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

Spark is a non-custodial lending protocol built on Ethereum. Spark’s development team Phoenix Labs was founded in early 2023.

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

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Lending

Spark

SparkLend | Data breakdown

# Spark Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is calculated as the total daily fees divided by active users (daily) over a fixed 24-hour window. The average amount paid by an individual user for the protocol's services on a daily basis is represented by this metric. Fee generation and user activity are aggregated across SparkLend, Spark Savings, and the Spark Liquidity Layer, including rewards distributed by Sky. This metric is utilized to evaluate user monetization and protocol usage efficiency.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: SparkLend fee extraction

- **Purpose**: Capture fees generated from SparkLend lending activities
- **Logic**: Fees are extracted from multiple sources within SparkLend. Interest accrued to the protocol and treasury is calculated using `ReserveDataUpdated` events from `Pool` contracts and `ReserveFactorChanged` events from `PoolConfigurator` contracts, which are applied to outstanding deposit and debt balances. Liquidation fees are captured from `LiquidationCall` events from `Pool` contracts, combined with protocol liquidation fee factors from `LiquidationProtocolFeeChanged` events from `LendingPoolConfigurator` contracts. Flash loan fees are extracted from `FlashLoan` events from `Pool` contracts. All amounts are normalized by decimal precision and converted to USD.
- **Key fields**: `fees`, `amount`, `interest_accrued_to_protocol`, `interest_accrued`, `revenue`, `fees_supply_side`

### Component B: Spark Savings and Spark Liquidity Layer fee extraction

- **Purpose**: Capture fees and yield generated from Spark Savings and the Spark Liquidity Layer
- **Logic**: Spark Savings fees are captured from daily reported distribution rewards paid by Sky on referred balances. Spark Liquidity Layer fees, including gross yield on deployed capital and swap P&L gains from Curve and Uniswap swaps, are extracted from daily accounting snapshots. The Spark Liquidity Layer's yield on its SparkLend supply is calculated on-chain and netted from SparkLend's interest. All values are normalized and converted to USD.
- **Key fields**: `reward_usd`, `gross_yield_usd`, `spark_revenue_usd`, `interest`

### Component C: Daily active user aggregation

- **Purpose**: Calculate the active users (daily) across Spark products
- **Logic**: active users (daily) are identified by extracting unique user addresses from transaction events. For SparkLend, addresses are parsed from `Borrow`, `FlashLoan`, `Repay`, `Supply`, and `Withdraw` events from `Pool` contracts. For Spark Savings, addresses are parsed from `Deposit` and `Withdraw` events from `spETH`, `spUSDC`, `spUSDT`, `spPYUSD`, `sUSDC`, and `Spark Savings USDG` contracts. The distinct count of user addresses is aggregated daily to determine the active users (daily).
- **Key fields**: `user_address`, `block_timestamp`

### Component D: Average fees per user calculation

- **Purpose**: Calculate the final average fees per user (AFPU) metric
- **Logic**: The total daily fees generated across all products are divided by the total active users (daily) for each 24-hour window. If no activity is recorded for a given day, the metric is zero-filled.
- **Key fields**: `fees`, `user_dau`, `afpu`

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

SparkSPK

Average fees per user (AFPU)

Average fees per user (AFPU)

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