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 revenue per user (ARPU) Methodology

## 1. Overview

ARPU measures the average revenue generated per daily active user on the LooksRare NFT marketplace. This metric is calculated by dividing daily revenue by daily active users (DAU). The calculation encompasses LooksRare's native exchange protocols (v1 and v2) as well as revenue from Seaport transactions where LooksRare acts as a fee recipient. This provides a comprehensive view of LooksRare's revenue efficiency across all trading channels.

## 2. Data sources

The ARPU calculation draws from several key blockchain data sources:

- **LooksRare exchange events**: Parsed `TakerBid` and `TakerAsk` events from LooksRare v1 Exchange contract capturing direct marketplace trades and protocol fees
- **LooksRare v2 events**: Parsed `TakerBid` and `TakerAsk` events from LooksRare v2 ExchangeV2 contract with structured fee data
- **LooksRare royalty events**: Parsed `RoyaltyPayment` events from LooksRare v1 Exchange providing additional fee context
- **Seaport trading events**: Parsed `OrderFulfilled` events from Seaport versions 1.1 through 1.6 where LooksRare receives fees
- **Seaport matching events**: Parsed `OrdersMatched` events and function calls (`matchAdvancedOrders`, `matchOrders`) from Seaport versions 2-6 for identifying complex trade scenarios
- **End-of-day price feeds**: Token price data for USD conversion of revenue amounts
- **Token metadata**: Token decimal and symbol information for proper amount calculations

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Calculate total daily protocol fees earned by LooksRare across all trading channels
- **Logic**: Revenue is collected from three primary sources. For LooksRare v1 exchange, protocol fees are calculated by applying a hardcoded 2% fee rate to the `price` field from `TakerBid` and `TakerAsk` events. For LooksRare v2 exchange, protocol fees are extracted directly from the `feeAmounts` array at index 2 in `TakerBid` and `TakerAsk` events. For Seaport integration, fees are identified by filtering `OrderFulfilled` events where the fee recipient address matches LooksRare's fee collection address `0x1838de7d4e4e42c8eb7b204a91e28e9fad14f536`. The system processes consideration arrays to identify fee payments to this specific address
- **Key fields**: Uses `price` from v1 events, `feeAmounts[2]` from v2 events, and `consideration.amount` from Seaport events where recipient matches LooksRare's address. All amounts are converted from wei to standard units using token decimals, then converted to USD using end-of-day price feeds

### Component B: Daily active users calculation

- **Purpose**: Count unique users interacting with LooksRare across all trading channels each day
- **Logic**: Users are identified from multiple event sources and roles. From LooksRare v1 exchange events, both `maker` and `taker` addresses are extracted from `TakerBid` and `TakerAsk` events, representing sellers and buyers respectively. From LooksRare v2 exchange events, users are extracted from `bidUser`, `askUser`, and `feeRecipients[0]` fields. From Seaport transactions where LooksRare receives fees, users are identified as `nft_buyer_address` and `nft_seller_address` from the filtered trade data. The system uses HyperLogLog sketches to efficiently count distinct users while supporting multiple dimensional breakdowns
- **Key fields**: Extracts `maker`, `taker`, `bidUser`, `askUser`, `feeRecipients[0]`, `nft_buyer_address`, and `nft_seller_address` fields, then applies HLL counting with 15-bit precision for distinct user aggregation

### Component C: Seaport trade processing

- **Purpose**: Process complex Seaport transactions to identify LooksRare-related trades and extract relevant fee and user data
- **Logic**: The system processes Seaport `OrderFulfilled` events by flattening offer and consideration arrays to identify trade components. It filters transactions where LooksRare's fee address appears as a recipient in either the main recipient field or within consideration recipient fields. The logic handles different token types (ETH, ERC20, ERC721, ERC1155) and identifies whether array items represent NFTs, payment tokens, or fees based on item type. For matched orders, special logic applies different amount calculation rules. Fee amounts are specifically extracted where the consideration recipient matches LooksRare's address and the item type indicates a payment token
- **Key fields**: Processes `offer`, `consideration` arrays with `itemType`, `token`, `amount`, and `recipient` fields. Uses `orderHash` for transaction grouping and `recipient` fields for LooksRare fee identification

### Final aggregation

- **Combining components**: Daily revenue totals are calculated by summing all protocol fees from LooksRare v1, v2, and Seaport sources for each day. Daily active users are counted using HLL merge operations across all user identification sources to avoid double-counting users who appear in multiple transaction types
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day token price feeds. ETH amounts are handled by converting null or zero addresses to the WETH contract address for price lookup. Token amounts are adjusted for decimals based on token metadata before USD conversion
- **Time aggregation**: All events are aggregated to daily boundaries using timestamp truncation. Missing days are filled with zero values for both revenue and user counts to ensure continuous time series
- **Final calculation**: ARPU is calculated by dividing the daily revenue (in USD) by the daily active user count. The division uses safe mathematical operations to handle edge cases where user count might be zero. The result represents the average USD revenue generated per active user on each day

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

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