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Raydium

# Raydium Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per unique active trader on the Raydium protocol. This metric divides total daily protocol revenue by the count of unique daily active users to assess revenue efficiency and user monetization. ARPU provides insights into how effectively Raydium converts trading activity into protocol revenue across its various product lines including AMM pools, concentrated liquidity, and LaunchLab.

## 2. Data sources

- **Solana DEX trades table**: Comprehensive trading data from Solana DEX aggregator covering all Raydium product variants including CPMM, CLMM, OpenBook, StableSwap, and LaunchLab
- **Raydium AMM configuration events**: Parsed Solana instruction events for `CreateAmmConfig` and `UpdateAmmConfig` from both CLMM and CPMM programs that define fee structures
- **Raydium pool creation events**: Parsed `CreatePool` and `Initialize` instruction events that create new trading pools
- **Raydium LaunchLab trade events**: Parsed `TradeEvent` instruction events containing fee breakdowns for LaunchLab trading activity
- **End-of-day token price feeds**: Daily price data for token-to-USD conversion
- **Token metadata**: Token decimals and contract information for amount normalization

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Count unique wallet addresses that executed trades on each day
- **Logic**: Extract the `signer` field from all Raydium trading transactions, representing the wallet address that initiated each trade. Aggregate unique signers per day using HyperLogLog algorithms to efficiently handle large-scale deduplication. Users are classified as "Trader" type and tracked across different product lines (Raydium CPMM, Raydium CLMM, Raydium OpenBook, Raydium Stable Swap, Raydium LaunchLab).
- **Key fields**: `signer` (wallet address), `block_timestamp` (for daily grouping), `product_id` (product line identification)

### Component B: Trading fee revenue calculation  
- **Purpose**: Calculate protocol revenue from trading fees across all AMM products
- **Logic**: For each trade, multiply trading volume by applicable fee rates. Fee rates vary by product: CPMM and CLMM pools use dynamic rates from AMM configuration events, OpenBook uses fixed 0.25% trade fee with 3% protocol share, StableSwap uses 0.02% trade fee with no protocol share, and LaunchLab fees are tracked separately. Protocol revenue is calculated as trading volume × trade fee rate × (protocol fee rate + fund fee rate). Fee rates are tracked over time using window functions to apply correct rates based on configuration changes.
- **Key fields**: `trading_volume_usd` (trade size), `trade_fee_rate`, `protocol_fee_rate`, `fund_fee_rate`

### Component C: Pool creation fee revenue
- **Purpose**: Track revenue from pool creation fees charged to liquidity providers
- **Logic**: Each CPMM pool creation requires a fixed 0.15 SOL fee. Extract pool creation events from `Initialize` instruction events and convert the fixed SOL fee amount to USD using end-of-day prices. Pool creation fees represent one-time revenue when new trading pairs are established.
- **Key fields**: `pool_address` (newly created pool), `fee_amount` (0.15 SOL), `token_address` (SOL mint address)

### Component D: LaunchLab protocol fees
- **Purpose**: Calculate protocol revenue from LaunchLab trading activity
- **Logic**: LaunchLab trades generate separate fee events containing `platform_fee`, `protocol_fee`, and `share_fee` amounts. Extract the `protocol_fee` component which represents Raydium's revenue share. Convert native token amounts to USD using end-of-day prices and token decimal information. LaunchLab fees are tracked separately from standard AMM trading fees.
- **Key fields**: `protocol_fee` (native token amount), `token_address` (fee token), `platform_fee`, `share_fee`

### Component E: Price conversion and aggregation
- **Purpose**: Convert all revenue sources to USD and aggregate by day
- **Logic**: Join all revenue sources with end-of-day token price feeds to convert native token amounts to USD values. Apply proper decimal normalization using token metadata. For trading volume calculations, prioritize stablecoin or SOL tokens when available, otherwise select the token with lower USD value to avoid double-counting. Aggregate all revenue sources by day to get total daily protocol revenue.
- **Key fields**: `price_usd` (end-of-day prices), `decimals` (token precision), `timestamp` (daily aggregation)

### Final aggregation
- **Combining components**: Sum trading fee revenue, pool creation fee revenue, and LaunchLab protocol fee revenue to get total daily protocol revenue. Simultaneously aggregate unique daily active users across all product lines using HyperLogLog merge functions.
- **Currency conversion**: All revenue components are converted to USD using end-of-day token prices with proper decimal handling for accurate monetary calculations
- **Time aggregation**: Data is aggregated using daily boundaries (timestamp truncated to day level) to align revenue and user counts to the same time periods
- **Final calculation**: ARPU is calculated as total daily revenue divided by unique daily active users. The division handles edge cases where DAU might be zero to prevent division errors. Results are standardized using the finalize metric framework and include dimensional breakdowns by product, chain, and user type.

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

RaydiumRAY

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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