Paragon earns a deployer share of trading fees on the perpetual markets it has deployed under Hyperliquid's HIP-3 framework. Markets execute on Hyperliquid's HyperCore L1 order book; it does not operate its own matching engine. The default HIP-3 fee split allocates 50% of each user-paid fee to Hyperliquid and 50% to the deployer; deployerFeeScale is 1.0, so the standard split applies.

Paragon offers USDC-settled perpetual contracts on crypto index and basket products (BTC dominance, TOTAL2, OTHERS) and AVGO. All 4 markets are deployed under the HIP-3 `para` namespace and execute on Hyperliquid's HyperCore order book.

Paragon is a HIP-3 (builder-deployed perpetuals) deployer on Hyperliquid, deployed by wallet 0x8888888c43cbb7e1c4132542e46831bffd866ed3. Paragon is operated as a private company; no token has been issued.

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Paragon

# Paragon Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is used to measure the average daily transaction fees paid by individual traders on Paragon products, such as `para:TOTAL2` and `para:OTHERS`. It is calculated as total daily fees divided by active users (daily), and is used to provide a metric for the average cost of service per participant. This value is utilized to evaluate the unit economics and user-level monetization of the platform across Paragon-deployed markets on HyperCore.

## 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: Paragon Perps fee extraction

- **Purpose**: Capture the total value of user-paid trading fees
- **Logic**: Perpetual trading data is parsed from `node_fills` events on HyperCore contracts. TradeXYZ-specific markets are identified using the `para:` namespace prefix. User-paid fees are extracted from the `fee` field, which represents the actual amount paid by the trader. Since all fees are settled in USDC, values are treated as USD-denominated and amounts are normalized by decimal precision.
- **Key fields**: `fee` (fee amount), `fee_token` (asset identification), `coin` (market identification)

### Component B: Active user identification

- **Purpose**: Identify the daily count of unique participants
- **Logic**: Unique active users are identified by extracting distinct `account_address` values from trade events. Both maker and taker participants are included in the daily count to ensure the full scope of platform activity is captured.
- **Key fields**: `account_address` (user identification), `block_timestamp` (timing)

### Component C: Average fees per user calculation

- **Purpose**: Calculate the final daily average per participant
- **Logic**: Total daily fees are divided by the count of unique active users (daily). The resulting value is used to represent the average fee contribution per user over a 24-hour window. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `fees` (numerator), `user_dau` (denominator)

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

Paragon

Average fees per user (AFPU)

Average fees per user (AFPU)

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