Risk accessors providers deposit funds into Nexus Mutual and receive insurance premiums from policyholders (currently as token incentives).

Nexus Mutual is a non-custodial insurance protocol built on Ethereum. Nexus Mutual was founded by Hugh Karp and launched in 2017.

NXM tokenholders own and govern the protocol. They currently take all of the total insurance premiums paid by policyholders (revenue). Nexus Mutual's investors include KR1, Kenetic, Version One Ventures, etc.

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Nexus Mutual

# Nexus Mutual Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Nexus Mutual insurance platform. This metric is calculated by dividing total daily revenue by the number of daily active users. ARPU provides insight into the revenue efficiency and user monetization effectiveness of the decentralized insurance protocol. The calculation combines insurance premium payments with user activity tracking to determine how much revenue each active user generates on average.

## 2. Data sources

The ARPU calculation relies on several key blockchain data sources:

- **Ethereum event logs**: Parsed `QuotationData_CoverDetailsEvent` events from Nexus Mutual v1 contracts containing premium payment details
- **Ethereum function traces**: Parsed `Cover_buyCover_function` call traces from Nexus Mutual v2 contracts with premium payment parameters
- **Ethereum event logs**: Parsed `Cover_CoverEdited_event` logs that identify insurance cover buyers and their activities
- **End-of-day price feeds**: Token price data for USD conversion of premium payments
- **CoinGecko daily market data**: Specialized pricing data for NXM tokens not covered by standard price feeds
- **Token metadata**: Configuration data mapping token IDs to contract addresses and decimal specifications

## 3. Step-by-step calculation

### Component A: Revenue calculation from insurance premiums

- **Purpose**: Calculate daily revenue from insurance premium payments across Nexus Mutual v1 and v2 contracts
- **Logic**: Extract premium payments from two sources: v1 `QuotationData_CoverDetailsEvent` events using `curr` (currency) and `premium` fields, and v2 `Cover_buyCover_function` calls using `paymentAsset` and `maxPremiumInAsset` parameters. Map token IDs to contract addresses using a hardcoded lookup table covering WETH, DAI, and NXM tokens. Apply decimal correction based on token specifications. Convert all amounts to USD using standard end-of-day price feeds, with special handling for NXM tokens using CoinGecko daily market data due to limited coverage in standard feeds. Aggregate premium payments by day to calculate total daily revenue.
- **Key fields**: `curr`/`paymentAsset` for token identification, `premium`/`maxPremiumInAsset` for payment amounts, `block_timestamp` for daily grouping

### Component B: Daily active users from cover activities

- **Purpose**: Count unique users who interact with insurance covers each day
- **Logic**: Extract user addresses from `Cover_CoverEdited_event` logs on Ethereum, identifying the `buyer` field as the user address. Filter for successful transactions and remove any duplicate entries. Group users by day using `block_timestamp` truncated to day boundaries. Apply HyperLogLog sketching for efficient distinct user counting across multiple dimensions (project-level, chain-level, user-type-level, product-level). Aggregate to project level to get total daily unique users.
- **Key fields**: `buyer` for user identification, `block_timestamp` for daily aggregation, `transaction_hash` for deduplication

### Final aggregation

- **Combining components**: Join daily revenue totals with daily active user counts by timestamp, ensuring both metrics exist for the same date range
- **Currency conversion**: All revenue is converted to USD before calculation using end-of-day price feeds or CoinGecko data for NXM tokens
- **Time aggregation**: Data is grouped by calendar day boundaries using timestamp truncation to day level
- **Final calculation**: ARPU equals total daily revenue divided by total daily active users, with the division handled by the `calculate_arpu` macro. Missing dates are filled with zero values to maintain data continuity across the time series.

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

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