Users deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

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

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Pendle

# Pendle Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the fees paid per active user over a fixed 24-hour window. It is calculated as total daily fees divided by active users (daily), reflecting how much an individual user pays for the project’s service on a daily basis. Insight into user monetization efficiency across Pendle's decentralized finance products, including Pendle AMM, Pendle Limit Order, Pendle Yield Tokenization, and Boros, is provided by 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: Pendle AMM and Pendle Limit Order fee collection

- **Purpose**: Capture fees generated from trading activities on Pendle AMM and Pendle Limit Order
- **Logic**: Fee amounts are extracted from `Swap` events emitted by `MarketV2`, `MarketV3`, `MarketV4`, `MarketV5`, `MarketV6`, and `MarketV7` contracts for Pendle AMM, and `OrderFilledV2` events emitted by `LimitRouter` contracts for Pendle Limit Order. For specific assets (such as BTC-based assets on Berachain and Base, or assets on Monad), fee and volume amounts are scaled to normalize decimal precision. Fee amounts are multiplied by the corresponding SY asset exchange rate to convert them to underlying asset quantities.
- **Key fields**: `fee_amount`, `volume_amount`, `sy_address`, `block_timestamp`

### Component B: Pendle Yield Tokenization fee collection

- **Purpose**: Capture interest and reward fees collected from yield-bearing assets
- **Logic**: Interest fees are extracted from `CollectInterestFee` events emitted by `YTv5`, `YTv6`, and `YTv7` contracts. Reward fees are extracted from `CollectRewardFee` events emitted by `YTv5`, `YTv6`, and `YTv7` contracts. Collected interest fees are multiplied by the corresponding SY asset exchange rate to normalize them to underlying asset quantities, while reward fees are normalized using asset decimal precision.
- **Key fields**: `amountInterestFee`, `amountRewardFee`, `rewardToken`, `block_timestamp`

### Component C: Boros fee collection

- **Purpose**: Capture fees generated from Boros perpetual interest rate markets
- **Logic**: Fee amounts are extracted from `MarketOrdersFilled`, `OtcSwap`, `Liquidate`, and `PaymentFromSettlement` events emitted by `BorosMarket` contracts, as well as `SwapWithAmm` and `SingleOrderExecuted` events emitted by `BorosRouter` contracts. Absolute values of fee amounts are normalized to 18-decimal precision. For packed trade size values in events like `Liquidate`, `MarketOrdersFilled`, and `OtcSwap`, a JavaScript user-defined function is applied to extract the upper 128 bits representing the trade size.
- **Key fields**: `fees`, `otcFee`, `liqFee`, `totalFees`, `takerOtcFee`, `block_timestamp`

### Component D: vePendle revenue tracking

- **Purpose**: Capture protocol revenues distributed to vePendle holders
- **Logic**: Asset transfers to the Pendle treasury and distributor contracts are tracked using ERC-20 transfer events. Transfers of USDT are excluded to prevent double-counting of primary fees. Transfer values are multiplied by the corresponding SY asset exchange rate to normalize them to underlying asset quantities.
- **Key fields**: `value`, `token_address`, `to_address`, `block_timestamp`

### Component E: SY asset price and exchange rate calculation

- **Purpose**: Calculate conversion rates and exchange rates for SY assets to enable accurate valuation
- **Logic**: For conversion rates, `Deposit` events from `SYv2`, `SYv3`, `SYv4`, `SYv5`, `SYv6`, and `SYv7` contracts are analyzed to establish the ratio between deposited underlying assets and received SY assets. Daily ratios are aggregated, and missing days are forward-filled. Denylisted assets with 1:1 deposit-to-SY ratios are excluded to prevent pricing distortions. For exchange rates, daily state reads of SY exchange rates are normalized by decimal precision and carried forward to ensure continuous daily coverage, with any assets that have never had a valid state read being dropped.
- **Key fields**: `amountDeposited`, `amountSyOut`, `sy_exchange_rate`, `timestamp`

### Component F: User identification

- **Purpose**: Identify active users (daily) participating in Pendle protocol activities
- **Logic**: User addresses are extracted from the transaction sender field (`from_address`) associated with `Swap` events on Pendle AMM contracts, which represent the primary user interaction. Active users (daily) are aggregated by day, chain, and product.
- **Key fields**: `from_address`, `block_timestamp`

### Component G: USD conversion and final aggregation

- **Purpose**: Normalize all collected fees to USD and calculate the average fees per user
- **Logic**: Underlying asset addresses are mapped using token mapping tables. Normalized fee amounts are multiplied by end-of-day asset prices to determine USD values. Total daily fees (including Pendle AMM, Pendle Limit Order, Pendle Yield Tokenization, Boros, and vePendle revenues) are summed. Active users (daily) are aggregated across products. Finally, average fees per user (AFPU) is calculated by dividing total daily fees by active users (daily), with division-by-zero scenarios handled safely.
- **Key fields**: `fees`, `user_dau`, `afpu`

*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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