Index Cooperative offers a range of token-based index products, which could be streamed, issued, and redeemed against a fee (supply-side fees).

Index Cooperative is an asset management protocol built on Ethereum. Index Cooperative was founded by Set Protocol and launched in 2020.

INDEX tokenholders own and govern the protocol. They currently take all of the total streaming fees paid by liquidity providers (revenue).

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Index Cooperative

# Index Cooperative Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the daily average fee revenue generated per unique user interacting with Index Coop products. This metric is calculated by dividing total daily fees by the number of daily active users. AFPU provides insights into the revenue efficiency of Index Coop's asset management protocol and helps assess the monetization per user engagement. The metric combines both direct management fees from token operations and streaming fees from capital deployment.

## 2. Data sources

- **SetToken issuance events**: Parsed `SetTokenIssued` events from SetProtocol v2 `BasicIssuanceModule` and `DebtIssuanceModule` contracts on Ethereum and Polygon, capturing token minting transactions and associated manager fees
- **SetToken redemption events**: Parsed `SetTokenRedeemed` events from SetProtocol v2 `BasicIssuanceModule` and `DebtIssuanceModule` contracts on Ethereum and Polygon, capturing token burning transactions and associated manager fees  
- **Streaming fee events**: Parsed `StreamingFeeUpdated` events from SetProtocol v2 `StreamingFeeModule` contract on Ethereum, tracking changes to streaming fee rates for each token
- **End-of-day price feeds**: Token price data for USD conversion of fee amounts and capital deployment values
- **Token metadata**: Decimal precision information for proper token amount calculations and transformations

## 3. Step-by-step calculation

### Component A: User identification and counting

- **Purpose**: Identifies and counts unique daily active users interacting with Index Coop products
- **Logic**: Extracts user addresses from SetToken issuance and redemption events. Users are classified as either 'Minter' (from issuance events using the `_to` parameter) or 'Burner' (from redemption events using the `_redeemer` parameter). Events are filtered to only include Index Coop products by matching token addresses against the product dimension table. Daily distinct user counts are calculated using HyperLogLog aggregation for efficient counting across multiple dimensions including chain, user type, and product breakdowns.
- **Key fields**: `user_address` from event parameters, `block_timestamp` for daily grouping, `token_address` for product filtering, `user_type` classification

### Component B: Direct management fees calculation  

- **Purpose**: Calculates management fees collected directly from token issuance and redemption transactions
- **Logic**: Processes SetToken issuance and redemption events to extract manager fees. For `DebtIssuanceModule` events, uses the `managerFee` parameter directly. For `BasicIssuanceModule` events, sets fee amount to zero as these don't include manager fees. Applies decimal correction using token metadata to ensure proper precision. Filters events to only include Index Coop products and aggregates fees by day.
- **Key fields**: `managerFee` amounts from events, `quantity` for token amounts, `setToken` addresses for product identification

### Component C: Streaming fees calculation

- **Purpose**: Calculates daily streaming fees based on capital deployed and applicable fee tiers
- **Logic**: Determines capital deployment by tracking cumulative token issuance minus redemptions for each product. Applies decimal corrections and filters out negative deployment values. Joins with fee tier data that tracks streaming fee rates over time, using forward-fill logic to apply the most recent fee tier to each day. Calculates daily streaming fees as: Capital Deployed × (Fee Tier ÷ 365) where 365 represents the annualization factor to convert annual fee rates to daily amounts.
- **Key fields**: `capital_deployed` from cumulative token operations, `fee_tier` rates from streaming fee events, daily timestamps for calculation periods

### Component D: Fee tier management

- **Purpose**: Maintains historical fee tier rates for accurate streaming fee calculations
- **Logic**: Processes `StreamingFeeUpdated` events to capture fee tier changes, converting fee amounts from wei (dividing by 10^18) to decimal representation. Combines these updates with initial fee tiers from the product dimension table. Uses forward-fill logic to ensure each day has an applicable fee tier, carrying forward the most recent rate when no updates occur.
- **Key fields**: `newStreamingFee` from update events, `setToken` addresses, initial `fee_tier` values from product configuration

### Final aggregation

- **Combining components**: Direct management fees and streaming fees are summed together for each day, token, and chain combination. All fee amounts are converted to USD using end-of-day price feeds and decimal-corrected values.
- **Currency conversion**: Fee amounts are converted to USD using end-of-day token price feeds, applying the conversion after decimal corrections to ensure accurate pricing
- **Time aggregation**: Both fees and user counts are aggregated to daily boundaries using day-truncated timestamps. Missing days are filled with zeros to maintain consistent time series data.
- **Final calculation**: AFPU is calculated as Total Daily Fees ÷ Daily Active Users. The division handles cases where user counts are zero to avoid division errors. The result represents the average fee revenue generated per unique user on each day across all Index Coop products and supported chains.

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

Index CooperativeINDEX

Average fees per user (AFPU)

Average fees per user (AFPU)

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