Overcollateralized borrowers deposit funds into Synthetix and mint synthetic assets.

Synthetix is a non-custodial derivatives exchange protocol built on Ethereum. Synthetix was founded by Kain Warwick and launched in 2017.

SNX tokenholders own and govern the protocol. They currently take all of the total trading fees paid by traders (revenue). Synthetix's investors include Paradigm, Framework Ventures, Coinbase Ventures, etc.

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Synthetix

# Synthetix Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Synthetix protocol. This metric answers the business question: "How much revenue does Synthetix generate per active user on average?" The calculation divides total daily revenue by the count of unique daily active users across all Synthetix products on Ethereum and Optimism.

## 2. Data sources

The ARPU calculation relies on the following raw data sources:

- **Token transfer events**: Parsed `Transfer` events from Ethereum and Optimism showing sUSD tokens sent to Synthetix's fee collector contract address
- **Synthetix v1 trading events**: Parsed `SynthExchange` and `AtomicSynthExchange` events from Ethereum, and `SynthExchange` and `PositionModified` events from Optimism futures markets  
- **Synthetix v2 perpetual futures events**: Parsed `PositionModified` events from ProxyPerpsV2 and ProxyPerpsV21 contracts on Optimism
- **Market registry events**: `MarketAdded` events from FuturesMarketManager to create exclusion lists preventing double-counting between protocol versions
- **End-of-day price feeds**: USD price data for sUSD token conversion
- **Token metadata**: Decimal precision information for proper amount calculation

## 3. Step-by-step calculation

### Component A: Revenue calculation

- **Purpose**: Calculate total daily revenue from exchange fees collected by Synthetix
- **Logic**: Identify all sUSD token transfers to the Synthetix fee collector address (`0xfeefeefeefeefeefeefeefeefeefeefeefeefeef`) on both Ethereum and Optimism. On Ethereum, track transfers of sUSD token contract `0x57ab1ec28d129707052df4df418d58a2d46d5f51`. On Optimism, track transfers of sUSD token contract `0x8c6f28f2f1a3c87f0f938b96d27520d9751ec8d9`. Convert all amounts from raw token units to USD using end-of-day price feeds and apply decimal correction. Aggregate total fees collected per day. Since Synthetix liquidity providers are also SNX stakers who receive all fees, the entire fee amount represents protocol revenue with no supply-side fees deducted.
- **Key fields**: `block_timestamp` for daily aggregation, `token_address` for sUSD identification, `value` for fee amounts, `to_address` for fee collector filtering

### Component B: Daily active user calculation

- **Purpose**: Count unique users actively trading on Synthetix across all products and versions
- **Logic**: Collect user addresses from multiple types of Synthetix trading events. For Synthetix v1, extract users from `SynthExchange` and `AtomicSynthExchange` events on Ethereum (spot trading), and `SynthExchange` and `PositionModified` events on Optimism (spot and perpetual futures trading). For Synthetix v2, extract users from `PositionModified` events on ProxyPerpsV2 and ProxyPerpsV21 perpetual futures contracts on Optimism. Apply a denylist using `MarketAdded` events from FuturesMarketManager to exclude v1 perpetual futures contracts from v2 user counts, preventing double-counting. Classify users by type: Ethereum Spot Trader, Optimism Spot Trader, Optimism Perpetual Futures Trader, and Optimism Perpetual Futures V2 Trader. Use HyperLogLog sketching to efficiently count distinct users across multiple dimensions including chain, user type, and product.
- **Key fields**: `account` from trading events for user identification, `block_timestamp` for daily aggregation, contract `address` for market identification, event-specific parameters for user classification

### Component C: User aggregation with HyperLogLog

- **Purpose**: Efficiently aggregate unique user counts across different dimensions while handling large datasets
- **Logic**: Apply HyperLogLog initialization to user addresses within each day, creating probabilistic sketches that allow efficient distinct counting. Merge HyperLogLog sketches across different dimensions: project-level (all users), chain-level (Ethereum vs Optimism), user-type-level (different trader categories), and product-level. Extract final distinct user counts from merged sketches to get total daily active users across all Synthetix products.
- **Key fields**: `user_dau` addresses converted to HyperLogLog sketches, `dimensions` for aggregation levels, `chain_id` and `user_type` for dimensional breakdowns

### Final aggregation

- **Combining components**: The revenue component provides total daily USD revenue from sUSD fees. The user component provides total daily active users across all Synthetix products using HyperLogLog-aggregated distinct counts from trading events.
- **Currency conversion**: sUSD token amounts are converted to USD using end-of-day price feeds with decimal correction applied to handle token precision properly
- **Time aggregation**: Both revenue and user data are truncated to daily boundaries using timestamp truncation, ensuring consistent time alignment
- **Final calculation**: ARPU equals Daily Revenue in USD divided by Daily Active Users count. The calculation uses a fill-zeros strategy to handle missing data points, ensuring continuous time series data. Chain availability filters are applied to maintain data consistency across supported blockchain networks.

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

SynthetixSNX

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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