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).

governance

github

twitter

discord

website

linkedin

Lending

Spark

SparkLend | Data breakdown

# Spark Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) is utilized to measure the daily revenue generated per active user across the Spark ecosystem over a fixed 24-hour window. Monetization efficiency across core products, including SparkLend, Spark Savings, and the Spark Liquidity Layer, is reflected by this metric. Financial interactions, such as lending operations on SparkLend and reward distributions from Sky on Spark Savings, are captured to evaluate overall protocol performance. Total daily protocol revenue is divided by the number of active users (daily) to provide a standardized measure of user-level value generation.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Daily active user tracking

- **Purpose**: Track unique active users (daily) across Spark products.
- **Logic**: Unique user addresses are extracted daily from interaction events across SparkLend and Spark Savings. For SparkLend, addresses are collected from `Borrow`, `FlashLoan`, `Repay`, `Supply`, and `Withdraw` events from `Pool` contracts. For Spark Savings, addresses are collected from `Deposit` and `Withdraw` events from `spETH`, `spUSDC`, `spUSDT`, `spPYUSD`, `sUSDC`, and `Spark Savings USDG` contracts. These addresses are aggregated daily to determine the total number of unique active users (daily) for the project.
- **Key fields**: `block_timestamp`, `user_address`, `product_id`, `chain_id`

### Component B: Protocol revenue aggregation

- **Purpose**: Aggregate total daily revenue from all Spark products.
- **Logic**: Daily revenue is compiled from SparkLend, Spark Savings, and the Spark Liquidity Layer. SparkLend revenue is calculated from interest accrued to the protocol (derived from `Mint` and `Burn` events from `VariableDebtToken` contracts and `ReserveDataUpdated` events from `Pool` contracts), flash loan fees from `FlashLoan` events from `Pool` contracts, liquidation protocol fees (extracted from `BalanceTransfer` events from `spToken` contracts to the treasury during liquidation events), and interest earned on treasury deposits (tracked via `MintedToTreasury` events from `Pool` contracts and `Mint` and `Burn` events from `spToken` contracts). Spark Savings revenue is composed of distribution rewards paid by Sky on referred balances, which are imported from daily reported data. Spark Liquidity Layer revenue is derived from gross yield generated on deployed capital and net gains from swap operations, which are sourced from daily reported accounting. All revenue values are normalized by decimal precision, converted to USD using end-of-day price feeds where applicable, and summed daily.
- **Key fields**: `timestamp`, `revenue`, `product_id`, `chain_id`

### Component C: Average revenue per user calculation

- **Purpose**: Calculate the final daily ARPU metric.
- **Logic**: The total daily protocol revenue in USD is divided by the total number of unique active users (daily). If no activity or revenue is recorded for a given day, the metric is filled with zero. The average USD value generated per active user over each 24-hour window is yielded by this division.
- **Key fields**: `revenue`, `user_dau`, `arpu`

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

SparkSPK

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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