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 revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per unique user of the Moonwell lending protocol. This metric is calculated by dividing total daily protocol revenue by the number of daily active users. ARPU helps assess the revenue efficiency and monetization effectiveness of the protocol by showing how much revenue each user generates on average. The calculation aggregates revenue from interest accruals, liquidation fees, and performance fees, then divides by the count of unique users who interacted with the protocol each day.

## 2. Data sources

The ARPU calculation relies on several types of blockchain data and external feeds:

- **Compound v2 fork events**: Parsed `AccrueInterest`, `LiquidateBorrow`, `Borrow`, `Mint`, `Redeem`, and `RepayBorrow` events from Base and Optimism chains for Moonwell markets
- **Configuration events**: `NewReserveFactor`, `NewLiquidationIncentive`, and `NewProtocolSeizeShare` events that set protocol parameters
- **Exchange rate updates**: Market-specific exchange rate changes for mToken to underlying token conversions
- **Morpho vault events**: `CreateMetaMorpho` and `SetFeeRecipient` events from Morpho v2 contracts, plus `ReservesAdded` events for performance fees
- **End-of-day token price feeds**: USD price data for revenue conversion
- **Token metadata**: Decimal precision and symbol information for proper amount calculations

## 3. Step-by-step calculation

### Component A: Daily active users calculation

- **Purpose**: Count unique users who interact with Moonwell lending markets each day
- **Logic**: Identifies user addresses from lending protocol interactions across Base and Optimism chains. Extracts user addresses from `Borrow` events (borrowers), `Mint` events (depositors), `Redeem` events (withdrawers), and `RepayBorrow` events (repayers). Filters events to only include those from verified Moonwell market contracts. Groups users by day and uses HyperLogLog for efficient distinct counting across multiple dimensions
- **Key fields**: `user_address` from event parameters, `block_timestamp` for daily grouping, `chain` for cross-chain aggregation, `user_type` for categorization

### Component B: Interest accrual revenue

- **Purpose**: Calculate protocol revenue from lending interest accruals
- **Logic**: Processes `AccrueInterest` events that occur when interest is calculated on lending markets. Extracts `interest_accruals` amounts and applies reserve factors to determine the protocol's share versus the supply-side share. Joins with market dimension data to get token addresses and decimals. Applies reserve factors from configuration events to split total interest between protocol revenue and supplier rewards. Converts token amounts to USD using end-of-day price feeds
- **Key fields**: `interestAccumulated` from events, `reserve_factor` from configuration, `token_address` and `decimals` for amount conversion

### Component C: Liquidation fee revenue  

- **Purpose**: Calculate protocol revenue from liquidation penalties
- **Logic**: Processes `LiquidateBorrow` events where borrower positions are liquidated. Extracts `seizeTokens` amounts representing collateral seized from borrowers. Applies exchange rates to convert mToken amounts to underlying token amounts. Calculates protocol fees using liquidation incentive factors and protocol seize factors. The protocol receives a portion of the liquidation penalty while liquidators and suppliers receive the remainder. Converts calculated fee amounts to USD
- **Key fields**: `seizeTokens` from events, `liquidation_incentive_mantissa` and `protocol_seize_mantissa` from configuration, `exchange_rate` for mToken conversion

### Component D: Morpho performance fees

- **Purpose**: Include performance fees from Moonwell's Morpho vault integrations  
- **Logic**: Identifies `ReservesAdded` events where the benefactor is a known Moonwell fee recipient address from Morpho vault configurations. These events represent performance fees collected by Moonwell-branded Morpho vaults. Extracts fee amounts and converts to USD using price feeds. Only includes events from Base chain where Morpho vaults are deployed
- **Key fields**: `addAmount` from events, `benefactor` address matching fee recipients, `token_address` for price conversion

### Final aggregation

- **Combining components**: All revenue components (interest accruals, liquidation fees, Morpho performance fees) are summed by day and chain to create total daily revenue. User counts are aggregated using HyperLogLog to handle overlapping users across different interaction types and chains
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day token price feeds. Token amounts are adjusted for decimal precision before price conversion
- **Time aggregation**: Both revenue and user metrics use daily boundaries based on block timestamps truncated to day level
- **Final calculation**: ARPU equals total daily revenue in USD divided by the count of unique daily active users. Days with zero users result in null ARPU values, while days with zero revenue but active users result in zero ARPU

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

MoonwellWELL

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape