Liquidity providers deposit funds into LFJ and receive trading fees from traders (supply-side fees).

LFJ (previously Trader Joe) is a non-custodial exchange protocol built on Avalanche (originally a fork of SushiSwap). LFJ was founded by an anonymous team and launched in 2021.

JOE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). LFJ's investors include Three Arrows Capital, DeFiance Capital, GBV Capital, Mechanism Capital, etc.

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# LFJ Average revenue per user (ARPU) Methodology

## 1. Overview

ARPU measures the average daily revenue generated per active user on the TraderJoe decentralized exchange. This metric is calculated by dividing total daily revenue by the number of daily active users, providing insight into the revenue efficiency per user. The calculation aggregates data across multiple TraderJoe protocol versions (v1, v2, v2.1, v2.2) and multiple blockchain networks (Ethereum, Arbitrum, Avalanche, BSC).

## 2. Data sources

- **Blockchain swap events**: Parsed `Swap` events from TraderJoe contracts across different versions - `Pair_Swap_event` for v1, `LBPair_Swap_event` for v2, `LBPairV2_Swap_event` for v2.1, and `LBPairV22_Swap_event` for v2.2
- **Transaction records**: Ethereum, Arbitrum, Avalanche, and BSC transaction data to identify actual user wallet addresses
- **Factory events**: TraderJoe factory contract events (`PairCreated`, `LBPairCreated`) that identify valid trading pairs
- **Fee parameter events**: `FeeParametersSet` events from v2+ contracts that track protocol fee tier changes
- **Token price feeds**: End-of-day token price data for USD conversion
- **Token metadata**: Token decimals and symbols for proper amount normalization
- **Denylist data**: Hardcoded list of trading pairs with limited price feed support

## 3. Step-by-step calculation

### Component A: Trade data collection
- **Purpose**: Collect all swap transactions across TraderJoe protocol versions and chains
- **Logic**: Extract swap events from four different TraderJoe versions. For v1, collect `Pair_Swap_event` logs from Avalanche and BSC containing swap amounts. For v2, collect `LBPair_Swap_event` logs from Ethereum, Arbitrum, BSC, and Avalanche with trade direction and fee information. For v2.1 and v2.2, collect encoded swap data from `LBPairV2_Swap_event` and `LBPairV22_Swap_event` logs and decode the packed fee and amount data using JavaScript functions. Join each swap event with corresponding transaction records to get the user wallet address from `from_address` field. Exclude trading pairs from the denylist due to limited price feed support.
- **Key fields**: `transaction_hash` for linking to user data, `amount_in`/`amount_out` for trade volumes, `fees` and `protocol_fees` for revenue calculation, decoded `amountsX`/`amountsY` for v2.1/v2.2 token amounts

### Component B: Trading pair validation and metadata
- **Purpose**: Identify valid trading pairs and obtain token metadata for decimal correction
- **Logic**: Collect trading pair creation events from TraderJoe factory contracts across all versions and chains. Extract `token0_address`, `token1_address`, and `pair_address` from factory events. Join with token metadata to get decimal places and symbols for each token in the pair. Filter out denylisted trading pairs that have limited price feed support for low liquidity tokens.
- **Key fields**: `account_address` for trading pair identification, `token0_address` and `token1_address` for the pair tokens, `token0_decimals` and `token1_decimals` for amount normalization

### Component C: Revenue calculation by version
- **Purpose**: Calculate protocol revenue based on version-specific fee structures
- **Logic**: Apply different revenue calculation methods based on TraderJoe version. For v1 on Avalanche, calculate revenue as 0.05% of trading volume since fees are implicit. For v1 on BSC, set revenue to zero as the protocol takes no fees. For v2 protocols, use actual protocol fees from swap events - multiply total fees by the protocol fee tier percentage obtained from `FeeParametersSet` events. For v2.1 and v2.2, use the directly reported `protocolFees` from decoded swap data. Aggregate fees and revenue amounts by token, correct for token decimals, and convert to USD using end-of-day price feeds.
- **Key fields**: `token0_revenue` and `token1_revenue` for protocol earnings, `protocol_fee_tier` for v2 fee percentage, `trading_volume` for v1 revenue calculation

### Component D: Daily active user counting
- **Purpose**: Count unique users who performed swaps each day
- **Logic**: Collect user addresses from transaction records linked to swap events across all TraderJoe versions and chains. Group by day and count distinct `user_address` values representing unique wallet addresses that initiated trades. Use HyperLogLog aggregation for efficient counting across multiple data sources. Apply union distinct operations when combining users across different protocol versions to avoid double-counting users who trade on multiple versions in the same day.
- **Key fields**: `user_address` from transaction `from_address`, `timestamp` truncated to day for daily aggregation

### Final aggregation
- **Combining components**: Join daily revenue totals with daily active user counts on the same date dimension
- **Currency conversion**: Convert token amounts to USD using end-of-day price feeds matched by token address, chain, and date. For trading pairs, use the lesser of the two token USD values to filter out price manipulation
- **Time aggregation**: Aggregate all metrics to daily boundaries using timestamp truncation to day level
- **Final calculation**: Divide total daily revenue (in USD) by the count of daily active users to get average revenue per user for each day. Apply zero-filling strategy for days with no trading activity

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

LFJJOE

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape