Liquidity providers deposit funds to the lending pool and receive a portion of the interest (supply-side fees).

TrueFi is a non-custodial lending protocol built on Ethereum offering undercollateralized loans for verified borrowers. TrueFi was founded by Rafael Cosman and launched in 2020.

TRU tokenholders own and govern the protocol. They currently take a cut of the interest and an origination fee (revenue). TrueFi’s investors include a16z, BlockTower Capital, Alameda Research etc.

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Lending

TrueFi

# TrueFi Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) for TrueFi measures the daily revenue generated per active user across TrueFi's lending protocol. This metric helps assess the monetization efficiency of the platform by dividing total daily protocol revenue by the number of distinct users who interact with TrueFi lending pools each day. The calculation combines revenue data from three versions of TrueFi (v1, v2, v3) with user activity tracking across depositors and withdrawers.

## 2. Data sources

- **User activity events**: Parsed Ethereum `Pool_Joined_event` and `Pool_Exited_event` logs from TrueFi v1 and v2 pools, and `ManagedPortfolio_Deposited_event` and `ManagedPortfolio_Withdrawn_event` logs from TrueFi v3 portfolios
- **Borrowing activity**: Parsed `Pool_Borrow_event` logs from TrueFi v1, `TrueLender_fund_function` call traces from TrueFi v2, and `ManagedPortfolio_BulletLoanCreated_event` logs from TrueFi v3
- **Repayment tracking**: Parsed `LoanToken_Settled_event` and `SAFU_Liquidated_event` logs from TrueFi v2
- **Portfolio management**: Parsed `ManagedPortfolioFactory_createPortfolio_function` call traces, `ManagedPortfolioFactory_PortfolioCreated_event` logs, and `ManagedPortfolio_ManagerFeeChanged_event` logs from TrueFi v3
- **Token transfers**: Ethereum token transfer events to track actual borrowed amounts and fees
- **Price data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token symbols, decimals, and addresses for proper data normalization

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Count unique users who interact with TrueFi lending pools daily
- **Logic**: Extract user addresses from lending activity events across all TrueFi versions. Include both depositors (from `Pool_Joined_event` and `ManagedPortfolio_Deposited_event`) and withdrawers (from `Pool_Exited_event` and `ManagedPortfolio_Withdrawn_event`). Group events by day and count distinct user addresses using HyperLogLog aggregation for efficient computation across multiple dimensions
- **Key fields**: `user_address` from event logs, `block_timestamp` truncated to daily intervals, `user_type` (Depositor or Withdrawer)

### Component B: TrueFi v1 revenue calculation
- **Purpose**: Calculate protocol fees from TrueFi v1 borrowing activity
- **Logic**: Extract borrowing events from TrueFi v1 pools and join with corresponding token transfer events to identify fees. Use the direct `fee` amount from `Pool_Borrow_event` logs as protocol revenue. Convert fee amounts to USD using end-of-day price feeds and aggregate by day
- **Key fields**: `fee` amount from borrow events, `token_address` for price conversion, `block_timestamp` for daily aggregation

### Component C: TrueFi v2 revenue calculation
- **Purpose**: Calculate protocol share of interest earned from TrueFi v2 loans
- **Logic**: Identify loan origination amounts from `TrueLender_fund_function` calls joined with token transfers. Track loan settlements from `LoanToken_Settled_event` logs to get repayment amounts. Calculate total interest as the difference between repayment and principal amounts. Apply 10% protocol cut to total interest earned. Exclude liquidated loans from interest calculation
- **Key fields**: `value` from token transfers (principal), `returnedAmount` from settlement events (repayment), calculated interest differential

### Component D: TrueFi v3 revenue calculation
- **Purpose**: Calculate combined protocol and manager fees from TrueFi v3 lending activity
- **Logic**: Extract loan creation events from `ManagedPortfolio_BulletLoanCreated_event` logs and join with portfolio metadata. Calculate protocol origination fee as 0.5% annually based on loan duration (amount × loan_duration_seconds ÷ seconds_in_year × 0.005). Calculate manager fees using current manager fee rate at loan creation time, applying any fee changes from `ManagedPortfolio_ManagerFeeChanged_event` logs. Sum protocol and manager fees as total v3 revenue
- **Key fields**: `principalAmount` (loan size), `loanDuration` (loan term), `managerFee` rates, calculated fee components

### Final aggregation
- **Combining components**: Union revenue from all three TrueFi versions, converting each to USD using end-of-day price feeds and aggregating by daily timestamps. Sum total daily revenue across all versions and fee types
- **Currency conversion**: Apply end-of-day USD prices to token amounts with proper decimal adjustment based on token metadata. Handle different token denominations across lending pools
- **Time aggregation**: Group all revenue and user activity by daily boundaries using timestamp truncation to day level
- **Final calculation**: Divide total daily revenue (in USD) by total daily active users to produce ARPU. Apply fill-zero strategy for days with no activity to maintain consistent time series data

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

TrueFiTRU

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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