Lenders deposit funds into Silo Finance and receive interest payments from borrowers (supply-side fees).

Silo Finance is a non-custodial lending protocol built on Sonic and other EVM-based blockchains. Silo Finance was founded by Aiham Jaabari and launched in 2021.

SILO tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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Lending

Silo Finance

# Silo Finance Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) measures the daily revenue generated per active user within the Silo Finance ecosystem. This metric reflects the protocol's ability to monetize its user base across its lending markets on a daily basis. ARPU is calculated by dividing the total daily revenue by the number of unique active users (daily) and is used to evaluate the financial efficiency of the protocol's various versions, including Silo Finance V1, V2, and V3.

## 2. Data sources

- **Blockchain events**: `Borrow`, `Deposit`, `Withdraw`, and `Repay` events from `SiloV1`, `SiloV2`, `SiloV3`, `Silo`, and `Silo1` contracts, plus `WithdrawnFees` events from `Silo1` contracts, covering Ethereum, Arbitrum, Base, Optimism, and 3 other chains
- **External data**: End-of-day price feeds and asset metadata
- **Revenue**: Derived from the Revenue metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Active user identification

- **Purpose**: Identify unique daily participants interacting with the protocol.
- **Logic**: `Borrow`, `Deposit`, `Withdraw`, and `Repay` events are parsed from `SiloV1`, `SiloV2`, `SiloV3`, `Silo`, and `Silo1` contracts. The `from_address` of the transaction initiating these events is extracted to identify the unique user. Interactions with specific markets and vaults associated with the Stream and Stable Labs collapse are excluded from the count.
- **Key fields**: `transaction_hash`, `from_address`, `address` (contract address)

### Component B: Protocol revenue tracking

- **Purpose**: Calculate the daily earnings retained by the protocol.
- **Logic**: Protocol fee balances are retrieved from contract state snapshots. For V2 deployments, fees already withdrawn—identified via `WithdrawnFees` events as the sum of `daoFees` and `deployerFees`—are added back to the current state to reconstruct the pre-withdrawal balance. Daily revenue is then determined by taking the non-negative difference between consecutive daily snapshots. Specific markets and vaults, such as those impacted by the Stream collapse, are filtered out of the calculation.
- **Key fields**: `in_daoFees`, `in_deployerFees`, `result` (state snapshot), `silo_address`

### Component C: USD normalization and aggregation

- **Purpose**: Normalize revenue values to USD for cross-chain comparison.
- **Logic**: Revenue amounts are normalized by decimal precision and multiplied by end-of-day asset prices. Daily totals are aggregated across all supported chains and protocol versions.
- **Key fields**: `timestamp`, `token_address`, `price_usd`

### Component D: ARPU derivation

- **Purpose**: Calculate the final average revenue per user.
- **Logic**: The total daily revenue in USD is divided by the total number of unique active users (daily). The calculation is performed at the project level using UTC day boundaries. If no activity is detected for a given day, the value is set to zero.
- **Key fields**: `revenue`, `user_dau` (active users daily)

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

Silo FinanceSILO

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape