Overcollateralized borrowers deposit funds into Sky and receive DAI stablecoin.

Sky is a non-custodial stablecoin protocol built on Ethereum. Sky (previously MakerDAO) was founded by Rune Christensen and launched in 2015.

SKY tokenholders own and govern the protocol. They currently take all of the total interest and PSM fees paid by borrowers (revenue). Sky’s investors include a16z, Polychain, IOSG Ventures, etc.

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Sky | Fees and revenues breakdown

# Sky Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) is defined as the average daily revenue generated per active user on the Sky protocol. This metric is calculated by dividing the total daily revenue by the number of active users (daily). Insight into user monetization efficiency and the ability of the protocol to generate revenue from its user base is provided. Revenue is composed of stability fees from borrowing, liquidation income, trading fees from the Peg Stability Modules, and various interest payments from real-world assets and direct deposit modules.

## 2. Data sources

- **Blockchain events**: `Bark`, `Bite`, and `Fees` events from `Dog`, `Cat`, and `D3MHub` contracts, `JAR_Toss` events from various RWA and PSM contracts, USDS ERC-20 `Transfer` events, and `frob`, `grab`, `move`, `suck`, `burn`, `mint`, and `drip` function calls from `Vat`, `DAI`, and `Jug` contracts on Ethereum
- **External data**: End-of-day price feeds for assets and asset metadata

## 3. Step-by-step calculation

### Component A: active users (daily) calculation

- **Purpose**: Identification and counting of distinct users interacting with Sky protocol daily
- **Logic**: Users are identified from successful `frob` function calls to the `Vat` contract and are categorized based on interaction type. Users are categorized as borrowers when positive debt changes are observed, repayers for negative debt changes, depositors for positive collateral changes, and withdrawers for negative collateral changes. Traders are identified through interactions with Peg Stability Module collateral types. User addresses are extracted from transaction records via the transaction origin. Users are aggregated to calculate daily distinct active addresses across all interaction types.
- **Key fields**: `dart` (debt change), `dink` (collateral change), `from_address` (user address), `collateral_id` (collateral type identifier)

### Component B: Revenue calculation from multiple sources

- **Purpose**: Calculation of total daily revenue from all Sky protocol income streams
- **Logic**: Revenue is aggregated from several sources. Stability fees are calculated by tracking `drip` function calls that update interest rates, which are then applied to outstanding debt. Interest accrued is determined by multiplying the rate difference by the outstanding debt amount, which is tracked through `frob` and `grab` function calls. Real-world asset income is captured via `JAR_Toss` events from RWA and PSM contracts. Interest from direct deposit modules (D3M) is identified through DAI flows and `Fees` events. Sky Stars settlement revenue is derived from debt increases in `grab` function calls for allocator collaterals, adjusted by subtracting USDS token transfers representing payments to Spark subproxy addresses. Liquidation income is determined by combining seized collateral value with settled auction debt from `Bark` and `Bite` events, with system accounts being excluded. Trading fees are captured from DAI flows associated with Peg Stability Module interactions. An adjustment is also applied to deduct Spark's share of interest accruals for specific historical periods. All components are normalized, converted to USD using end-of-day price feeds, and aggregated by day.
- **Key fields**: `interest_accrued`, `sky_revenue_amount`, `amount` (fees and liquidations), `token_address`

### Component C: Final aggregation and ARPU calculation

- **Purpose**: Combination of components and calculation of the final ARPU metric
- **Logic**: All revenue sources are summed by day after USD conversion. Active users (daily) are counted distinctly across all user interaction types. Token amounts are converted to USD using end-of-day price feeds, with amounts normalized by decimal precision. daily granularity is maintained with UTC day boundaries. ARPU is calculated by dividing total daily revenue in USD by the daily active user count. Missing values are zero-filled to maintain consistent time series data.
- **Key fields**: `revenue`, `user_dau`, `arpu`

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

SkySKY

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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