Overcollateralized borrowers deposit funds into Vesta Finance and borrow VST stablecoin.

Vesta Finance is a non-custodial stablecoin protocol built on Arbitrum. Vesta Finance was founded by Mikey Milken and launched in 2022.

VSTA tokenholders own and govern the protocol. They currently take all of the total interest paid by borrowers (revenue).

governance

github

twitter

discord

etherscan

website

Stablecoin issuers

Vesta Finance

# Vesta Finance Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) measures the daily average fee revenue generated per active user on the Vesta protocol. This metric helps assess the monetization efficiency and user value generation of Vesta's stablecoin borrowing platform. The calculation divides total daily fee revenue by the number of daily active users, providing insight into how much revenue each user contributes on average. Vesta operates as a stablecoin issuer on Arbitrum, allowing users to borrow VST (Vesta Stable) tokens against collateral while paying various fees.

## 2. Data sources

The calculation relies on several types of raw blockchain data from Vesta's v1 protocol on Arbitrum:

- **Fee event logs**: Parsed Arbitrum event logs capturing borrowing fees (`VSTBorrowingFeePaid`), interest payments (`InterestMinted`), performance fees from GLP and GMX staking (`Treasury SafeReceived`), and redemption fees (`VaultManager Redemption`)
- **User activity logs**: Parsed Arbitrum event logs tracking trove creation (`BorrowerOperations TroveCreated`) and trove updates (`BorrowerOperations TroveUpdated`) to identify active users
- **Protocol price feeds**: VST token price updates from Vesta's own price feed events (`PriceFeed TokenPriceUpdated`)
- **External price data**: End-of-day token price feeds for WETH and other tokens used in fee calculations
- **Token metadata**: Contract addresses and decimal configurations for VST and WETH tokens

## 3. Step-by-step calculation

### Component A: VST token fees (borrowing fees and interest)

- **Purpose**: Captures fees paid in VST tokens from borrowing activities and interest accrual
- **Logic**: Extracts borrowing fee events where users pay VST fees when borrowing against collateral, and interest minting events where VST is minted to cover accrued interest. Raw amounts are converted from 18-decimal wei format to token units. Events are filtered to the specific VST token address `0x64343594ab9b56e99087bfa6f2335db24c2d1f17` on Arbitrum
- **Key fields**: `VSTFee` amounts from borrowing operations and `interestMinted` amounts from interest manager events, both denominated in VST tokens

### Component B: WETH token fees (performance and redemption fees)

- **Purpose**: Captures fees paid in WETH and other collateral tokens from protocol performance and redemption activities  
- **Logic**: Extracts treasury received events from GLP staking (`0xdb607928f10ca503ee6678522567e80d8498d759`) and GMX staking (`0xb9b8f95568d5a305c6d70d10cc1361d9df3e9f9a`) contracts, plus redemption fees from vault manager operations. Handles null address mapping to WETH address. Applies decimal correction using protocol-specific token metadata
- **Key fields**: `value` amounts from treasury events and `AssetFee` amounts from redemption events, denominated in various collateral tokens but primarily WETH

### Component C: VST price conversion

- **Purpose**: Converts VST token fees to USD values using protocol-reported prices
- **Logic**: Uses VST price update events from Vesta's price feed to establish daily VST/USD exchange rates. Raw prices are converted from 18-decimal format. Missing days are forward-filled with the last known price, and historical data is padded with a starting price of $0.99 from January 1, 2022. Daily prices are calculated by averaging all price updates within each day
- **Key fields**: `price` values from price feed update events, representing VST/USD exchange rate

### Component D: WETH price conversion  

- **Purpose**: Converts WETH and other collateral token fees to USD values
- **Logic**: Applies external end-of-day token price feeds to convert collateral token amounts to USD. Uses decimal correction macros to ensure proper token unit conversion before applying USD prices
- **Key fields**: Token-specific price feeds providing USD exchange rates for collateral tokens

### Component E: Daily active users

- **Purpose**: Counts unique users interacting with the protocol each day
- **Logic**: Identifies user addresses from trove creation events (new borrowers) and trove update events (existing borrowers making changes). Uses HyperLogLog (HLL) approximation algorithm for efficient distinct counting. Aggregates across multiple dimensional breakdowns including chain, user type, and product level
- **Key fields**: `borrower` addresses from trove operations, categorized as either "Trove Creator" or "Trove Updater" user types

### Final aggregation

- **Combining components**: VST fees (converted to USD) are summed with WETH/collateral fees (converted to USD) to calculate total daily fee revenue. Daily active users are counted using HLL aggregation to handle the scale of user data efficiently
- **Currency conversion**: All fee amounts are converted to USD using respective token prices - VST fees use protocol price feeds while collateral token fees use external price feeds, both applied at daily granularity
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation. All events within a calendar day are grouped together for both fees and user counts
- **Final calculation**: Average fees per user is calculated by dividing total daily fee revenue (in USD) by the daily active user count, providing the per-user monetization metric. Missing days in the time series are filled with zero values to maintain continuity

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

Vesta FinanceVSTA

Average fees per user (AFPU)

Average fees per user (AFPU)

Competitive landscape