Liquidity providers deposit funds into Pharaoh and stake their LP tokens to receive PHAR tokens in proportion to their share of the votes (token incentives).

Pharaoh is a non-custodial exchange protocol built on Avalanche. Pharaoh was founded in 2023.

PHAR tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue).

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Pharaoh

# Pharaoh Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average amount of fees generated by an individual active user on Pharaoh within a 24-hour window. This metric is used to evaluate the unit economics of the protocol and the cost of the service for its participants. The calculation incorporates trading fees generated across Legacy Pair, Concentrated Liquidity Pool, and Concentrated Liquidity Pool V3 products, as well as voting incentives paid into the ecosystem.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric
- **Blockchain events**: `Swap` events from `LegacyPair`, `Pool`, and `RamsesV3Pool` contracts; `FeesCollected` events from `FeeCollector` contracts; `VotesIncentivized` events from `FeeDistributor` contracts; and configuration events including `feeChangeV1` from `PharaohCommandCenter` and `PairCreated`, `PoolCreated`, and `FeeAdjustment` from factory contracts on Avalanche
- **External data**: End-of-day price feeds for traded assets and specific market data for the PHAR asset

## 3. Step-by-step calculation

### Component A: Active users (daily) tracking

- **Purpose**: Identify the number of unique participants engaging with Pharaoh on a daily basis
- **Logic**: Transaction senders are extracted from `Swap` events across all Pharaoh versions. For each UTC day, the total count of unique addresses is calculated to determine the active users (daily). Only addresses initiating trades are classified as active users for this metric.
- **Key fields**: `user_address` (from transaction sender), `block_timestamp`

### Component B: Legacy Pair trading fees

- **Purpose**: Capture fees generated from V1 trading activity
- **Logic**: `Swap` events are parsed from `LegacyPair` contracts. Fee percentages for each pair are determined by monitoring `feeChangeV1` events from `PharaohCommandCenter` and `PairCreated` events from `Factory` contracts. The fee percentage is applied to the input token amounts of every swap to calculate the total fees generated per transaction.
- **Key fields**: `amount0In`, `amount1In`, `fee_percentage`

### Component C: Concentrated Liquidity Pool trading fees

- **Purpose**: Capture fees generated from V2 trading activity
- **Logic**: Fees for concentrated liquidity pools are extracted directly from `FeesCollected` events emitted by `FeeCollector` contracts. This includes both the portion distributed to participants and the portion allocated to the treasury.
- **Key fields**: `feeDistAmount0`, `feeDistAmount1`, `treasuryAmount0`, `treasuryAmount1`

### Component D: Concentrated Liquidity Pool V3 trading fees

- **Purpose**: Calculate fees generated from V3 trading activity based on volume and tiers
- **Logic**: `Swap` events from `RamsesV3Pool` contracts are used to calculate trading volume. The trading volume is multiplied by the specific fee tier assigned to the pool, which is identified through `PoolCreated` and `FeeAdjustment` events from `RamsesV3Factory` contracts. To ensure data integrity, trading volume is calculated using the lower USD value of the two swapped assets to mitigate the impact of price manipulation.
- **Key fields**: `amount0`, `amount1`, `fee_tier`

### Component E: Voting incentive collection

- **Purpose**: Include additional revenue-generating activities within the fee metric
- **Logic**: `VotesIncentivized` events are parsed from `FeeDistributor` contracts. These amounts represent incentives paid by participants to influence voting outcomes and are treated as part of the total fees generated by the project.
- **Key fields**: `reward_token`, `amount`

### Component F: Average fees per user calculation

- **Purpose**: Normalize total fees by the active user base to produce the final AFPU value
- **Logic**: All fee components (Legacy Pair, Concentrated Liquidity, V3, and voting incentives) are normalized by decimal precision and converted to USD using end-of-day price feeds. The total daily USD fee value is divided by the active users (daily) count. If no users are active on a given day, the metric is set to zero.
- **Key fields**: `fees` (USD), `user_dau` (count)

*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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