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 revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the daily revenue generated per active user on the Kwenta perpetual trading platform. This metric answers the business question: "How much revenue does each active trader generate on average per day?" The calculation divides daily revenue by daily active users, providing insight into user monetization efficiency. However, Kwenta's current implementation sets revenue to zero, resulting in an ARPU of $0, likely reflecting that Kwenta operates as a frontend interface to Synthetix without directly capturing trading fees as revenue.

## 2. Data sources

The ARPU calculation relies on several key data sources:

- **Synthetix perpetual trading events**: Parsed `PositionModified` events from Synthetix v1 and v2 perpetual futures contracts on Optimism, capturing trade executions and associated fees
- **Kwenta tracking events**: `FuturesTracking` and `PerpsTracking` events containing Kwenta's specific tracking code to isolate platform-specific activity from broader Synthetix ecosystem usage
- **Market metadata**: `MarketAdded` events from Synthetix FuturesMarketManager contracts providing market identifiers and synthetic asset mappings
- **Token price data**: End-of-day USD price feeds for sUSD (Synthetix USD) to enable currency conversion
- **Token metadata**: sUSD token contract information for decimal precision handling

## 3. Step-by-step calculation

### Component A: Fee extraction and revenue calculation
- **Purpose**: Extract trading fees from perpetual position modifications to calculate daily revenue
- **Logic**: The system processes `PositionModified` events from multiple Synthetix contract versions (v1 FuturesMarket, v2 ProxyPerpsV2/V21/V22) on Optimism. Each position modification event contains a `fee` field representing trading costs in sUSD. Events are filtered using a whitelist approach - only transactions containing corresponding `FuturesTracking` or `PerpsTracking` events with Kwenta's specific tracking code are included. This isolates Kwenta platform usage from direct Synthetix interactions. Fees are converted from sUSD to USD using end-of-day price feeds and adjusted for 18-decimal precision. However, the final revenue model overrides all calculated fee values to zero.
- **Key fields**: `fee` (trading fee in sUSD), `account` (trader address), `block_timestamp` (transaction timing), `transaction_hash` (transaction identifier), `trackingCode` (platform identifier)

### Component B: Daily active user counting
- **Purpose**: Count distinct users performing trading activities each day
- **Logic**: The system extracts user addresses from the same `PositionModified` events used for fee calculation, applying identical tracking code filtering to ensure consistency. User addresses are extracted from the `account` field in position modification events. The system counts distinct users per day using HyperLogLog aggregation for computational efficiency. Users are classified as 'Trader' type within the derivatives market sector and perpetual business segment. The calculation supports multiple dimensional breakdowns including project-level, chain-level, user-type-level, and product-level aggregations.
- **Key fields**: `account` (user address), `block_timestamp` (activity timing), `transaction_hash` (transaction identifier)

### Component C: Market identification
- **Purpose**: Provide context for trading activity through market metadata
- **Logic**: Market information comes from `MarketAdded` events in Synthetix FuturesMarketManager contracts. These events map market addresses to underlying synthetic assets. Special handling exists for OP and GBP markets with hardcoded identifiers, while other markets decode asset symbols from hexadecimal representations. This data provides trading pair context but doesn't directly affect ARPU calculation.
- **Key fields**: `market` (market contract address), `asset` (underlying synthetic asset identifier)

### Final aggregation
- **Combining components**: The ARPU calculation uses the `calculate_arpu` macro which divides daily revenue by daily active users for each day/chain/product combination. Revenue data comes from the fee extraction component (set to zero), while user counts come from the DAU calculation component.
- **Currency conversion**: All monetary values are converted to USD using end-of-day price feeds, with sUSD fees adjusted for 18-decimal precision before conversion
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day level, ensuring consistent time series alignment between revenue and user metrics
- **Final calculation**: ARPU equals daily revenue divided by daily active users. Given revenue is set to zero, the result is consistently $0 per user per day. The calculation includes zero-filling for missing data points to maintain continuous time series and applies chain availability filters to ensure data completeness across supported networks.

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

KwentaKWENTA

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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