Hop allows users to send tokens from one rollup to another almost immediately without having to wait for the rollup’s challenge period. Liquidity providers deposit funds into Hop AMM pools and receive trading fees from traders (supply-side fees).

Hop is a scalable rollup-to-rollup general token bridge. Hop was co-founded by Christopher Whinfrey and launched in 2021.

HOP tokenholders own and govern the protocol. They currently take a cut of the total transfer fees paid by users (revenue). Hop’s investors include 1confirmation, Infinite Capital, etc.

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Hop Protocol

# Hop Protocol Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the daily average fee revenue generated per active user on the Hop protocol. This metric answers how much revenue the protocol generates per user interaction and is calculated by dividing total daily fees by the number of daily active users. Hop generates fees from two primary sources: bonder fees from cross-chain bridge transfers and liquidity provider (LP) fees from token swaps within the protocol's automated market maker (AMM).

## 2. Data sources

The calculation relies on several types of blockchain data and external feeds:

- **Bridge transfer events**: Parsed `TransferSentToL2` events from Ethereum L1 bridge contracts and `TransferSent` events from L2 bridge contracts across Arbitrum, Optimism, Polygon, and Base
- **AMM swap events**: Parsed `TokenSwap` events from Hop's L2 AMM contracts on supported Layer 2 chains
- **Token price feeds**: End-of-day token price feeds for USD conversion of fee amounts
- **Token metadata**: Token decimal precision data for proper amount normalization
- **Chain mapping data**: Chain ID to chain name mappings for cross-chain data organization

## 3. Step-by-step calculation

### Component A: Bridge transfer fees
- **Purpose**: Calculates bonder fees collected from cross-chain bridge transfers
- **Logic**: Extracts bridge transfer data from `TransferSentToL2` events on Ethereum and `TransferSent` events on Layer 2 chains. Each bridge transfer event contains a `bonderFee` amount that represents the fee paid to bonders for facilitating cross-chain transfers. The system processes transfers for multiple tokens including USDC, DAI, ETH, USDT, WBTC, HOP, MAGIC, RETH, SNX, SUSD, and MATIC across all supported chains. Bridge events are filtered to include only valid transfers with proper recipient addresses and chain ID mappings.
- **Key fields**: `bonderFee` (fee amount), `recipient` (user address), `chainId` (destination chain), `amount` (transfer amount), `block_timestamp` (transaction timing)

### Component B: LP swap fees  
- **Purpose**: Calculates liquidity provider fees from token swaps within Hop's AMM
- **Logic**: Processes `TokenSwap` events from L2 AMM contracts to identify trading volume. LP fees are calculated by multiplying the `tokensSold` amount by a fixed fee rate of 0.0004 (0.04%). This fee structure applies uniformly across all token pairs and chains. The system captures swap data for the same token set as bridge transfers, ensuring comprehensive fee coverage across all Hop protocol interactions.
- **Key fields**: `tokensSold` (trading volume), `lp_fee_percentage` (0.04% rate), calculated LP fee amount

### Component C: Daily active users
- **Purpose**: Counts unique users interacting with Hop protocol daily
- **Logic**: Identifies active users from `recipient` addresses in bridge transfer events across all supported chains. Users are defined as addresses that receive bridge transfers, representing actual protocol usage rather than just transaction initiators. The system uses HyperLogLog sketches to handle cross-chain user deduplication, ensuring users active on multiple chains are counted only once per day. User data is aggregated at multiple dimensions including project-level, chain-level, and user-type-level for comprehensive analysis.
- **Key fields**: `recipient` (user address), `block_timestamp` (activity date), `chain` (source chain)

### Final aggregation
- **Combining components**: Bridge bonder fees and LP swap fees are combined through a union operation, creating a comprehensive daily fee dataset. Both fee types are processed through identical normalization steps including decimal correction and USD conversion.
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token price feeds. The conversion process applies token-specific decimal corrections to ensure accurate value representation across different token standards.
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation. Fees are summed across all transactions, tokens, and chains for each day, while user counts use HyperLogLog merge operations to maintain deduplication accuracy.
- **Final calculation**: AFPU is calculated by dividing total daily fees (in USD) by the daily active user count. Days with zero fees or zero users result in zero AFPU values. The metric includes a fill strategy that populates missing days with zero values to maintain continuous time series data for analysis and reporting.

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

Hop ProtocolHOP

Average fees per user (AFPU)

Average fees per user (AFPU)

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