Liquidity providers deposit funds into Wombat Exchange and receive WOM token rewards.

Wombat Exchange is a non-custodial exchange protocol built on BNB Chain. Wombat Exchange was founded by Alex Lee and launched in April 2022.

WOM tokenholders own and govern the protocol. They currently receive all trading fees paid by traders (revenue). Wombat Exchange’s investors include Binance Labs, Animoca Brands and Hailstone Ventures.

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Wombat Exchange

# Wombat Exchange Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the daily revenue generated per active user on Wombat Exchange. This metric is calculated by dividing daily protocol revenue by daily active users (DAU), providing insight into the monetization efficiency and user value of the decentralized exchange platform. The calculation combines trading fee revenue from swap activities across multiple blockchain networks with user engagement metrics.

## 2. Data sources

The ARPU calculation relies on several raw blockchain data sources:

- **Swap events**: Parsed `Swap` and `SwapV2` events from Wombat Exchange pool contracts across Ethereum, BSC, Arbitrum, Avalanche, Optimism, and Base networks
- **Transaction records**: Transaction data from supported chains containing user wallet addresses and transaction metadata
- **Fee configuration events**: `SetHaircutRate` events that update fee tiers for individual pools and `SetFee` events that modify revenue split ratios
- **End-of-day price feeds**: Token price data in USD for converting trading volumes to standardized currency values
- **Token metadata**: Token information including decimal places and symbols for proper amount normalization

## 3. Step-by-step calculation

### Component A: Trading volume extraction
- **Purpose**: Identifies and normalizes trading activity across all Wombat Exchange pools
- **Logic**: Extracts swap events from multiple pool contracts across six blockchain networks, including main pools, side pools, cross-chain pools, and specialized pools for different token types. Each swap event contains token addresses, amounts, and pool information. Token amounts are normalized by dividing by the appropriate decimal factor based on token metadata. The system handles special cases for unsupported wrapped tokens by mapping them to equivalent WOM token addresses.
- **Key fields**: `fromToken` and `toToken` addresses, `fromAmount` and `toAmount` values, pool contract `address`, transaction `block_timestamp`

### Component B: User identification  
- **Purpose**: Identifies unique users participating in trading activities
- **Logic**: Joins swap events with transaction records to extract the initiating wallet address from the `from_address` field. This represents the actual user wallet that initiated the swap transaction, providing accurate user attribution for each trade.
- **Key fields**: `from_address` as the primary user identifier, `transaction_hash` for linking events to transactions

### Component C: USD conversion and volume calculation
- **Purpose**: Converts token amounts to standardized USD values for consistent revenue calculation
- **Logic**: Joins normalized token amounts with end-of-day price feeds to convert both sides of each trade to USD values. To prevent price manipulation attacks, the system takes the minimum USD value between the two tokens in each swap as the official trading volume. This conservative approach ensures revenue calculations are based on reliable price data.
- **Key fields**: Normalized `token0_amount` and `token1_amount`, corresponding `price_usd` values from price feeds

### Component D: Fee tier application
- **Purpose**: Applies dynamic fee structures to calculate total fees generated from trading activity
- **Logic**: Each Wombat Exchange pool has a specific fee tier that determines the percentage of trading volume collected as fees. Initial fee tiers are hardcoded per pool (ranging from 0.00002 to 0.0025), but can be updated through `SetHaircutRate` events. The system maintains a time-series of fee tiers per pool, filling forward any gaps to ensure continuous coverage. Fees are calculated by multiplying the USD trading volume by the applicable fee tier.
- **Key fields**: Pool-specific `fee_tier` values, `trading_volume` in USD

### Component E: Revenue calculation
- **Purpose**: Determines the portion of fees that constitute protocol revenue
- **Logic**: Applies revenue percentage splits to determine what portion of collected fees goes to the Wombat Exchange protocol versus liquidity providers. Currently, all pools are configured with 100% revenue retention for the protocol, but this can be updated through `SetFee` events that modify the `retentionRatio` parameter. The system maintains time-series tracking of these splits and applies them to the calculated fees.
- **Key fields**: `revenue_percentage` split ratios, calculated `fees` amounts

### Component F: Daily active user counting
- **Purpose**: Counts unique users active each day across all trading activities
- **Logic**: Aggregates unique user addresses by day using HyperLogLog data structures for efficient computation across large datasets. Users are counted distinctly across different dimensions including chain, user type, and product to enable flexible analysis. The system ensures each wallet address is counted only once per day regardless of the number of transactions.
- **Key fields**: Daily distinct `user_address` counts using HyperLogLog aggregation

### Final aggregation
- **Combining components**: Daily revenue totals are calculated by summing all fee revenue across pools and chains for each day. Daily active users are calculated using HyperLogLog merge operations to get distinct counts across all dimensions.
- **Currency conversion**: All revenue is already converted to USD during the volume calculation step using end-of-day price feeds
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with all calculations performed at the day level
- **Final calculation**: ARPU is computed by dividing the total daily revenue in USD by the total daily active user count. Missing days are filled with zero values to maintain continuous time series data, indicating days with no trading activity or revenue generation.

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

Wombat ExchangeWOM

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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