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Reserve

# Reserve Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the average fee revenue generated per daily active user in the Reserve protocol ecosystem. This metric provides insight into user monetization efficiency by dividing total daily fee revenue by the number of unique users who interacted with Reserve products. The calculation covers both Reserve's yield products (RTokens with staking) and index products (Reserve index tokens), capturing fees from TVL management, minting, yield distribution, and protocol revenue sharing.

## 2. Data sources

The AFPU calculation draws from multiple blockchain data sources across the Reserve protocol ecosystem:

- **Token transfer events**: Parsed `Transfer` events from Ethereum, Base, and Arbitrum for Reserve protocol tokens, including RTokens, Reserve index tokens, and RSR tokens
- **Reserve protocol events**: Configuration events from multiple Reserve protocol versions (v1, v2, v3) including `RTokenCreated`, `BackingManagerSet`, `FurnaceSet`, `RSRTraderSet` events that define protocol component relationships
- **Reserve index events**: Fee configuration events from Reserve index protocols on Ethereum and Base, including `MintFeeSet`, `TVLFeeSet`, `FeeRecipientsSet` events
- **RSR buyback events**: `TradeSettled` events from RSR trader contracts capturing protocol revenue through RSR token purchases  
- **Token burn events**: Transfer events from furnace contracts to null/dead addresses representing yield fee distribution
- **External price data**: End-of-day token price feeds for USD conversion of fee amounts
- **Token metadata**: Token decimal information for proper unit conversion

## 3. Step-by-step calculation

### Component A: Daily active users identification

- **Purpose**: Identify and count unique users who interact with Reserve protocol products daily
- **Logic**: Extract user addresses from token transfer events across four interaction types: deposits and withdrawals to RToken backing managers (users moving collateral in/out of yield-generating positions), transfers of Reserve index tokens (users trading or managing index positions), and RSR token flows to/from staked RSR contracts (users staking or unstaking RSR). Users are classified as either 'Depositor' or 'Withdrawer' based on transfer direction. Daily aggregation groups all interactions by truncated day timestamps.
- **Key fields**: User addresses extracted from `from_address` and `to_address` fields based on transfer direction, with `user_type` classification and `product_id` categorization (Reserve Yield, Reserve Rights, Reserve Index)

### Component B: Reserve index fee calculation

- **Purpose**: Calculate fees generated from Reserve index products through TVL fees and mint fees
- **Logic**: Join Reserve index token transfers with configured fee rates to calculate two fee types. TVL fees are calculated by multiplying daily token balances by the per-second TVL fee rate and seconds per day. Mint fees are calculated by multiplying deposit amounts by the configured mint fee percentage. Fee rates are determined from protocol configuration events that set `tvl_fee_per_second`, `tvl_fee_per_year`, and `mint_fee` values. Platform fee splits are applied using recipient portion configurations to separate supply-side fees from protocol revenue.
- **Key fields**: `amount` for token balances and transfers, `tvl_fee_per_second` and `mint_fee` for rate calculations, `platform_fee_rate` for revenue splitting

### Component C: Reserve yield fee calculation  

- **Purpose**: Calculate fees from Reserve yield products through RToken burns and RSR buybacks
- **Logic**: Capture two revenue streams from yield products. Supply-side fees come from RToken burn events where furnace contracts transfer tokens to null or dead addresses, representing yield distributed to users. Protocol revenue comes from RSR buyback events where RSR trader contracts purchase RSR tokens using protocol earnings. Burns are identified by transfers from furnace contract addresses to `0x0000000000000000000000000000000000000000` or `0x000000000000000000000000000000000000dead` addresses. Buybacks are identified from `TradeSettled` events on RSR trader contracts.
- **Key fields**: `amount` from burn and buyback events, `token_address` for identifying which tokens are involved, contract addresses linking to furnace and RSR trader configurations

### Final aggregation

- **Combining components**: Index fees, yield supply-side fees, and yield revenue are summed together to create total daily fees. Each fee stream is calculated separately then unioned in the final aggregation step. User counts from all interaction types are combined using HyperLogLog sketches to accurately deduplicate users who may have multiple interactions per day.
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds matched by `token_address` and date. Token decimal corrections are applied using metadata to ensure proper unit conversion before price multiplication.
- **Time aggregation**: Events are grouped by day using timestamp truncation to `day` granularity. Both fees and user counts are aggregated to daily totals with consistent timezone handling.
- **Final calculation**: AFPU equals the sum of all daily fees in USD divided by the count of distinct daily users. The division uses the `calculate_arpu` macro which handles zero user days by returning null values rather than division errors. Missing days are filled with zeros using the configured fill strategy.

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

ReserveRSR

Average fees per user (AFPU)

Average fees per user (AFPU)

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