Liquidity providers deposit funds into Ribbon Protocol and receive option premiums from traders & withdrawal fees from other liquidity providers (supply-side fees).

Ribbon Finance is a non-custodial asset management protocol built on Ethereum. Ribbon Finance was founded by Julian Koh & Ken Chan and launched in 2021.

RBN tokenholders own and govern the protocol. They currently take a cut of the total premiums and management fees paid by liquidity providers (revenue).

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Ribbon Finance

# Ribbon Finance Average revenue per user (ARPU) Methodology

## 1. Overview

The Ribbon ARPU metric measures the average daily revenue generated per daily active user on the Ribbon protocol. Ribbon is a decentralized finance (DeFi) protocol that operates structured product vaults for yield generation strategies. ARPU is calculated by dividing the total daily revenue from vault management and performance fees by the number of unique daily active users who interact with Ribbon's vaults through deposits or withdrawals.

This metric helps evaluate the protocol's revenue efficiency and user monetization across different vault types and blockchain networks (Ethereum and Avalanche).

## 2. Data sources

The calculation utilizes several types of blockchain and external data:

- **Ribbon smart contract events**: Parsed vault interaction events including `CollectVaultFees`, `CollectPerformanceFee`, `CollectManagementFee`, `Deposit`, `Withdraw`, and `InstantWithdraw` events from ThetaVault, EarnVault, and TreasuryVault contracts across Ethereum and Avalanche
- **Token transfer events**: Ethereum `Transfer` events used to capture fee amounts for treasury vault operations
- **End-of-day token price feeds**: USD pricing data for converting fee amounts to dollar values
- **Token metadata**: Information about token decimals and contract addresses for proper amount calculations
- **Blockchain transaction data**: Transaction hashes, timestamps, and log indices for event identification and daily aggregation

## 3. Step-by-step calculation

### Component A: Revenue collection

- **Purpose**: Calculate total daily revenue from Ribbon vault management and performance fees
- **Logic**: Extract fee collection events from multiple Ribbon vault types across Ethereum and Avalanche. For ThetaVault and EarnVault contracts, collect `CollectVaultFees` events containing both performance fees (`performanceFee` field) and management fees (calculated as `vaultFee` minus `performanceFee`). For TreasuryVault contracts, separately collect `CollectPerformanceFee` and `CollectManagementFee` events and join with token transfer events to capture the actual fee amounts transferred to fee recipients. Filter out transactions identified as part of an overcharge bug using a predefined list of problematic transaction hashes. Exclude revenue from v1 vaults to focus on current vault versions.
- **Key fields**: `performanceFee` and `vaultFee` amounts from vault events, `managementFee` from treasury events, token addresses for fee denominations, transaction timestamps for daily aggregation

### Component B: User activity tracking

- **Purpose**: Count unique daily active users across all Ribbon vault interactions
- **Logic**: Extract user addresses from vault interaction events including deposits, withdrawals, and instant withdrawals across all vault types (ThetaVault, EarnVault, TreasuryVault) on both Ethereum and Avalanche. Capture the `account` parameter from each event which represents the user performing the action. Classify users as either "Depositor" or "Withdrawer" based on the event type. Aggregate users daily using HyperLogLog data structure to efficiently count distinct user addresses while supporting multiple dimensional breakdowns by chain, user type, and product.
- **Key fields**: `account` addresses from vault events, event types for user classification, block timestamps for daily grouping, chain identifiers for cross-network aggregation

### Component C: Fee amount processing

- **Purpose**: Standardize and convert all fee amounts to USD values
- **Logic**: For each fee collection event, identify the token in which fees are denominated using vault configuration data that maps vault addresses to their underlying token addresses. Apply decimal corrections based on each token's decimal places to convert raw blockchain amounts to human-readable values. Convert all fee amounts to USD using end-of-day price feeds matched by token address and event date. Sum performance fees and management fees for each transaction to calculate total revenue per event.
- **Key fields**: Token addresses from vault configurations, decimal places for amount corrections, USD prices from external feeds, aggregated fee totals

### Final aggregation

- **Combining components**: Join daily revenue totals with daily active user counts by matching on the event date. Both components are aggregated to daily granularity using timestamp truncation to day boundaries.
- **Currency conversion**: All fee amounts are converted to USD using end-of-day pricing data matched by token contract address and event date, ensuring consistent currency denomination across different vault token types
- **Time aggregation**: Events are grouped by day using timestamp truncation, with all calculations performed at daily granularity
- **Final calculation**: ARPU is computed by dividing the total daily revenue (sum of all performance and management fees in USD) by the total number of unique daily active users (distinct count of user addresses who performed any vault interaction). Missing data points are filled with zeros using a fill strategy to ensure complete time series coverage

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

Ribbon FinanceRBN

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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