Options buyers pay premium (supply-side fees) to liquidity providers who collaterize these option positions and cover possible profits.

Premia is an options trading protocol built on Ethereum & adjacent blockchains. Premia was founded by Anon Powered team and launched in 2021.

PREMIA tokenholders own and govern the protocol. They take a protocol fee (revenue) from options trading.

github

twitter

discord

etherscan

website

Derivative exchanges

Premia

# Premia Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average daily fee revenue generated per daily active user on the Premia options protocol. This metric answers the business question: "How much fee revenue does each active user generate on average per day?" The calculation divides total daily fees (including trading fees, premiums, and exercise fees) by the number of daily active users across all supported chains and user types.

## 2. Data sources

- **Premia v1 contract events**: Parsed event logs from Premia Pool contracts on Arbitrum, Ethereum, Fantom, and Optimism including `Pool_Purchase_event`, `Pool_Sell_event`, `Pool_Deposit_event`, `Pool_Withdrawal_event`, `Pool_Exercise_event`, and `Pool_APYFeePaid_event`
- **Market deployment events**: Premia `ProxyManager_DeployPool_event` logs containing market metadata and token pair information
- **Token metadata**: Reference data containing token symbols, decimal places, and contract addresses for all supported chains
- **End-of-day price feeds**: Daily token price data for USD conversion across all tokens used in Premia markets
- **Blockchain transaction data**: Transaction hashes, block timestamps, and log indices for event ordering and deduplication

## 3. Step-by-step calculation

### Component A: Fee collection and aggregation
- **Purpose**: Calculate total daily fees from all Premia protocol activities
- **Logic**: Collect fees from two main sources. First, trading fees from options purchase and sell events, combining both the `baseCost` premium amount and `feeCost` trading fee. Second, exercise-related fees from `Pool_Exercise_event` (using `fee` field) and `Pool_APYFeePaid_event` (using `amount` field). For each event, decode the `longTokenId` or `shortTokenId` using bit manipulation (dividing by 2^248) to determine the option type and corresponding fee token address. Values of 4.0 and 5.0 indicate underlying token usage, while 6.0 and 7.0 indicate base token usage. Join with market deployment events to retrieve token pair metadata and construct option descriptions like "CALL: ETH-USDC" or "PUT: ETH-USDC"
- **Key fields**: `feeCost` and `baseCost` from trading events, `fee` from exercise events, `amount` from APY fee events, `longTokenId` and `shortTokenId` for token identification, `underlying` and `base` token addresses from market metadata

### Component B: Daily active user calculation
- **Purpose**: Count distinct users interacting with Premia protocol daily
- **Logic**: Identify unique user addresses from four event types across all supported chains. Deposit and withdrawal events classify users as "Depositor" type, while purchase and sell events classify users as "Trader" type. Extract the `user` field from deposit/withdrawal events and `user` field from purchase/sell events. Aggregate to daily granularity and use HyperLogLog sketches to count distinct users across multiple dimensions including project-level (all chains combined), chain-level, user-type level (Depositor vs Trader), and product-level breakdowns. This ensures accurate distinct counting even when users perform multiple actions per day or across multiple chains
- **Key fields**: `user` addresses from all event types, `block_timestamp` for daily aggregation, event type for user classification, chain identifier for multi-chain aggregation

### Component C: USD conversion and standardization
- **Purpose**: Convert all fee amounts to USD for consistent reporting
- **Logic**: Join fee data with end-of-day price feeds using token address and transaction date. Apply decimal correction based on each token's decimal places to convert raw blockchain amounts to human-readable values. Multiply by USD price to get USD-denominated fee amounts. Handle multiple fee tokens within the same day by summing USD values after conversion
- **Key fields**: `token_address` for price lookup, `block_timestamp` for price date matching, token `decimals` for amount normalization, daily `price_usd` for conversion

### Final aggregation
- **Combining components**: Join daily fee totals with daily active user counts by date, chain, and other relevant dimensions. Both datasets are aggregated to daily granularity before joining
- **Currency conversion**: All fees are converted to USD using end-of-day price feeds with proper decimal adjustment applied before aggregation
- **Time aggregation**: Data is aggregated to daily boundaries using `timestamp_trunc` function on block timestamps, ensuring consistent daily reporting across all chains and time zones
- **Final calculation**: Divide total daily fees in USD by total daily active users using the ARPU calculation macro. Handle days with zero users by implementing a fill-zeros strategy that assigns zero AFPU rather than null values. The result represents the average fee revenue generated per active user per day across the entire Premia protocol ecosystem

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

PremiaPREMIA

Archived

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape