Liquidity providers deposit funds into IPOR Protocol and receive trading fees and asset management yield (supply-side fees).

IPOR Protocol is a non-custodial exchange for interest rate swaps built on Ethereum. IPOR Protocol was founded by Darren Camas & Dimitar Dinev, and was launched in August 2022.

IPOR tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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IPOR Protocol

# IPOR Protocol Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average amount of fees generated per daily active user on the IPOR Protocol. This metric is calculated by dividing total daily fees (including both protocol revenue and supply-side fees) by the number of daily active users. AFPU helps assess the revenue efficiency per user and the economic value generated by each participant in the IPOR ecosystem. The calculation covers both IPOR Protocol v1 and v2 across interest rate swaps and asset management activities.

## 2. Data sources

- **IPOR Protocol smart contract events**: Parsed events from IPOR Protocol v1 and v2 contracts on Ethereum including swap operations (`OpenSwap`, `CloseSwap`, `SwapUnwind` events), liquidity pool redemptions (`Redeem`, `RedeemStEth` events), and asset management activities (`Deposit`, `Withdraw` events from Stanley contracts)
- **User interaction data**: User addresses extracted from swap trading events to identify daily active participants
- **Fee collection events**: Transaction logs containing fee amounts paid to the protocol treasury, liquidity providers, and IPOR publication fees
- **Asset management yield data**: Deposit and withdrawal events with exchange rate information from IPOR's integration with Aave and Compound protocols
- **Token metadata**: Contract addresses, symbols, and decimal precision for supported tokens (USDC, USDT, DAI, stETH)
- **End-of-day price feeds**: Daily closing prices for converting token amounts to USD equivalent values

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Count unique users interacting with IPOR Protocol each day
- **Logic**: Extract user addresses from IPOR swap events including `OpenSwap` and `CloseSwap` events from both v1 (MiltonDai, MiltonUsdc, MiltonUsdt contracts) and v2 (IporProtocolRouter, IporProtocolRouterV2 contracts) on Ethereum. All users are classified as 'Trader' type. Use HyperLogLog sketches to efficiently count distinct users while supporting aggregation across multiple dimensions including chain, user type, and product categories.
- **Key fields**: `buyer` and `liquidator` addresses from swap events, `block_timestamp` for daily grouping, user categorization as 'Trader'

### Component B: Protocol revenue calculation  
- **Purpose**: Calculate fees paid to IPOR Protocol treasury
- **Logic**: Extract revenue from swap events including opening fees paid to treasury (`openingFeeTreasuryAmount`) and IPOR publication fees (`iporPublicationFee`) from both v1 and v2 `OpenSwap` events. Also include income fees (`incomeFeeValue`) from `CloseSwap` events and unwind fees (`unwindFeeTreasuryAmount`) from v2 `SwapUnwind` events. Convert amounts from wei to token units by dividing by 10^18.
- **Key fields**: `openingFeeTreasuryAmount`, `iporPublicationFee`, `incomeFeeValue`, `unwindFeeTreasuryAmount`, `asset` token address

### Component C: Supply-side fees calculation
- **Purpose**: Calculate fees paid to liquidity providers and yields from asset management
- **Logic**: Combine two sources: 1) Trading fees to liquidity providers from `openingFeeLPAmount` in swap events and `redeemFee` from redemption events, 2) Asset management yields calculated from IPOR's deposits into Aave and Compound. For asset management, track exchange rates from deposit/withdrawal events and calculate yield as the difference between current and previous exchange rates multiplied by deposited amounts. Filter exchange rates between 0.15 and 1.5 (in 18-decimal format) to exclude invalid events.
- **Key fields**: `openingFeeLPAmount`, `redeemFee`, `exchangeRate`, `amount` from asset management events

### Component D: Asset management yield estimation
- **Purpose**: Estimate yields generated from IPOR's asset management strategy
- **Logic**: Track deposits and withdrawals from Stanley contracts (StanleyDai, StanleyUsdc, StanleyUsdt) with their exchange rates. Calculate running balances of deposited amounts and multiply by exchange rate appreciation between consecutive events. Only include positive yield where current exchange rate exceeds previous rate, indicating yield generation from Aave and Compound integrations.
- **Key fields**: `exchangeRate`, `amount` from deposit/withdrawal events, calculated yield based on rate differences

### Final aggregation
- **Combining components**: Sum protocol revenue and supply-side fees (including asset management yields) to get total daily fees. Aggregate user addresses using HyperLogLog to get daily active user counts.
- **Currency conversion**: Convert all fee amounts from native token units to USD using end-of-day token prices, maintaining precision throughout calculations
- **Time aggregation**: Group all data by daily timestamps using `timestamp_trunc` to day level, ensuring consistent daily boundaries
- **Final calculation**: Divide total daily fees (in USD) by daily active user count to get average fees per user. Apply zero-filling strategy for days with no activity to maintain complete time series data

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

IPOR ProtocolIPOR

Average fees per user (AFPU)

Average fees per user (AFPU)

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