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

Level Finance is a non-custodial exchange for spot and perpetual contracts built on BNB Chain. Level Finance was founded by an anonymous team and was launched in December 2022.

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

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Level Finance

# Level Finance Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on Level Finance, a derivatives trading platform. The metric is calculated by dividing the total daily protocol revenue by the number of daily active users. This provides insight into user monetization and revenue efficiency across Level Finance's spot and perpetual trading services on BSC and Arbitrum networks.

## 2. Data sources

The calculation uses the following raw data sources:
- **Blockchain event logs**: Parsed `Pool_Swap_event` logs from BSC and Arbitrum capturing spot trading activities and associated fees
- **Position management events**: Parsed `Pool_IncreasePosition_event`, `Pool_DecreasePosition_event`, and `Pool_LiquidatePosition_event` logs from BSC and Arbitrum capturing perpetual trading activities and fees
- **Fee configuration events**: Parsed `Pool_DaoFeeSet_event` logs from BSC and Arbitrum that define revenue splits between protocol and liquidity providers
- **Token metadata**: Token symbols, decimal places, and contract addresses for proper fee amount calculations
- **External price data**: End-of-day token price feeds for USD conversion of fee amounts

## 3. Step-by-step calculation

### Component A: Spot trading fees
- **Purpose**: Captures fees from spot trading activities (token swaps)
- **Logic**: Extracts `Pool_Swap_event` logs containing swap transactions. Records the `fee` amount, input token (`tokenIn`), output token (`tokenOut`), and user address (`sender`). Creates unique identifiers using block number and log index. Applies decimal correction based on token metadata and converts amounts to USD using end-of-day price feeds. Generates trading pair symbols by alphabetically ordering token symbols.
- **Key fields**: `fee` (raw fee amount), `tokenIn` and `tokenOut` (traded token addresses), `sender` (user address), `block_timestamp` (transaction timing)

### Component B: Perpetual trading fees  
- **Purpose**: Captures fees from leveraged perpetual trading activities
- **Logic**: Extracts position management events (`Pool_IncreasePosition_event`, `Pool_DecreasePosition_event`, `Pool_LiquidatePosition_event`) containing perpetual trades. Records the `feeValue` amount, `indexToken` address, and user account address. Applies decimal correction by dividing by 10^30. Joins with token metadata to get symbols and converts to USD using end-of-day price feeds.
- **Key fields**: `feeValue` (raw fee amount with 30 decimals), `indexToken` (perpetual token address), `account` (user address), `block_timestamp` (transaction timing)

### Component C: Fee split configuration
- **Purpose**: Determines what portion of trading fees becomes protocol revenue versus liquidity provider rewards
- **Logic**: Extracts `Pool_DaoFeeSet_event` logs that contain fee split updates. The `value` parameter (corrected by dividing by 10^10) represents the fraction between 0 and 1 that goes to protocol revenue. Creates time windows using the current update ID and the next update ID to apply the correct split ratio to fees occurring in each period.
- **Key fields**: `value` (fee split ratio), `block_timestamp` (when split was updated), unique `id` for time windowing

### Component D: Daily active users
- **Purpose**: Counts unique users who performed trading activities each day
- **Logic**: Aggregates user addresses from all trading events (spot swaps and perpetual position changes). Uses `sender` addresses from swap events and `account` addresses from position events. Applies daily timestamp truncation and uses HyperLogLog for efficient distinct user counting across chains and user types.
- **Key fields**: `user_address` (unique user identifiers), `block_timestamp` truncated to day boundaries, `chain` and `user_type` for segmentation

### Final aggregation
- **Combining components**: Spot and perpetual fees are combined into a single fees dataset, then multiplied by the appropriate fee split ratio based on timing to calculate protocol revenue. Revenue amounts are aggregated daily across all chains, tokens, and trading types.
- **Currency conversion**: All fee amounts are converted to USD using end-of-day token prices matched by token address, chain, and timestamp. Decimal corrections are applied before price multiplication.
- **Time aggregation**: Both revenue and user metrics use daily boundaries (timestamp truncated to day). Revenue is summed across all fee types and tokens, while users are deduplicated across all activity types.
- **Final calculation**: ARPU is calculated by dividing the total daily protocol revenue by the count of daily active users. Days with zero users result in null ARPU values, while days with zero revenue but active users result in zero ARPU.

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

Level FinanceLVL

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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