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).

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Vesta Finance

# Vesta Finance Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) for Vesta Finance measures the daily revenue generated per active user of the protocol. This metric is calculated by dividing total daily revenue by the number of daily active users. The metric provides insight into the protocol's ability to monetize its user base through various fee mechanisms including borrowing fees, interest payments, performance fees, and redemption fees.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Vesta protocol events**: Parsed Arbitrum event logs from Vesta v1 contracts capturing borrowing operations, interest management, treasury operations, and vault management activities
- **User activity events**: `BorrowerOperations_TroveCreated` and `BorrowerOperations_TroveUpdated` events tracking trove creators and updaters
- **Fee collection events**: `VSTBorrowingFeePaid`, `InterestMinted`, `SafeReceived`, and `Redemption` events capturing different revenue streams
- **Price feed events**: `TokenPriceUpdated` events from Vesta's price feed contract for VST token pricing
- **External price feeds**: End-of-day token price feeds for WETH and other assets used in fee calculations
- **Token metadata**: Token decimal information for proper amount normalization

## 3. Step-by-step calculation

### Component A: VST-denominated fee collection
- **Purpose**: Captures borrowing fees and interest payments denominated in VST tokens
- **Logic**: Extract VST borrowing fees from `BorrowerOperations_VSTBorrowingFeePaid` events and interest amounts from `InterestManager_InterestMinted` events. Convert raw amounts from wei to tokens by dividing by 10^18. Apply VST token prices from protocol price feed events, using daily averages where multiple price updates exist. Fill missing price days using forward-fill strategy starting from hardcoded $0.99 initial price
- **Key fields**: `VSTFee` and `interestMinted` amounts, VST token address (0x64343594ab9b56e99087bfa6f2335db24c2d1f17), daily price from price feed events

### Component B: WETH-denominated fee collection  
- **Purpose**: Captures performance fees and redemption fees denominated in WETH and other assets
- **Logic**: Extract GLP and GMX performance fees from treasury `SafeReceived` events where sender addresses match GLP staking (0xdb607928f10ca503ee6678522567e80d8498d759) or GMX staking (0xb9b8f95568d5a305c6d70d10cc1361d9df3e9f9a) contracts. Extract redemption fees from `VaultManager_Redemption` events, mapping null addresses to WETH address. Apply decimal correction using token metadata, then convert to USD using end-of-day price feeds
- **Key fields**: `value` from SafeReceived events, `AssetFee` from redemption events, asset addresses, WETH address (0x82af49447d8a07e3bd95bd0d56f35241523fbab1)

### Component C: User activity tracking
- **Purpose**: Identifies and counts unique daily active users of the protocol
- **Logic**: Track user addresses from trove creation events (`BorrowerOperations_TroveCreated`) identifying new borrowers and trove update events (`BorrowerOperations_TroveUpdated`) identifying active borrowers. Categorize users as "Trove Creator" or "Trove Updater" based on event type. Aggregate to daily unique counts using HyperLogLog algorithm across multiple dimensions including project level, chain level, user type, and product level
- **Key fields**: `borrower` addresses from both event types, block timestamps for daily aggregation, user type classification

### Component D: Revenue aggregation
- **Purpose**: Combines all fee types into total daily revenue
- **Logic**: Union VST-denominated fees (already in USD) with WETH-denominated fees (converted to USD). Aggregate by day, chain, and business classification fields (market sector: 'stablecoin_issuers', business segment: 'stablecoin_issuer'). All fees are classified under 'Stablecoin issuer' business line
- **Key fields**: Daily aggregated `fees` amounts in USD, timestamp truncated to day boundaries

### Final aggregation
- **Combining components**: Revenue totals are divided by user DAU counts using the `calculate_arpu` macro, matching on timestamp and data identifier ('vesta')
- **Currency conversion**: All revenue components are already converted to USD - VST fees using protocol price feeds, WETH fees using external price feeds
- **Time aggregation**: Both revenue and user metrics use daily boundaries with timestamp truncation to day level
- **Final calculation**: ARPU = Total Daily Revenue (USD) / Daily Active Users, with zero-filling applied for days with missing data to ensure consistent time series

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

Vesta FinanceVSTA

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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