Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Hydration is a Polkadot parachain specialized in trading, lending, and stablecoin issuance.

HDX holders own and govern the protocol. Hydration’s investors include KR1 plc, Hypersphere, etc.

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Hydration

# Hydration Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) measures the average daily revenue generated by each active user within the Hydration ecosystem. This metric reflects the protocol's ability to monetize its user base across its primary product offerings, including Hydration Substrate, Hydration EVM, Hydration DEX, Hydration Lending, and the HOLLAR stablecoin engine. By analyzing the relationship between total protocol revenue and active users (daily), the efficiency of the project's economic model is assessed relative to its adoption levels.

## 2. Data sources

- **Revenue**: Derived from the Revenue metric
- **Active users (daily)**: Derived from the Active users (daily) metric
- **Blockchain events**: `TransactionFeePaid` and `Executed` events, `Swapped`, `Swapped2`, and `Swapped3` events from the broadcast pallet, `MintedToTreasury`, `LiquidationCall`, and `ReserveDataUpdated` events from `LendingPool` contracts, and `Mint` and `Burn` events from `VToken` contracts, covering Hydration Substrate and Hydration EVM
- **External data**: End-of-day price feeds for native and supported assets

## 3. Step-by-step calculation

### Component A: Hydration Substrate and EVM revenue

- **Purpose**: Captures revenue generated from base layer transaction activity.
- **Logic**: `TransactionFeePaid` events are parsed from the Hydration Substrate chain, where the total amount and optional tips are summed. For Hydration EVM, `Executed` events are tracked. 100% of these transaction fees are classified as protocol revenue. Amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.

### Component B: Hydration DEX revenue

- **Purpose**: Captures the portion of swap fees retained by the protocol treasury.
- **Logic**: Trading activity is monitored through `Swapped`, `Swapped2`, and `Swapped3` events. Fees associated with these swaps are identified and filtered to include only those directed to specific protocol treasury addresses. These filtered fees are aggregated daily and converted to USD.

### Component C: Hydration Lending and HOLLAR revenue

- **Purpose**: Captures interest-based revenue and stability fees from lending and stablecoin operations.
- **Logic**: For Hydration Lending, revenue is derived from interest accruals and `MintedToTreasury` events from `LendingPool` contracts. Protocol revenue is calculated by applying the reserve factor to the total interest accrued. For HOLLAR, revenue is generated from interest accruals derived from `Mint` and `Burn` events from `VToken` contracts and `ReserveDataUpdated` events from `LendingPool` contracts. Additionally, transfers to the stability module are tracked, with 80% of the value classified as protocol revenue.

### Component D: User activity tracking

- **Purpose**: Identifies the unique daily participants across the ecosystem.
- **Logic**: Active users (daily) are identified by extracting unique transaction senders from Substrate extrinsics and the `Executed` events on the Hydration EVM layer. Addresses are de-duplicated across all products to provide a single count of unique participants per 24-hour window.

### Component E: ARPU calculation

- **Purpose**: Final calculation of revenue generated per individual user.
- **Logic**: The total daily revenue from all components is summed. This total is divided by the count of active users (daily). If no activity is recorded for a specific day, the value is returned as zero. The final output represents the USD-denominated revenue generated per user on a daily basis.

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

HydrationHDX

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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