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 revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Volmex protocol. This metric answers the business question "How much revenue does each active user generate on average?" and is calculated by dividing daily protocol revenue by daily active users. Volmex is a volatility trading protocol offering ETHV and BTCV perpetual products with DAI and USDC collateral options across Ethereum, Arbitrum, and Polygon.

## 2. Data sources

The calculation relies on these raw data sources:
- **Blockchain events**: Parsed `CollateralToken_Collateralized_event` and `CollateralToken_Redeemed_event` logs from Volmex vault contracts on Ethereum, Arbitrum, and Polygon
- **Transaction data**: Ethereum, Arbitrum, and Polygon transaction records containing the collateralization and redemption events
- **External data**: End-of-day price feeds for USD conversion and token metadata for decimal correction
- **Protocol configuration**: Hardcoded list of 12 Volmex vault contract addresses across three chains with corresponding collateral token addresses

## 3. Step-by-step calculation

### Component A: Vault identification and configuration
- **Purpose**: Define the universe of Volmex trading venues and their associated tokens
- **Logic**: A hardcoded configuration identifies 12 Volmex vaults across Ethereum, Arbitrum, and Polygon. Each vault represents a combination of volatility product (ETHV or BTCV) and collateral type (DAI or USDC). The configuration maps each vault address to its corresponding collateral token address and chain, ensuring only legitimate Volmex trading activity is captured
- **Key fields**: `vault_address`, `token_address`, `chain`, `token_symbol`

### Component B: Trading fee extraction
- **Purpose**: Extract trading fees from Volmex collateralization and redemption activities
- **Logic**: Trading fees are collected from two types of Volmex protocol events. `CollateralToken_Collateralized_event` captures fees when users mint volatility tokens by depositing collateral. `CollateralToken_Redeemed_event` captures fees when users burn volatility tokens to withdraw collateral. Both events contain a `fees` field representing the fee amount charged. Events are filtered to only include those from known Volmex vault addresses using the vault configuration. All events are classified as volatility trading in the derivatives market sector with perpetual business segments
- **Key fields**: `fees`, `vault_address`, `block_timestamp`, `transaction_hash`, `token_address`

### Component C: User identification 
- **Purpose**: Identify unique users engaging with Volmex protocol daily
- **Logic**: Users are identified from the same `CollateralToken_Collateralized_event` and `CollateralToken_Redeemed_event` logs used for fee extraction. The `sender` field in each event represents the user address initiating the transaction. Users from collateralization events are classified as 'Minter' type, while users from redemption events are classified as 'Redeemer' type. The same user address can appear in both categories on the same day and will be counted once in the daily active user calculation
- **Key fields**: `sender`, `block_timestamp`, `user_type`, `chain`

### Component D: Fee processing and revenue calculation
- **Purpose**: Convert trading fees to standardized USD amounts and aggregate as protocol revenue
- **Logic**: Raw fee amounts are processed using end-of-day price feeds to convert to USD values and token metadata to correct for decimal places. Fee amounts are aggregated daily by truncating `block_timestamp` to day boundaries. Since Volmex retains 100% of collected trading fees, the total daily fees directly equal daily protocol revenue. Fees from all chains and vault types are summed together for each day
- **Key fields**: `fees` converted to USD, daily `timestamp`

### Component E: Daily active user aggregation
- **Purpose**: Count distinct users across all Volmex activities per day
- **Logic**: User addresses are aggregated daily using HyperLogLog approximate distinct counting to handle large volumes efficiently. Users are counted distinctly across all event types (minting and redemption), chains (Ethereum, Arbitrum, Polygon), and vault types. The aggregation provides breakdowns by individual dimensions (chain, user type, product) as well as overall project-level totals. Daily boundaries are defined by truncating `block_timestamp` to day level
- **Key fields**: `user_dau` (distinct user count), daily `timestamp`, dimensional breakdowns

### Final aggregation
- **Combining components**: Daily revenue totals are divided by daily active user counts for the same date to calculate ARPU. The calculation uses the `calculate_arpu` macro which performs: ARPU = Daily Revenue ÷ Daily Active Users
- **Currency conversion**: All fee amounts are converted to USD using end-of-day price feeds before aggregation, ensuring consistent currency reporting
- **Time aggregation**: Both revenue and user metrics use daily boundaries defined by truncating blockchain timestamps to day level, ensuring aligned time periods for the division
- **Final calculation**: For each day, the total USD revenue generated across all Volmex vaults and chains is divided by the total distinct active users across all activities to produce the daily ARPU value. Missing days are filled with zero values to maintain a continuous time series

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

Volmex

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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