Lenders deposit funds into Moonwell and receive interest payments from borrowers (supply-side fees).

Moonwell is a non-custodial lending protocol built on multiple blockchains.

WELL tokenholders own and govern the protocol. They currently take a cut of the total interest + liquidation fees paid by borrowers (revenue).

github

twitter

discord

website

Lending

Moonwell

# Moonwell Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average daily fee revenue generated per active user on the Moonwell lending protocol. This metric answers the business question: "How much fee revenue does each active user generate on average?" The calculation divides total daily fees by the number of daily active users, providing insight into user monetization efficiency. The metric aggregates fees from interest accruals, liquidations, and Morpho vault performance fees across Base and Optimism networks.

## 2. Data sources

The AFPU calculation relies on several categories of raw blockchain data:

- **Lending protocol events**: Compound V2 fork event logs from Base and Optimism networks, specifically `AccrueInterest`, `LiquidateBorrow`, `Borrow`, `Mint`, `Redeem`, and `RepayBorrow` events from verified Moonwell market contracts
- **Protocol configuration events**: Parameter update events including `NewReserveFactor`, `NewProtocolSeizeShare`, and `NewLiquidationIncentive` events that track fee-splitting mechanisms over time  
- **Reserve management events**: `ReservesAdded` events on Base that capture performance fees from Morpho vault integrations
- **Morpho vault events**: MetaMorpho vault creation and fee recipient configuration events from Base to identify fee splitter addresses
- **Exchange rate state data**: Historical exchange rates between underlying tokens and corresponding mTokens from Moonwell's state management system
- **Market configuration data**: Market definitions mapping mToken addresses to underlying token addresses with decimal precision metadata
- **Token metadata**: Token symbols, decimal precision, and contract addresses for proper amount calculations
- **End-of-day price feeds**: Daily USD price data for all tokens involved in fee calculations

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Identifies and counts unique users interacting with Moonwell lending markets each day
- **Logic**: Extracts user addresses from four types of lending events on Base and Optimism: borrowing (`Borrow` events capturing `borrower` addresses), depositing (`Mint` events capturing `minter` addresses), withdrawing (`Redeem` events capturing `redeemer` addresses), and repaying (`RepayBorrow` events capturing `payer` addresses). Events are filtered to only include verified Moonwell market contract addresses. User addresses are truncated to daily timestamps and deduplicated using HyperLogLog aggregation to efficiently count distinct users across multiple dimensions including chain, user type, and product segments.
- **Key fields**: `user_address` for unique user identification, `block_timestamp` for daily aggregation, `chain` for network-specific tracking, `user_type` for categorizing interaction types

### Component B: Interest accrual fees calculation  
- **Purpose**: Calculates protocol fees generated from lending interest accruals
- **Logic**: Processes `AccrueInterest` events from Moonwell markets containing total interest accumulated per event. Joins with reserve factor dimension data to determine the protocol's fee percentage (reserve factor) versus the portion paid to lenders. Multiplies accumulated interest by the reserve factor to calculate protocol revenue, and by (1 - reserve factor) to calculate supply-side fees paid to lenders. Adjusts amounts using token decimal precision and converts to USD using end-of-day price feeds.
- **Key fields**: `interestAccumulated` for raw interest amounts, `reserve_factor` for fee split percentages, `token_address` for price lookup, `account_address` for market identification

### Component C: Liquidation fees calculation
- **Purpose**: Calculates protocol fees generated from liquidation events  
- **Logic**: Processes `LiquidateBorrow` events containing seized collateral amounts. Joins with liquidation incentive rates, protocol seize shares, exchange rates, and market metadata. Calculates the protocol's portion using seized tokens × protocol seize share × exchange rate to convert mToken amounts to underlying token amounts. Also calculates supply-side fees as seized tokens × (liquidation incentive - protocol seize share) × exchange rate. Adjusts for decimal precision and converts final amounts to USD.
- **Key fields**: `seizeTokens` for collateral amounts, `liquidation_incentive_mantissa` for total liquidation bonus, `protocol_seize_mantissa` for protocol's share, `exchange_rate` for mToken conversion

### Component D: Morpho performance fees calculation
- **Purpose**: Captures performance fees from Moonwell's Morpho vault integrations
- **Logic**: Identifies `ReservesAdded` events on Base where the benefactor address matches known Moonwell fee splitter addresses (derived from MetaMorpho vault creation events with "moonwell" in the name). These events represent performance fees transferred to Moonwell from Morpho vault strategies. Extracts the added amount, adjusts for token decimals, and converts to USD using end-of-day price feeds.
- **Key fields**: `addAmount` for fee amounts, `benefactor` for fee source validation, `token_address` for price conversion

### Final aggregation
- **Combining components**: All three fee components (interest accrual fees, liquidation fees, and Morpho performance fees) are summed together for each day, with fees split into protocol revenue and supply-side portions where applicable, then combined into total fees
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds matched by token address and date, with decimal adjustments applied based on each token's precision (typically 18 decimals but varies by token)
- **Time aggregation**: Events are aggregated to daily boundaries using timestamp truncation, with dimension data (reserve factors, liquidation parameters, exchange rates) filled forward to ensure complete historical coverage for all calculation dates
- **Final calculation**: Total daily fees (in USD) are divided by the count of daily active users (calculated using HyperLogLog aggregation) to produce the average fees per user, with missing days filled with zero values to maintain complete time series data

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

MoonwellWELL

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape