Creators & users sell NFTs on LooksRare. They receive royalties from secondary sales (supply-side fees).

LooksRare is a non-custodial NFT marketplace protocol built on Ethereum and launched in 2022.

LOOKS tokenholders own and govern the protocol. They currently take a cut of the total transaction fees paid by buyers (revenue).

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LooksRare

# LooksRare Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average daily fees earned per active user on the LooksRare NFT marketplace. This metric answers how much fee revenue LooksRare generates per user on a daily basis. The calculation divides total daily fees by the number of daily active users, providing insight into user monetization efficiency. LooksRare operated as both a standalone NFT marketplace and a marketplace aggregator through Seaport integration until February 2024.

## 2. Data sources

The AFPU calculation relies on several key blockchain data sources:

- **LooksRare exchange events**: Parsed Ethereum event logs from LooksRare Exchange v1 and v2 contracts, including `TakerBid`, `TakerAsk`, and `RoyaltyPayment` events
- **Seaport marketplace events**: Parsed Ethereum `OrderFulfilled` events from OpenSea's Seaport protocol versions 1.1 through 1.6, filtered for transactions where LooksRare receives fees
- **Seaport order matching events**: Parsed `OrdersMatched` events from Seaport contracts to identify aggregated transactions
- **End-of-day price feeds**: Token price data for USD conversion of fees collected in various cryptocurrencies
- **Token metadata**: Information about token decimal precision for accurate amount calculations

## 3. Step-by-step calculation

### Component A: LooksRare native exchange fees

- **Purpose**: Calculates fees from trades executed directly on LooksRare's native exchange contracts
- **Logic**: Extracts protocol fees and royalty payments from LooksRare Exchange v1 and v2 events. For v1 trades, protocol fees are calculated as 2% of the trade price from `TakerBid` and `TakerAsk` events. Royalty payments are joined from separate `RoyaltyPayment` events based on matching transaction hash, contract address, and token ID. For v2 trades, both protocol fees and royalty amounts are explicitly provided in the `feeAmounts` array within `TakerBid` and `TakerAsk` events
- **Key fields**: Trade price from `price` field, fee recipient addresses, token addresses from `currency` field, NFT collection addresses from `collection` field

### Component B: LooksRare seaport aggregator fees

- **Purpose**: Captures fees earned when LooksRare acts as a marketplace aggregator through Seaport
- **Logic**: Processes `OrderFulfilled` events from Seaport contracts v1.1 through v1.6, filtering for transactions where the hardcoded LooksRare fee recipient address `0x1838de7d4e4e42c8eb7b204a91e28e9fad14f536` appears in the consideration array. Extracts fee amounts from consideration items where LooksRare is the recipient and the item type indicates currency rather than NFT. Handles both individual orders and matched orders with different volume calculation logic
- **Key fields**: Fee amounts from consideration arrays, recipient addresses, token types to distinguish between currency and NFT items, offer and consideration amounts

### Component C: Daily active users calculation

- **Purpose**: Counts unique users participating in LooksRare marketplace activity
- **Logic**: Combines user addresses from multiple sources using HyperLogLog for efficient distinct counting. Includes makers and takers from LooksRare native exchange events, categorized as buyers or sellers based on trade direction. Also includes buyers and sellers from Seaport transactions where LooksRare receives fees. Users are deduplicated across all sources and aggregated by day
- **Key fields**: User addresses from `maker`, `taker`, `bidUser`, `askUser` fields, plus buyer and seller addresses derived from Seaport trade analysis

### Final aggregation

- **Combining components**: Daily fees are calculated by summing protocol fees and royalty amounts from both LooksRare native exchanges and Seaport aggregator transactions. Daily active users are counted using HyperLogLog across all trade participants from both sources
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds, with special handling for ETH addresses (converted to WETH addresses for price lookup)
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with missing days filled with zero values
- **Final calculation**: AFPU equals total daily fees in USD divided by the count of daily active users. The metric is calculated through the `calculate_arpu` macro which performs the division operation and applies the `finalize_metric_afpu` macro for standardization and zero-filling of missing days

Note: All LooksRare data is capped at February 21, 2024, reflecting the platform's operational timeline.

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

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Average fees per user (AFPU)

Average fees per user (AFPU)

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