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 Active users (daily) Methodology

## 1. Overview

Daily Active Users (DAU) for Polynomial Protocol measures the number of unique user addresses that interact with the protocol's perpetual trading features within each calendar day. This metric captures both market order activity through Synthetix's perpetual contracts and limit order activity through Polynomial's native order management contracts. The calculation identifies users by tracking their trading transactions on Optimism, filtering specifically for activity attributed to Polynomial Protocol through a unique tracking code.

## 2. Data sources

The calculation relies on the following blockchain data sources:

- **Synthetix perpetual tracking events**: Parsed `PerpsTracking` events from three Synthetix v2 proxy contracts on Optimism (ProxyPerpsV2, ProxyPerpsV21, ProxyPerpsV22) that contain tracking codes identifying the originating protocol
- **Synthetix position modification events**: Parsed `PositionModified` events from the same three Synthetix perpetual proxy contracts on Optimism, capturing market order executions
- **Polynomial limit order events**: Parsed events from Polynomial's native limit order contracts on Optimism, including `ExecuteRequest` events from SynthetixLimitOrders contract and `ExecuteLimitOrder`/`ExecutePairOrder` events from AdvancedOrders contract
- **Optimism blockchain transaction data**: Transaction hashes and block timestamps for correlating events and establishing temporal boundaries

## 3. Step-by-step calculation

### Component A: Valid transaction identification
- **Purpose**: Identify transactions that contain Polynomial Protocol activity through tracking code verification
- **Logic**: Query `PerpsTracking` events from all three Synthetix perpetual proxy contracts on Optimism. Filter these events to include only those with the specific tracking code `0x706f6c796e6f6d69616c00000000000000000000000000000000000000000000` that identifies Polynomial Protocol as the originating source. Extract the transaction hashes from these filtered events to create a allowlist of valid Polynomial transactions.
- **Key fields**: `transaction_hash` for correlation, `trackingCode` for protocol identification

### Component B: Market order user extraction  
- **Purpose**: Capture user addresses from market order trading activity on Synthetix perpetual contracts
- **Logic**: Query `PositionModified` events from the same three Synthetix perpetual proxy contracts. Extract user addresses from the `account` field and associate them with transaction metadata including block timestamps, transaction hashes, and chain information. Filter this dataset to include only transactions that appear in the valid transaction allowlist from Component A, ensuring these represent Polynomial-originated market orders.
- **Key fields**: `account` as `user_address`, `block_timestamp`, `transaction_hash` for filtering, standardized metadata (`chain`, `market_sector_id`, `business_segment_id`, `user_type`)

### Component C: Limit order user extraction
- **Purpose**: Capture user addresses from limit order trading activity on Polynomial's native contracts  
- **Logic**: Query execution events from Polynomial's limit order contracts including `ExecuteRequest` events from the SynthetixLimitOrders contract and `ExecuteLimitOrder`/`ExecutePairOrder` events from the AdvancedOrders contract. Extract user addresses from the `user` field in these events and associate them with the same standardized metadata structure as market orders.
- **Key fields**: `user` as `user_address`, `block_timestamp`, `transaction_hash`, standardized metadata matching market order structure

### Component D: User activity consolidation
- **Purpose**: Combine market order and limit order user activities into a unified dataset
- **Logic**: Union the filtered market order user events from Component B with the limit order user events from Component C. Both datasets share the same schema with standardized fields including user addresses, timestamps, and categorical metadata. All users are classified with `user_type` as "Trader", `market_sector_id` as "derivatives", and `business_segment_id` as "perpetual".
- **Key fields**: Unified `user_address`, `block_timestamp`, `chain`, and categorical identifiers

### Final aggregation
- **Combining components**: The unified user activity dataset contains all trading interactions from both market and limit orders with consistent metadata structure
- **Time aggregation**: Block timestamps are truncated to daily boundaries using day-level granularity, creating discrete 24-hour periods for user counting
- **Daily user calculation**: Within each daily time boundary, count distinct user addresses to eliminate double-counting users who made multiple transactions on the same day
- **Final calculation**: The result is the count of unique user addresses that interacted with Polynomial Protocol's trading features for each calendar day, representing the daily active user count

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

Unique revenue-generating users over a fixed 24-hour window.

Polynomial Protocol

Active users (daily)

Active users (daily)

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