Lenders can earn on Morpho using Morpho Vaults, noncustodial simple to use lending vaults that optimize yields for depositors. Borrowers can borrow any assets directly from Morpho Markets. Developers and businesses can use different parts of Morpho’s permissionless infrastructure to build any custom use case or application.

Morpho is an open, efficient, and resilient platform that allows anyone to earn yield and borrow assets. At the same time, developers or businesses can create markets, curate vaults, and build a range of applications on its flexible, immutable infrastructure.

MORPHO tokenholders own and govern the protocol. They currently do not take a cut of the interest and third-party token incentives earned by lenders (revenue). Morpho's investors include a16z, Coinbase Ventures, Semantic Ventures, etc.

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Morpho | Data breakdown

# Morpho Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is calculated as total daily fees divided by active users (daily) over a fixed 24-hour window. The daily cost incurred by an individual user to utilize the lending and borrowing services of Morpho is reflected by this metric. Total daily fees are divided by active users (daily) to generate the final value. User behavior, protocol monetization efficiency, and unit economics across Morpho Blue, Morpho Optimizers, and Morpho Midnight are analyzed using this metric.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Morpho Blue and Morpho Optimizers fee aggregation

- **Purpose**: Aggregates total daily fees generated across Morpho Blue and Morpho Optimizers.
- **Logic**: Interest accrued on Morpho Blue is extracted from `AccrueInterest` events from `Morpho Blue` contracts. Certain markets are excluded from fee calculations due to oracle issues that cause interest spikes, including specific PAXG/USDC, GMORPHO/cbBTC, K/USDC, and stdeUSD/USDC markets. For Morpho Optimizers, interest is calculated from Aave V3, Aave V2, and Compound integrations. Comp rewards are captured from `DistributedBorrowerComp` and `DistributedSupplierComp` events from `Comptroller` contracts. P2P and pool interest are calculated by applying daily index changes (pool supply index and P2P borrow index) to outstanding supply balances. All fee amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.
- **Key fields**: `interest`, `fee_shares`, `amount`, `pool_supply_index_delta`, `p2p_borrow_index_delta`, `outstanding_supplies`

### Component B: Active user tracking across Morpho products

- **Purpose**: Identifies the active users (daily) across all Morpho products.
- **Logic**: Distinct user addresses are identified from transaction senders or event parameters across multiple contracts. For Morpho Blue, user addresses are extracted from `Withdraw`, `Supply`, `Repay`, `Borrow`, `SupplyCollateral`, and `WithdrawCollateral` events from `Morpho Blue` contracts. For Morpho Optimizers, user addresses are extracted from `Withdrawn`, `Supplied`, `Repaid`, `Borrowed`, `SupplierPositionUpdated`, `BorrowerPositionUpdated`, `CollateralSupplied`, and `CollateralWithdrawn` events from optimizer contracts. For MetaMorpho Vaults, user addresses are extracted from `Deposit` and `Withdraw` events from `MetaMorphoVault` contracts. For Morpho Midnight, user addresses are extracted from `Take`, `SupplyCollateral`, `Repay`, `Withdraw`, and `WithdrawCollateral` events from `Midnight` contracts. Active users (daily) are calculated by aggregating these distinct addresses per day.
- **Key fields**: `user_address`, `from_address`, `block_timestamp`

### Component C: Average fees per user calculation

- **Purpose**: Computes the final average fees per user.
- **Logic**: The total daily fees calculated in Component A are divided by the active users (daily) calculated in Component B. If no active users or fees are recorded for a given day, the metric is populated with zero.
- **Key fields**: `fees`, `user_dau`, `afpu`

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

MorphoMORPHO

Average fees per user (AFPU)

Average fees per user (AFPU)

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