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# Prime Numbers Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the daily average fee revenue generated per active user on the PrimeFi Lending lending protocol. This metric divides total daily protocol fees by the number of daily active users, providing insight into revenue efficiency and user monetization. The calculation combines interest fees from lending/borrowing activities and flash loan premiums, then divides by the distinct count of users who interacted with the protocol on each day.

## 2. Data sources

The calculation relies on several key data sources:
- **XDC blockchain event logs**: Parsed events from PrimeFi Lending's LendingPool contract including `Borrow`, `Repay`, `Deposit`, `Withdraw`, and `FlashLoan` events that capture all user interactions
- **XDC blockchain event logs**: Events from LendingPoolConfigurator contract including `ReserveFactorChanged` and `ReserveInitialized` events for market configuration
- **XDC token transfer events**: Filtered transfers of aTokens to treasury addresses that represent protocol fee collection
- **End-of-day token price feeds**: Daily closing prices for USD conversion of fee amounts
- **Token metadata**: Information about token decimals and address mappings for accurate price lookups

## 3. Step-by-step calculation

### Component A: Daily active user identification
- **Purpose**: Count distinct users who interacted with the PrimeFi Lending protocol each day
- **Logic**: Extract user addresses from lending pool events across five interaction types: borrowers from `Borrow` events using `user` field, flash loan initiators from `FlashLoan` events using `initiator` field, repayers from `Repay` events using `user` field, depositors from `Deposit` events using `user` field, and withdrawers from `Withdraw` events using `user` field. Aggregate all interactions by day and count distinct user addresses using HyperLogLog for efficient computation
- **Key fields**: `user_address` from various event types, `block_timestamp` for daily aggregation, `user_type` for classification

### Component B: Interest fee calculation
- **Purpose**: Calculate protocol fees earned from lending interest using the AAVE v2 fee collection pattern
- **Logic**: Identify fee collection events by finding aToken transfers from the null address to the treasury address, which represent protocol fee mints. Join these transfers with reserve factor data to calculate total interest generated. Apply the formula: total_interest = fee_amount / reserve_factor, where the fee represents the protocol's portion and the remaining goes to suppliers. Extract reserve factors from `ReserveFactorChanged` events and fill forward daily values with a default of 10%
- **Key fields**: `amount` from aToken transfers, `reserve_factor` from configuration events, `token_address` for market identification

### Component C: Flash loan fee collection  
- **Purpose**: Capture direct fees from flash loan usage
- **Logic**: Extract premium amounts directly from `FlashLoan` events, which represent fees paid by users for temporary liquidity access. These fees are collected immediately and represent pure protocol revenue
- **Key fields**: `premium_amount` from flash loan events, `token_address` for fee denomination

### Component D: Fee aggregation and USD conversion
- **Purpose**: Combine all fee types and standardize to USD values
- **Logic**: Sum interest fees and flash loan fees by day, token, and market. Apply decimal correction using token metadata to ensure proper scaling. Handle special price mapping where psXDC token addresses are mapped to WXDC addresses for price lookup. Convert all fee amounts to USD using end-of-day price feeds
- **Key fields**: `fees` (combined amounts), `token_address` for price lookup, `timestamp` for daily boundaries

### Final aggregation
- **Combining components**: Sum total daily fees across all tokens and markets, then divide by the daily active user count for the same day
- **Currency conversion**: All fees are converted to USD using end-of-day token prices, with special handling for psXDC to WXDC price mapping
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with missing days filled with zeros
- **Final calculation**: AFPU = Total Daily Fees (USD) / Daily Active Users, where both numerator and denominator are calculated for the same day using consistent timestamp boundaries

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

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Average fees per user (AFPU)

Average fees per user (AFPU)

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