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

Pika Protocol is a non-custodial exchange for perpetual contracts built on Optimism. Pika Protocol was founded by an anonymous team and was launched in 2021.

PIKA tokenholders own and govern the protocol. Pika Protocol has no private investors.

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Pika Protocol

# Pika Protocol 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 Pika Protocol. This metric answers the business question of how much fee revenue each user generates on average per day. The calculation divides total daily fees by the number of unique daily active users, providing insight into user monetization and fee efficiency across Pika Protocol's perpetual trading platform.

## 2. Data sources

- **Blockchain events**: Parsed Optimism `PikaPerp_NewPosition_event`, `PikaPerp_ClosePosition_event`, and `PikaPerp_PositionLiquidated_event` from Pika Protocol v2, v3, and v4 contracts
- **Transaction data**: Optimism transaction logs containing perpetual trading activity and liquidation events
- **External data**: End-of-day USDC price feeds for USD conversion and token metadata for USDC contract identification
- **Revenue configuration**: Protocol-defined revenue split percentages determining the allocation between protocol revenue and liquidity provider fees

## 3. Step-by-step calculation

### Component A: Perpetual trading fees
- **Purpose**: Captures fees generated from opening and closing perpetual positions
- **Logic**: Extracts fee amounts from `PikaPerp_NewPosition_event` and `PikaPerp_ClosePosition_event` across Pika Protocol versions 2, 3, and 4 on Optimism. Each event contains a `fee` field representing the trading fee in USDC with 8 decimal places. Events are filtered by contract address to ensure only Pika Protocol transactions are included. The data is deduplicated using transaction hash and log index to prevent double-counting.
- **Key fields**: `fee` amount in 8-decimal USDC, trader address from `user` field, contract version, and block timestamp

### Component B: Liquidation fees
- **Purpose**: Captures fees generated from position liquidations
- **Logic**: Extracts fees from `PikaPerp_PositionLiquidated_event` from Pika Protocol v2 and v3 contracts on Optimism. Liquidation fees consist of two components: `remainingReward` (leftover collateral) and `liquidatorReward` (compensation to liquidator). These amounts are summed together and represent the total liquidation fee in USDC with 8 decimal places.
- **Key fields**: `remainingReward` and `liquidatorReward` amounts in 8-decimal USDC, liquidated position address, and block timestamp

### Component C: Fee splitting and aggregation
- **Purpose**: Applies revenue split and aggregates total fees
- **Logic**: Both trading and liquidation fees are split according to the configured revenue percentage (50% since January 22, 2022). Protocol revenue receives 50% of each fee while liquidity providers receive the remaining 50% as supply-side fees. Daily timestamps are created by truncating block timestamps to day boundaries. All USDC amounts are converted from 8-decimal format to standard decimal representation and then converted to USD using end-of-day price feeds. Revenue and supply-side portions are summed together to calculate total daily fees.
- **Key fields**: `revenue` (protocol portion), `fees_supply_side` (liquidity provider portion), daily `timestamp`, and USD-converted `fees` amount

### Component D: Daily active users
- **Purpose**: Counts unique users trading on each day
- **Logic**: Extracts trader addresses from the same perpetual trading events (`PikaPerp_NewPosition_event` and `PikaPerp_ClosePosition_event`) across all Pika Protocol versions. User addresses are identified from the `user` parameter in each event. Daily active users are calculated by truncating block timestamps to day boundaries and applying HyperLogLog aggregation to count distinct user addresses per day. This approach handles large datasets efficiently while maintaining accuracy in unique user counts.
- **Key fields**: `user_address` from trading events, daily `timestamp`, and aggregated `user_dau` count

### Final aggregation
- **Combining components**: Total daily fees and daily active user counts are joined on the daily timestamp. Days without trading activity are filled with zero values for both metrics to maintain complete time series data.
- **Currency conversion**: All fee amounts are converted from USDC to USD using end-of-day price feeds, ensuring consistent currency denomination across the calculation
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with all activities within a 24-hour period contributing to that day's metrics
- **Final calculation**: AFPU is calculated by dividing total daily fees (in USD) by the daily active user count. If there are no active users on a given day, the AFPU value is set to zero. The formula is: AFPU = Total Daily Fees (USD) ÷ Daily Active Users, where both components represent the same time period and trading activity.

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

Pika ProtocolPIKA

Average fees per user (AFPU)

Average fees per user (AFPU)

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