Kwenta builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Kwenta trade futures against the liquidity provided by liquidity providers on Synthetix.

Kwenta is a non-custodial exchange for perpetual contracts built on Optimism. Kwenta was born out of the Synthetix community and launched in 2022.

KWENTA tokenholders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

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Kwenta

# Kwenta Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average daily trading fees generated per active user on Kwenta's perpetual trading platform. This metric answers the business question "How much revenue does each active trader generate on average?" and is calculated by dividing total daily trading fees by the number of daily active users. The calculation focuses specifically on perpetual futures trading activity conducted through Kwenta's interface on the Synthetix protocol.

## 2. Data sources

- **Blockchain events**: Parsed Optimism `PositionModified` events from Synthetix perpetual futures contracts (v1, v2, v21, v22 versions)
- **Tracking events**: Parsed Optimism `FuturesTracking` events from Synthetix contracts containing Kwenta-specific tracking codes
- **Market definition events**: Parsed Optimism `MarketAdded` events from Synthetix market manager contracts to identify synthetic asset markets
- **External data**: End-of-day token price feeds for USD conversion and sUSD token metadata for decimal handling
- **Transaction data**: Optimism blockchain transaction records linking trading events to user addresses

## 3. Step-by-step calculation

### Component A: User identification and daily active user counting

- **Purpose**: Identifies and counts unique daily active users who traded through Kwenta's interface
- **Logic**: Users are identified from Synthetix `PositionModified` events on Optimism, but only transactions that have corresponding `FuturesTracking` events with Kwenta's specific tracking code (`0x4b57454e54410000000000000000000000000000000000000000000000000000`) are included. This ensures only trades made through Kwenta's interface are counted. The process covers multiple Synthetix contract versions including FuturesMarket (v1), ProxyPerpsV2 (v2), ProxyPerpsV21 (v21), and ProxyPerpsV22 (v22). User addresses are extracted from the `account` parameter in `PositionModified` events and classified as "Trader" user type. Daily distinct users are counted using HyperLogLog aggregation, truncating timestamps to daily boundaries
- **Key fields**: `account` (trader address), `trackingCode` (Kwenta identifier), `block_timestamp` (for daily aggregation), `transaction_hash` (for event linking)

### Component B: Fee extraction and aggregation

- **Purpose**: Calculates total daily trading fees generated through Kwenta's perpetual trading platform
- **Logic**: Trading fees are extracted from the same `PositionModified` events used for user identification, applying the same Kwenta tracking code filter to ensure only Kwenta-specific trades are included. Fees are denominated in sUSD (synthetic USD) with token address `0x8c6f28f2f1a3c87f0f938b96d27520d9751ec8d9`. The fee amount comes from the `fee` parameter in each `PositionModified` event. Market identification is enhanced by joining with `MarketAdded` events to map market contract addresses to their corresponding synthetic asset symbols, with special handling for OP and GBP markets. All fees are summed daily after currency conversion and decimal correction
- **Key fields**: `fee` (trading fee amount), `market` (market contract address), `asset` (synthetic asset identifier), `block_timestamp` (for daily aggregation)

### Component C: Market definition and asset mapping

- **Purpose**: Maps perpetual market contract addresses to their underlying synthetic assets for proper categorization
- **Logic**: Market definitions come from Synthetix `MarketAdded` events across different contract versions (FuturesMarketManager, FuturesMarketManagerV21). These events contain market contract addresses and their corresponding asset identifiers. Special decoding logic handles specific markets: OP market (`0x4f50000000000000000000000000000000000000000000000000000000000000`) and GBP market (`0x4742500000000000000000000000000000000000000000000000000000000000`). Other assets are decoded by converting hex bytes to strings after trimming trailing zeros
- **Key fields**: `market` (contract address), `asset` (encoded asset identifier), decoded `synth_name` (asset symbol)

### Final aggregation

- **Combining components**: Daily fees are joined with daily active user counts using the `calculate_arpu` macro, which divides the total fees metric by the user DAU metric for each day
- **Currency conversion**: sUSD fees are converted to USD using end-of-day price feeds through the `convert_to_usd_and_correct_decimals` macro, which also handles decimal place normalization for the sUSD token
- **Time aggregation**: All events are truncated to daily boundaries using `timestamp_trunc(block_timestamp, day)` to ensure consistent daily aggregation across both user and fee calculations
- **Final calculation**: AFPU is calculated as total daily fees in USD divided by daily active user count, producing an average fee per user value for each day. The `fill_zeros` strategy is applied to ensure continuous daily time series data with zero values for days without activity

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

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Average fees per user (AFPU)

Average fees per user (AFPU)

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