Traders exchange funds through request for quotation system built on 0x protocol and aggregated AMMs. Tokenlon collects a trading fee (revenue) from trades.

Tokenlon is a non-custodial exchange protocol built on Ethereum. Tokenlon was founded by imToken team and launched in 2018.

LON tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Tokelon's investors include IDG Capital, Qiming Venture Partners, Breyer Capital, etc.

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# Tokenlon Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Tokenlon DEX aggregator platform. This metric is calculated by dividing daily revenue by daily active users, providing insight into user monetization effectiveness. The calculation uses data from Tokenlon's trading activities across Ethereum and Arbitrum networks, where revenue is derived from trading fees collected by the protocol.

## 2. Data sources

- **Ethereum contract events**: Parsed `Fill` events from ZeroExchange contracts, `Swapped` events from AMMWrapper and AMMWrapperWithPath contracts, `FillOrder` events from PMM and RFQ contracts
- **Arbitrum contract events**: Parsed `LimitOrderFilledByProtocol` events from LimitOrder contracts  
- **Transaction data**: Ethereum and Arbitrum transaction records containing sender addresses and transaction metadata
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal corrections
- **Contract addresses**: Events filtered to Tokenlon's specific contract address (`0xb9e29984fe50602e7a619662ebed4f90d93824c7`) as fee recipient or taker

## 3. Step-by-step calculation

### Component A: Fee collection tracking

- **Purpose**: Captures all fees collected by Tokenlon from trading activities across different contract versions and chains
- **Logic**: Extracts fee data from multiple event types. For ZeroExchange `Fill` events, applies a 0.3% fee rate to the `takerAssetFilledAmount` field. For other event types including `Swapped`, `FillOrder`, and `LimitOrderFilledByProtocol`, calculates fees as the difference between `receivedAmount` and `settleAmount` or similar profit/settlement fields. Events are filtered to include only those where Tokenlon's address appears as the fee recipient or taker. Native token addresses are converted to their wrapped equivalents for standardization
- **Key fields**: `takerAssetFilledAmount` for volume-based fees, `receivedAmount` and `settleAmount` for profit calculations, `makerAssetAddr`/`takerAssetAddr` for token identification, `feeRecipientAddress` for validation

### Component B: Revenue calculation

- **Purpose**: Converts collected fees to USD-denominated revenue figures
- **Logic**: Takes fee amounts from component A and applies token decimal corrections based on token metadata. Converts all fee amounts to USD using end-of-day price feeds matched by token address and date. Aggregates daily by timestamp, chain, and token. Since Tokenlon retains 100% of collected fees, all fee amounts are treated as revenue
- **Key fields**: `amount` for fee values, `token_address` for price lookup, `block_timestamp` truncated to day for aggregation

### Component C: Daily active user tracking

- **Purpose**: Identifies and counts unique users who perform trades each day
- **Logic**: Extracts trading events from the same contract sources used for fee collection. Joins trade events with transaction data to obtain the `from_address` field representing the user who initiated each trade. Groups by daily timestamp and counts distinct user addresses using HyperLogLog aggregation for efficient computation. Users are classified as 'Trader' type since all activity represents trading behavior
- **Key fields**: `from_address` from transaction data as the user identifier, `transaction_hash` for joining events to transactions, `block_timestamp` for daily grouping

### Final aggregation

- **Combining components**: Daily revenue totals are divided by daily active user counts for the same date and chain. The calculation uses a standard ARPU formula where ARPU = Total Daily Revenue ÷ Daily Active Users
- **Currency conversion**: All revenue is already converted to USD in component B using end-of-day token price feeds
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: For each day, sum all revenue and divide by the count of distinct active users, resulting in average revenue per user per day. Days with no activity are filled with zero values to maintain complete time series

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

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Average revenue per user (ARPU)

Average revenue per user (ARPU)

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