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

PancakeSwap is a non-custodial exchange protocol built on Binance Smart Chain and other blockchains (originally a fork of Uniswap). PancakeSwap was founded by an anonymous team and launched in 2020.

CAKE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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PancakeSwap

# PancakeSwap Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) measures the daily revenue generated per active user on PancakeSwap. The metric is calculated as total daily revenue divided by active users (daily) (daily), reflecting the daily monetization efficiency of individual users. Both PancakeSwap V2 and PancakeSwap V3 are covered by this metric.

## 2. Data sources

- **Revenue**: Derived from the Revenue metric, covering Arbitrum, Base, BNB Chain, Ethereum, and 2 other chains
- **Active users (daily)**: Derived from the Active users (daily) metric, covering Arbitrum, Base, BNB Chain, Ethereum, and 2 other chains

## 3. Step-by-step calculation

### Component A: Swap and flash loan user activity extraction

- **Purpose**: To identify all users who interact with PancakeSwap protocols on a daily basis.
- **Logic**: User addresses are extracted from both trading and flash loan activities. For trades, data are collected from V2 `Swap` events from `Pair` contracts and V3 `Swap` events from `Pool` contracts. For flash loans, data are collected from V3 `Flash` events from `Pool` contracts. Each event is joined with its corresponding transaction record to identify the actual user address from the transaction `from_address` field rather than contract addresses. Interactions with denylisted trading pairs that have limited price feed support due to low liquidity are filtered out.
- **Key fields**: `user_address`, `block_timestamp`, `chain`

### Component B: Daily active user calculation

- **Purpose**: To count distinct active users (daily) across all PancakeSwap activities.
- **Logic**: Users from trading and flash loan activities are combined, and distinct users are counted per day. Users are grouped by day, chain, and user type. A union of distinct users from both activity types is used to avoid double-counting users who perform multiple types of activities.
- **Key fields**: `user_dau`, `timestamp`, `chain`

### Component C: Trading volume calculation

- **Purpose**: To calculate USD-denominated trading volume for revenue calculation.
- **Logic**: Asset amounts are extracted from swap events, where V2 events provide `amount0In`, `amount0Out`, `amount1In`, and `amount1Out` fields, and V3 events provide direct `amount0` and `amount1` values. Net asset changes are calculated for each trade. These are joined with trading pair metadata to get asset decimal places, and amounts are normalized by decimal precision. Both asset amounts are converted to USD using end-of-day price feeds, and the lesser of the two USD values is selected to prevent price manipulation through inflated asset prices. Daily volumes are aggregated per trading pair.
- **Key fields**: `token0_amount`, `token1_amount`, `trading_volume`

### Component D: Revenue calculation

- **Purpose**: To calculate daily protocol revenue from trading fees.
- **Logic**: Different methodologies are applied for V2 and V3 protocols. For V2 trades, revenue is calculated as 0.08% of trading volume since V2 events do not contain direct protocol fee data. For V3 trades, protocol fees are extracted directly from `protocolFeesToken0` and `protocolFeesToken1` fields in swap events, normalized by decimal precision, and converted to USD using end-of-day price feeds. Both asset fee amounts are summed to obtain total trade revenue. Daily revenue is aggregated across all trading pairs and chains.
- **Key fields**: `revenue`, `version`

### Component E: Average revenue per user calculation

- **Purpose**: To calculate the average revenue generated per active user (daily).
- **Logic**: Daily revenue totals are divided by the active users (daily) (daily) count. Revenue totals are summed across all trading pairs, chains, and protocol versions. User counts are deduplicated across all activities to prevent double-counting. All revenue amounts are converted to USD using end-of-day price feeds, with asset amounts normalized by decimal precision. Both metrics are grouped within 24-hour UTC day boundaries.
- **Key fields**: `arpu`, `revenue`, `user_dau`

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

PancakeSwapCAKE

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape