Liquidity providers deposit collateral and mint volatility tokens. Traders can then purchase these volatility tokens to express views on market volatility.

Volmex enables VIX-like indices for crypto assets and trading functionality on Ethereum. Volmex was founded by Cole Kennelly and launched in 2021.

The Volmex team and investors own and govern the protocol. They currently charge a minting and redemption fee (revenue). Volmex’s investors include Three Arrows Capital, Robot Ventures, CMS Holdings etc.

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Volmex

# Volmex Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average amount of fees paid per daily active user on the Volmex protocol. This metric helps assess user monetization and fee efficiency by dividing total daily fees by the number of unique daily active users. Volmex is a volatility trading protocol that allows users to mint and redeem volatility tokens using collateral, generating fees from these operations.

## 2. Data sources

The AFPU calculation uses the following data sources:
- **Volmex smart contract events**: Parsed `CollateralToken_Collateralized_event` and `CollateralToken_Redeemed_event` logs from Ethereum, Arbitrum, and Polygon chains containing user addresses and fee amounts
- **Vault configuration data**: Static mapping of 12 vault addresses across the three chains to their corresponding collateral token addresses (DAI and USDC)
- **End-of-day token price feeds**: USD price data for converting DAI and USDC fees to USD values
- **Token metadata**: Decimal precision information for proper token amount calculations

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Calculate the number of unique users interacting with Volmex vaults each day
- **Logic**: Extract user addresses from Volmex collateralization and redemption events across Ethereum, Arbitrum, and Polygon. Identify two user types: minters (from `CollateralToken_Collateralized_event` using `sender` field) and redeemers (from `CollateralToken_Redeemed_event` using `sender` field). Truncate timestamps to daily boundaries and use HyperLogLog (HLL) aggregation for efficient distinct user counting across multiple dimensions including project-level, chain-level, user-type-level, and product-level breakdowns.
- **Key fields**: `block_timestamp` for daily aggregation, `sender` as `user_address`, `chain` for multi-chain analysis, `user_type` for distinguishing minters vs redeemers

### Component B: Daily fees calculation
- **Purpose**: Calculate total fees generated from Volmex vault operations in USD
- **Logic**: Extract fee amounts from the same collateralization and redemption events using the `fees` field. Join event data with vault dimension table to map vault addresses to their corresponding collateral token addresses (DAI or USDC). Convert token-denominated fees to USD using end-of-day price feeds and apply decimal correction based on token specifications. Aggregate fees daily across various dimensions matching the user calculation structure.
- **Key fields**: `fees` as the raw fee amount, `vault_address` for token identification, `token_address` for price lookup, `amount` as the processed fee value

### Final aggregation
- **Combining components**: The daily fees totals are divided by daily active user counts using the calculate ARPU macro, which performs the mathematical division operation across matching dimensional breakdowns (project-level, chain-level, user-type-level, product-level)
- **Currency conversion**: All fees are converted to USD using end-of-day price feeds with proper decimal adjustment for DAI (18 decimals) and USDC (6 decimals) tokens
- **Time aggregation**: Both user and fee data are aggregated to daily boundaries using timestamp truncation, ensuring consistent time-based alignment
- **Final calculation**: AFPU equals total daily fees in USD divided by the count of unique daily active users, with the result standardized using the finalize metric macro and missing days filled with zeros

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

Volmex

Average fees per user (AFPU)

Average fees per user (AFPU)

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