Polynomial Protocol builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Polynomial trade futures against the liquidity provided by liquidity providers on Synthetix, with liquidity providers receiving trading fees (supply-side fees).

Polynomial Protocol is a non-custodial exchange for perpetual contracts built on Optimism. Polynomial Protocol was founded by Gautham Santhosh, Salman Naseer Ahmed, & Mubaris NK, and their flagship product Polynomial Trade was launched in 2023.

The Polynomial team own and govern the protocol. Polynomial’s investors include Archetype, Genblock Capital, Caballeros Capital, etc.

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Polynomial Protocol

# Polynomial Protocol Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on Polynomial Protocol, a derivatives trading platform on Optimism. This metric is calculated by dividing total daily revenue by the number of daily active users, providing insight into revenue efficiency and user value. The calculation combines revenue from advanced order fees and Synthetix kickbacks, divided by users identified through perpetual trading activity.

## 2. Data sources

- **Synthetix perpetual trading events**: Parsed `PositionModified` events from Synthetix ProxyPerpsV2 contracts on Optimism, filtered by Polynomial's tracking code
- **Advanced order execution events**: Parsed `ExecuteRequest`, `ExecuteLimitOrder`, and `ExecutePairOrder` events from Polynomial's limit order contracts
- **Token transfer events**: Optimism `Transfer` events for SNX tokens representing kickback payments from Synthetix to Polynomial
- **End-of-day price feeds**: Token price data for USD conversion of revenue amounts
- **Token metadata**: Decimal precision data for proper token amount normalization

## 3. Step-by-step calculation

### Component A: Revenue from advanced orders
- **Purpose**: Calculate revenue from limit order and advanced order execution fees
- **Logic**: Extract fee amounts from advanced order execution events including `ExecuteRequest`, `ExecuteLimitOrder`, and `ExecutePairOrder` events. These events contain a `totalFee` field representing fees collected in sUSD tokens. Revenue is aggregated daily by summing all fee amounts from these order types.
- **Key fields**: `totalFee` amounts in sUSD, `block_timestamp` for daily aggregation, contract addresses for event source identification

### Component B: Revenue from Synthetix kickbacks
- **Purpose**: Calculate revenue from SNX token kickbacks received from Synthetix through SIP-2002
- **Logic**: Track SNX token transfers from Synthetix's kickback sender address (`0x73f671f272f35572d948e377a09b9be61c8e4ee2`) to Polynomial's kickback receiver address (`0x7cb6bf3e7395965b2162a7c2e6876720c20012d6`). These transfers represent revenue sharing from Synthetix protocol activity. Revenue is aggregated daily by summing transfer amounts.
- **Key fields**: `value` amounts in SNX tokens, specific `from_address` and `to_address` for kickback identification, SNX token address for filtering

### Component C: Daily active user identification
- **Purpose**: Count unique users engaging in perpetual trading activities
- **Logic**: Identify users through two event types: market orders via `PositionModified` events filtered by Polynomial's tracking code (`0x706f6c796e6f6d69616c00000000000000000000000000000000000000000000`), and limit orders via advanced order execution events. Extract user addresses from `account` fields in market order events and `user` fields in limit order events. Users are deduplicated using HyperLogLog functions with 15-bit precision to handle large user sets efficiently.
- **Key fields**: `account` and `user` addresses for user identification, `trackingCode` for filtering market orders, `block_timestamp` for daily boundaries

### Final aggregation
- **Combining components**: Total daily revenue combines advanced order fees and SNX kickbacks, both converted to USD using end-of-day price feeds and adjusted for token decimals
- **Currency conversion**: All revenue amounts are converted to USD using end-of-day token prices, with sUSD amounts treated as 1:1 with USD and SNX amounts converted using SNX/USD rates
- **Time aggregation**: Both revenue and user data are aggregated to daily boundaries using `timestamp_trunc` to day level, ensuring consistent time alignment
- **Final calculation**: ARPU is calculated by dividing total daily revenue (in USD) by the count of daily active users for each day, with missing days filled with zero values to maintain complete time series data

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

Polynomial Protocol

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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