LayerZero uses a decentralized network of Validator Nodes to facilitate secure and fast communication between different blockchains.

LayerZero allows users to send and receive messages between different blockchains, and to bridge tokens between different blockchains.

LayerZero is a cross-chain interoperability protocol that enables secure and fast communication between different blockchains.

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LayerZero

# LayerZero Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is calculated as the average amount of fees paid by an individual active user of LayerZero on a daily basis. Fees generated through cross-chain messaging on LayerZero V1 and LayerZero V2, as well as asset bridging via Stargate, are incorporated into the metric. Insight into the average cost of utilizing LayerZero's interoperability infrastructure is provided by this ratio, which is used to assess the economic intensity of user activity.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric
- **Blockchain events**: `DVNFeePaid` and `ExecutorFeePaid` events from `SendUln301` and `SendUln302` contracts, `send` function calls and `PacketDelivered` events from `EndpointV1` and `EndpointV2` contracts, `Swap` events from `Pool` contracts, and `SendToChain`, `OFTSent`, and `OFTReceived` events from `OFT` contracts, covering Ethereum, Arbitrum, Base, Polygon, and 27 other chains
- **External data**: End-of-day price feeds for native gas assets and bridged assets

## 3. Step-by-step calculation

### Component A: LayerZero V1 and LayerZero V2 fee extraction

- **Purpose**: Fees paid for cross-chain messaging and infrastructure services are captured.
- **Logic**: Fee data is aggregated from multiple sub-components across LayerZero V1 and LayerZero V2. `DVNFeePaid` events are parsed from `SendUln301` and `SendUln302` contracts to capture payments to Decentralized Verifier Networks. `ExecutorFeePaid` events are parsed to capture message execution costs. For LayerZero V1 activity prior to February 5, 2024, destination fees are estimated by subtracting airdropped native amounts from the total message value in `send` function calls from `EndpointV1` contracts.
- **Key fields**: `fees`, `fees` (array), `fee`, `value` (for V1 estimations), and `adapterparams`.

### Component B: Stargate fee collection

- **Purpose**: Fees generated through the Stargate bridging protocol are captured.
- **Logic**: Fees from Stargate V1 are extracted by parsing `Swap` events from `Pool` contracts, where liquidity provider fees and protocol fees are summed per transaction. For Stargate V2, fees are calculated as the daily delta of the cumulative fee accrual tracked in protocol state records.
- **Key fields**: `lp_fee_amount`, `protocol_fee_amount`, and `fee_accrual`.

### Component C: Active user identification

- **Purpose**: The daily distinct set of users interacting with the protocol is determined.
- **Logic**: Active users are identified by aggregating unique wallet addresses across all products. Transaction senders identified from `send` function calls in `EndpointV1` and `EndpointV2` contracts, and message receivers identified from `PacketDelivered` events, are included. Users of the OmniChain Fungible Token (OFT) standard are identified from `SendToChain`, `OFTSent`, and `OFTReceived` events. Stargate users are identified from `Swap` events. A distinct count of addresses is performed per day at the project level.
- **Key fields**: `from_address`, `receiver`, `from`, `toAddress`, and `fromAddress`.

### Component D: USD normalization and final AFPU calculation

- **Purpose**: Disparate fee assets are normalized to USD and the final daily ratio is calculated.
- **Logic**: Raw fee amounts are normalized by decimal precision and multiplied by end-of-day asset prices. Total daily fees across all products (LayerZero V1, LayerZero V2, and Stargate) are summed and then divided by the total number of distinct active users (daily) for the entire project. The average fees paid per user within a 24-hour UTC window are represented by the resulting value.
- **Key fields**: `fees`, `user_dau`, and `price_usd`.

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

LayerZeroZRO

Average fees per user (AFPU)

Average fees per user (AFPU)

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