, and position multipliers

## 3. Step-by-step calculation

### Component A: fees calculation
- **Purpose**: Calculate total daily fees generated from Hegic options trading activities
- **Logic**: Identify option purchase transactions by filtering `PositionsManager_Transfer` events where the `from` address is the null address, indicating new option minting. Join these events with USDC token transfer records occurring in the same transaction to capture the associated fee payments. Link option purchases to specific strategy types using `HegicStrategyCall_Acquired` events and the strategy dimensions table to classify trades by option type and underlying asset
- **Key fields**: `block_timestamp` for daily aggregation, `transaction_hash` for joining events, `value` from token transfers representing fee amounts in USDC, `token_address` filtered to USDC contract address, `tokenId` for linking options to strategies

### Component B: user activity tracking
- **Purpose**: Count daily active users who interact with Hegic options
- **Logic**: Identify two types of users from Arbitrum event logs. Option buyers are captured from `PositionsManager_Transfer` events where the `from` address is null (new option mints) and the `to` address represents the buyer. Option exercisers are identified from `OperationalTreasury_Paid` events where the `account` field represents users exercising their options. Aggregate these addresses by day using HyperLogLog functions to efficiently count distinct users across multiple dimensions
- **Key fields**: `block_timestamp` for daily grouping, `to` address from transfer events for option buyers, `account` address from treasury events for option exercisers, `user_address` as the unified user identifier

### Final aggregation
- **Combining components**: Join daily fees and daily active users by timestamp to calculate the ratio
- **Currency conversion**: Convert USDC fee amounts to USD using end-of-day token price feeds and apply decimal correction to normalize token amounts to standard units
- **Time aggregation**: Group all data by day using timestamp truncation to daily boundaries
- **Final calculation**: Divide total daily fees in USD by the count of daily active users to produce the average fees per user metric, with zero-filling applied to ensure continuous daily time series without gaps

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

HegicHEGIC

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape