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.

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# Premia Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Premia options trading protocol. This metric is calculated by dividing total daily revenue by the number of daily active users (DAU), providing insight into user monetization efficiency across Premia's multi-chain derivatives platform.

## 2. Data sources

- **Parsed Premia v1 Pool events**: `Deposit`, `Withdrawal`, `Purchase`, `Sell`, `Exercise`, and `APYFeePaid` events from Arbitrum, Ethereum, Fantom, and Optimism chains
- **ProxyManager deployment events**: `DeployPool` events containing market metadata and pool configurations
- **Token metadata**: Cross-chain token registry containing token symbols, addresses, and decimal configurations
- **End-of-day price feeds**: Daily closing prices for token-to-USD conversion across all supported chains

## 3. Step-by-step calculation

### Component A: Daily active users calculation

- **Purpose**: Identifies and counts unique users interacting with Premia pools daily across all chains
- **Logic**: Extracts user addresses from four types of Pool events: `Deposit` and `Withdrawal` events identify users as "Depositors", while `Purchase` and `Sell` events identify users as "Traders". Each event contains a `user` parameter with the wallet address. Users are deduplicated using HyperLogLog with 15-bit precision to handle the same user performing multiple activities. The calculation processes events from all four supported chains (Arbitrum, Ethereum, Fantom, Optimism) and aggregates users by day
- **Key fields**: `block_timestamp` for daily aggregation, `user` field from events, `chain` identifier, and `user_type` classification (Depositor or Trader)

### Component B: Revenue calculation from trading fees

- **Purpose**: Calculates revenue from options trading activities (purchases and sales)
- **Logic**: Extracts fee data from `Purchase` and `Sell` events across all chains. The `longTokenId` parameter is decoded using division by 2^248 to determine the fee token: value 4.0 indicates underlying token fees, value 6.0 indicates base token fees. Events are joined with `DeployPool` events to get market metadata and with the token registry to get token symbols and decimals. The `feeCost` amount represents the trading fee collected
- **Key fields**: `feeCost` for fee amount, `longTokenId` for token identification, `underlying` and `base` token addresses from market data

### Component C: Revenue calculation from exercise fees

- **Purpose**: Captures additional revenue from option exercise activities and APY fees
- **Logic**: Combines two fee sources: `Exercise` events containing exercise fees in the `fee` field, and `APYFeePaid` events containing APY-related fees in the `amount` field. Similar to trading fees, token addresses are decoded from `longTokenId` (for Exercise) and `shortTokenId` (for APYFeePaid) parameters using bit manipulation. Values 4.0/5.0 indicate underlying token, while 6.0/7.0 indicate base token
- **Key fields**: `fee` from Exercise events, `amount` from APYFeePaid events, token ID parameters for address resolution

### Component D: USD conversion and aggregation

- **Purpose**: Converts all fee amounts to USD and aggregates by day
- **Logic**: All revenue amounts are converted to USD using end-of-day token prices matched by chain and token address. Token decimals are corrected during conversion to ensure proper scaling. Revenue from both trading and exercise sources are combined and summed by day, chain, and other dimensions
- **Key fields**: `token_address` for price matching, `revenue` amounts in native tokens, converted `revenue_usd` values

### Final aggregation

- **Combining components**: Daily revenue totals are divided by daily active user counts using the ARPU calculation macro. Both metrics are aggregated to the same daily grain and matched by timestamp
- **Currency conversion**: All revenue is converted to USD using end-of-day prices before the division
- **Time aggregation**: Both user counts and revenue use daily boundaries based on `block_timestamp` truncated to day level
- **Final calculation**: ARPU equals total daily revenue in USD divided by the count of unique daily active users, with missing days filled with zero values to maintain continuity

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

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