Liquidity providers deposit funds into KyberSwap and receive trading fees from traders (supply-side fees).

KyberSwap is a non-custodial exchange protocol & aggregator built on Ethereum and other adjacent blockchains. KyberSwap was founded by Loi Luu and Victor Tran in 2017.

KNC tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Kyber Network raised $52 million in an ICO in 2017.

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KyberSwap

# KyberSwap Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) is measured as the average amount of revenue generated per daily active user on KyberSwap. This metric is calculated by dividing total daily revenue by the total number of active users (daily). Insight into monetization efficiency and user value across KyberSwap's DEX aggregator and AMM exchange services is provided.

## 2. Data sources

Multiple blockchain data sources are combined for the ARPU calculation:

- **Blockchain events**: `Swap`, `Flash`, `Fee`, `PoolCreated`, and `Swapped` events from KyberSwap contracts, `KyberTrade` and `ExecuteTrade` events from KyberNetwork contracts, and transaction records are captured across Ethereum, Arbitrum, Avalanche, Base, Polygon, and 11 other chains.
- **External data**: End-of-day token price feeds are used for USD conversion, and token metadata including symbols and decimal precision is applied.

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Total daily revenue from KyberSwap operations is calculated.
- **Logic**: Revenue is derived from two main sources. First, direct fees collected from DEX aggregator operations and legacy Kyber Network activities are extracted from parsed `Fee` and `FeeDistributed` events. These include platform fees, rewards, and aggregator routing fees. Second, trading fees from AMM operations are calculated by taking a percentage share of trading volume. Trading volume is computed from `Swap` events by converting token amounts using decimal corrections, applying end-of-day USD prices, and taking the minimum of the two token values to avoid price manipulation. The protocol's revenue share was changed on August 8, 2023, from 10% to 16% of trading fees.
- **Key fields**: Revenue sources include `totalFee` from aggregator events, `platformFeeWei` and `rewardWei` from legacy fee events, and calculated percentages from `deltaQty0`, `deltaQty1`, `amount0In/Out`, and `amount1In/Out` swap amounts.

### Component B: active users (daily) calculation

- **Purpose**: Unique active users (daily) across all KyberSwap services are counted.
- **Logic**: Users are identified from three activity types. First, AMM traders are identified from `Swap` events on Kyber V2 and V3 pools across all supported chains. Second, flash loan users are identified from `Flash` events on V3 pools. Third, aggregator users are identified from `Swapped` events on MetaAggregationRouter contracts. All users are classified as 'Trader' type. User addresses are extracted from transaction `from_address` fields. HyperLogLog (HLL) algorithms are used for efficient distinct counting, and breakdowns by chain, user type, and product dimensions are supported.
- **Key fields**: User identification is based on `from_address` fields from transaction records linked to swap, flash, and aggregator events via `transaction_hash`.

### Component C: Trading pair and token processing

- **Purpose**: Trading data is normalized and USD conversion is enabled.
- **Logic**: Trading pairs are established from `PoolCreated` events that define `token0`, `token1`, and `swapFeeUnits` for each pool. Decimal precision for amount normalization is provided by token metadata. Native tokens (identified by `0xeeee...eeee` addresses) are substituted with corresponding wrapped token addresses for consistent pricing. Fee tiers are extracted from V3 factory events or calculated separately for V2 pools.
- **Key fields**: Key data includes `pool` addresses, `token0` and `token1` addresses, `swapFeeUnits` for fee tiers, and token `decimals` for normalization.

### Final aggregation

- **Combining components**: Daily revenue is aggregated across all revenue sources (direct fees plus calculated trading fee shares) and grouped by day. Active users (daily) are counted distinctly across all activity types using HLL merge operations and grouped by day.
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds. Token amounts are first normalized by dividing by 10 raised to the token's decimal precision, then multiplied by the corresponding USD price.
- **Time aggregation**: All events are truncated to day boundaries using timestamp truncation. Missing days in the time series are filled with zero values for both revenue and user counts.
- **Final calculation**: ARPU is calculated as total daily revenue divided by total active users (daily). The average USD revenue generated per unique user each day is represented by the result. Null ARPU values are returned for days with zero users rather than performing division by zero.

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

KyberSwapKNC

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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