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 revenue per user (ARPU) Methodology

## 1. Overview

ARPU (Average Revenue Per User) measures the average daily revenue generated per active user on Pika Protocol. This metric divides the protocol's daily revenue by the number of daily active users to understand revenue efficiency and user monetization. The calculation combines fee revenue from perpetual trading activities with user activity data from the same trading events, providing insight into how much revenue each active trader generates for the protocol on average.

## 2. Data sources

- **Perpetual trading events**: Parsed Optimism blockchain events from Pika Protocol smart contracts (versions v2, v3, and v4), specifically `NewPosition` and `ClosePosition` events that capture when users open or close perpetual trading positions
- **Liquidation events**: Parsed `PositionLiquidated` events from Pika Protocol v2 and v3 contracts on Optimism that capture forced position closures
- **Fee data**: USDC-denominated fee amounts embedded within the trading and liquidation events, stored with 8-decimal precision
- **Token metadata**: USDC token information including contract address (`0x7f5c764cbc14f9669b88837ca1490cca17c31607`) and symbol
- **End-of-day price feeds**: USDC to USD conversion rates for standardizing revenue calculations
- **Revenue configuration**: Protocol-specific revenue sharing parameters (50% revenue share since January 22, 2022)

## 3. Step-by-step calculation

### Component A: Daily active user identification
- **Purpose**: Identifies and counts unique users who actively trade on Pika Protocol each day
- **Logic**: Extracts user addresses from perpetual trading events across all contract versions. A user is considered active if they either open a new position (`NewPosition` event) or close an existing position (`ClosePosition` event) on a given day. The process unions events from v2, v3, and v4 contracts on Optimism, then truncates timestamps to day boundaries and counts distinct user addresses. HyperLogLog (HLL) aggregation is used for efficient distinct counting across large datasets.
- **Key fields**: `user` address from events, `block_timestamp` for daily aggregation, user classification as "Trader" type

### Component B: Trading fee revenue extraction
- **Purpose**: Calculates revenue from perpetual trading fees charged when users open or close positions
- **Logic**: Extracts the `fee` field from `NewPosition` and `ClosePosition` events across all contract versions. These fees are denominated in USDC with 8-decimal precision and are converted to standard decimal format by dividing by 10^8. Events are unioned across v2, v3, and v4 contracts on Optimism, with timestamps truncated to daily boundaries. A 50% revenue share is applied to convert total fees into protocol revenue.
- **Key fields**: `fee` amount in USDC, `block_timestamp` for daily aggregation, contract version and chain identification

### Component C: Liquidation fee revenue extraction
- **Purpose**: Calculates revenue from liquidation penalties when positions are forcibly closed
- **Logic**: Extracts liquidation fees from `PositionLiquidated` events in v2 and v3 contracts. The total liquidation fee combines `remainingReward` and `liquidatorReward` fields, both denominated in USDC with 8-decimal precision. These amounts are converted to standard decimal format and combined per liquidation event. Daily aggregation is applied with the same 50% revenue share as trading fees.
- **Key fields**: `remainingReward` and `liquidatorReward` amounts, `block_timestamp` for daily aggregation

### Component D: Revenue percentage application
- **Purpose**: Applies protocol-specific revenue sharing to convert total fees into protocol revenue
- **Logic**: Uses a hardcoded 50% revenue share that has been constant since January 22, 2022 (the first day Pika Protocol generated fees). This percentage is applied to both trading fees and liquidation fees using a fill-forward mechanism to handle any potential future changes in revenue sharing.
- **Key fields**: `revenue_percentage` (0.5), effective date timestamp for applying the correct rate

### Final aggregation
- **Combining components**: Daily trading fee revenue and liquidation fee revenue are combined by summing both components for each day after applying the revenue percentage
- **Currency conversion**: USDC-denominated revenue is converted to USD using end-of-day price feeds, maintaining precision for accurate financial reporting
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation, ensuring consistent time alignment between user counts and revenue
- **Final calculation**: ARPU equals daily total revenue (in USD) divided by daily unique active users, with missing days filled with zero values to maintain a complete time series

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

Pika ProtocolPIKA

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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