Stakers deposit funds into Lido and receive a return on investment in the form of staking rewards (supply-side fees).

Lido is a non-custodial staking protocol built on Ethereum and other blockchains. Lido was founded by a pseudo-anonymous team and launched in 2020.

LDO tokenholders own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Lido’s investors include ParaFi Capital, Bitscale Capital, KR1, etc.

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Liquid staking

Lido Finance

# Lido Finance Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is a metric that represents the fees paid per active user over a fixed 24-hour window. It is calculated as total daily fees divided by active users (daily), reflecting how much an individual user pays for the project’s service on a daily basis. Daily financial contributions are measured across Lido Finance's liquid staking products, including Lido Staked Ether and Lido Staked MATIC. Insight is provided into user transaction behavior and the economic efficiency of the protocol's liquid staking services.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Lido Staked Ether revenue tracking

- **Purpose**: Capture the protocol's share of staking rewards generated by Lido Staked Ether
- **Logic**: ERC-20 `Transfer` events of Lido Staked Ether are parsed to identify minting transactions. Transfers to the Lido DAO treasury address from the null address or the accounting contract are tracked. Prior to the activation of the Staking Router, these treasury transfers are multiplied by two to account for the 50/50 split between the treasury and node operators. After the Staking Router activation, transfers to the treasury are combined with transfers to specific staking module contracts (such as curated, SDVT, and CSM modules) to determine the total protocol revenue.
- **Key fields**: `block_timestamp`, `transaction_hash`, `value` (representing the transfer amount), and `token_address`

### Component B: Lido Staked MATIC revenue tracking

- **Purpose**: Capture the protocol's share of staking rewards generated by Lido Staked MATIC
- **Logic**: `DistributeRewardsEvent` events from `stMatic` contracts are parsed. The reward amount is extracted from the `amount` field of each event to determine the daily revenue generated by the Lido Staked MATIC product.
- **Key fields**: `block_timestamp`, `transaction_hash`, and `amount`

### Component C: Active user tracking

- **Purpose**: Identify the daily unique active users interacting with Lido Finance
- **Logic**: Active users are identified by parsing two primary on-chain interactions. First, depositors are identified from `Submitted` events emitted by `Lido Staked Ether` contracts, where the sender address is extracted. Second, withdrawers are identified from `WithdrawalRequested` events emitted by `WithdrawalQueueERC721` contracts, where the requestor address is extracted. These addresses are aggregated daily to calculate the total number of unique active users (daily).
- **Key fields**: `block_timestamp`, `transaction_hash`, `sender` (for depositors), and `requestor` (for withdrawers)

### Component D: USD conversion and fee scaling

- **Purpose**: Normalize revenue to USD and scale it to calculate total fees
- **Logic**: Daily revenue amounts for Lido Staked Ether and Lido Staked MATIC are normalized by decimal precision and multiplied by end-of-day asset prices. Total protocol fees are then calculated by multiplying the USD-denominated protocol revenue by ten, reflecting the protocol's 10% fee share of the total staking rewards generated.
- **Key fields**: `revenue`, `price_usd`, and `decimals`

### Component E: Average fees per user calculation

- **Purpose**: Calculate the final average fees paid per active user
- **Logic**: The total daily fees calculated in Component D are divided by the active users (daily) calculated in Component C. If the daily active user count is zero, the resulting average fees per user value is set to zero to prevent division-by-zero errors.
- **Key fields**: `fees`, `user_dau`, and `afpu`

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

Lido FinanceLDO

Average fees per user (AFPU)

Average fees per user (AFPU)

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