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 revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user of Index Coop products. This metric is calculated by dividing the total daily revenue (in USD) by the number of daily active users. ARPU helps assess the monetization efficiency and user value generation of Index Coop's tokenized index products across Ethereum and Polygon networks. The calculation captures both direct transaction fees and ongoing streaming fees charged to users.

## 2. Data sources

The ARPU calculation relies on several blockchain and external data sources:

- **SetProtocol smart contract events**: Parsed `StreamingFeeUpdated`, `SetTokenIssued`, and `SetTokenRedeemed` events from both `DebtIssuanceModule` and `BasicIssuanceModule` contracts on Ethereum and Polygon networks
- **Index Coop product configuration**: Hardcoded product definitions including token addresses, initial fee tiers, launch dates, and product categorization for DPI, MVI, DATA, BED, dsETH, GMI, icETH, ETH2x-FLI, BTC2x-FLI, JPG, and other Index Coop tokens
- **End-of-day token price feeds**: USD price data for accurate currency conversion of fee amounts
- **Token metadata**: Decimal precision information for proper token amount normalization
- **Blockchain transaction data**: Transaction hashes, block timestamps, and log indices for event tracking and deduplication

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate total daily revenue from Index Coop products in USD
- **Logic**: Revenue combines two fee types: direct transaction fees and streaming fees. Direct fees are extracted from the `managerFee` parameter in `SetTokenIssued` and `SetTokenRedeemed` events from both `DebtIssuanceModule` and `BasicIssuanceModule` contracts. Streaming fees are calculated by multiplying deployed capital by the daily fee rate, where the daily rate equals the annual fee tier divided by 365. Deployed capital is tracked as cumulative net token issuances (total issuances minus total redemptions) for each token address. Fee tiers are maintained through `StreamingFeeUpdated` events and initial product configurations, with forward-filling applied to ensure continuous fee rate application. All fee amounts are converted from token denominations to USD using end-of-day price feeds
- **Key fields**: `managerFee` from issuance/redemption events, `newStreamingFee` from fee update events, `quantity` for token amounts, `setToken` for product identification, `to` and `redeemer` for user identification

### Component B: Daily active user calculation  
- **Purpose**: Count unique users interacting with Index Coop products each day
- **Logic**: Daily Active Users are identified from `SetTokenIssued` and `SetTokenRedeemed` events by extracting user addresses from the `to` parameter (for minters) and `redeemer` parameter (for burners). The calculation uses HyperLogLog (HLL) aggregation to accurately count distinct users across multiple event types and prevent double-counting of addresses that perform multiple actions on the same day. User counting spans both Ethereum and Polygon networks, capturing interactions with all Index Coop products. The HLL aggregation allows for accurate distinct counting while maintaining computational efficiency for large datasets
- **Key fields**: `to` addresses from token issuance events, `redeemer` addresses from redemption events, `setToken` for product association, `block_timestamp` for daily aggregation

### Final aggregation
- **Combining components**: Revenue and user metrics are calculated independently for each day, then joined on the timestamp dimension for ARPU calculation
- **Currency conversion**: All token-denominated fees are converted to USD using end-of-day price feeds, applied after decimal correction based on token metadata
- **Time aggregation**: Both metrics use daily boundaries based on block timestamps truncated to day level, ensuring consistent temporal alignment
- **Final calculation**: Daily ARPU equals total daily revenue divided by the count of daily active users, with zero-filling applied for days with no activity to maintain continuous time series. The result represents the average USD revenue generated per active user on each day across all Index Coop products and supported networks

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

Index CooperativeINDEX

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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