Liquidity providers deposit funds into Osmosis and receive trading fees from traders (supply-side fees).

Osmosis is a non-custodial exchange protocol built on Cosmos ecosystem. Osmosis was launched in June 2021.

OSMO token holders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

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Osmosis

# Osmosis Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average amount of fees generated per daily active user on the Osmosis decentralized exchange. This metric answers the question "How much fee revenue does each active user generate on average?" and is calculated by dividing total daily fees collected by the number of unique daily active users. The metric provides insight into user monetization and revenue efficiency for the Osmosis AMM protocol.

## 2. Data sources

- **Osmosis fee collection data**: Raw fee collection records from Osmosis AMM operations, capturing `fees_spent` amounts from trading activities and other protocol operations
- **Osmosis transaction sender data**: Daily counts of unique transaction sender addresses on the Osmosis blockchain, representing users who initiated at least one transaction per day
- **External processing**: Data is collected and processed through the osmosis_scraper system which aggregates blockchain activity into daily metrics

## 3. Step-by-step calculation

### Component A: Fee collections
- **Purpose**: Calculates total daily fees collected by the Osmosis protocol
- **Logic**: Raw fee data from Osmosis AMM operations is extracted and classified as Exchange AMM business line fees within the exchanges market sector and dex business segment. The `fees_spent` amounts are converted to high-precision numeric format and aggregated by day. All fees are attributed to version 'v1' of the protocol.
- **Key fields**: `timestamp` for daily granularity, `fees_spent` converted to `amount` for fee values, business classification fields for categorization

### Component B: Daily active users  
- **Purpose**: Counts unique daily active users across multiple dimensional breakdowns
- **Logic**: Transaction sender addresses are counted daily from raw Osmosis blockchain data to identify unique active users. The data represents addresses that initiated at least one transaction per day, classified as 'Transaction sender' user type. Daily active user counts are averaged and then broken down into three dimensional views: project-level aggregation, chain-level aggregation (osmosis), and user type-level aggregation. These breakdowns are combined through a union operation.
- **Key fields**: `timestamp` for daily tracking, `value` converted to `user_dau` for user counts, dimensional classification fields (`dimensions`, `chain_id`, `user_type`)

### Final aggregation
- **Combining components**: The AFPU calculation divides total daily fees by daily active users using a specialized ratio calculation. Both components are matched by date to ensure proper temporal alignment.
- **Currency conversion**: Fees remain in their native format without additional currency conversion
- **Time aggregation**: Data is processed at daily boundaries with both fees and user counts aggregated to the same daily timestamp grain
- **Final calculation**: Average Fees Per User equals total daily fees divided by daily active users for each day. Missing days are filled with zero values to maintain time series continuity. Results are limited to data through June 20, 2024, and formatted with standardized schema including proper data type casting and business classification fields.

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

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Average fees per user (AFPU)

Average fees per user (AFPU)

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