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XSwap

XSwap | Data Breakdowns

# XSwap Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Xswap decentralized exchange. This metric is calculated by dividing daily protocol revenue by the number of daily active users. For Xswap, this metric consistently equals zero because the protocol distributes 100% of trading fees to liquidity providers, retaining no revenue for the protocol itself. The calculation serves to document this fee distribution model and provides a framework for comparison with other DEX protocols.

## 2. Data sources

**Blockchain events:**
- XDC blockchain transaction records containing user addresses and transaction metadata
- Parsed Xswap v2 `Pair_Swap_event` logs from pair contracts on XDC
- Parsed Xswap v3 `Pool_Swap_event` logs from pool contracts on XDC  
- Parsed Xswap v3 `Pool_Flash_event` logs from pool contracts on XDC
- Parsed Xswap v2 `Factory_PairCreated_event` logs establishing trading pairs on XDC
- Parsed Xswap v3 `Factory_PoolCreated_event` logs establishing pools on XDC

**External data:**
- End-of-day token price feeds for USD conversion
- Token metadata including symbols and decimal precision
- Uniswap denylisted trading pairs reference data for filtering low-liquidity tokens

## 3. Step-by-step calculation

### Component A: Trading pair establishment
- **Purpose**: Identifies all valid Xswap trading pairs with their fee structures and token metadata
- **Logic**: Factory creation events from both v2 and v3 contracts establish the universe of trading pairs. Each pair contains two tokens (token0 and token1) and an associated fee tier. The fee tier values are normalized by dividing by one million. Token metadata is joined to provide decimal precision for amount corrections. Trading pairs from the Uniswap denylist are excluded due to limited price feed support for low-liquidity tokens.
- **Key fields**: `account_address` (pair/pool address), `token0_address`, `token1_address`, `fee_tier`, `token0_decimals`, `token1_decimals`

### Component B: Trading volume calculation  
- **Purpose**: Calculates daily USD trading volume from swap activities
- **Logic**: Swap events from both v2 pairs and v3 pools capture trading activity. V2 events provide `amount0In`, `amount0Out`, `amount1In`, `amount1Out` fields which are netted to get token amounts. V3 events directly provide `amount0` and `amount1`. Token amounts are corrected for decimals by dividing by 10 raised to the token's decimal precision. USD conversion uses end-of-day price feeds, taking the lesser of the two token USD values to filter out potential price manipulation. Daily volumes are aggregated by truncating timestamps to day boundaries.
- **Key fields**: `token0_amount`, `token1_amount`, `trading_volume` (in USD)

### Component C: Flash loan volume calculation
- **Purpose**: Calculates daily USD flash loan volume from flash loan activities  
- **Logic**: Flash events from v3 pool contracts capture flash loan activity. Token amounts for both token0 and token1 are corrected for decimals and converted to USD using end-of-day price feeds. Unlike trading volume, both token amounts are summed together rather than taking the lesser value. Daily volumes are aggregated by truncating timestamps to day boundaries.
- **Key fields**: `token0_amount`, `token1_amount`, `flash_loan_volume` (in USD)

### Component D: Fee calculation
- **Purpose**: Calculates total fees generated from trading and flash loan activities
- **Logic**: Fees are calculated by multiplying trading volume by the respective pair's fee tier, plus flash loan volume by the respective pool's fee tier. Fee tiers represent the percentage fee charged (e.g., 0.003 for 0.3%). Both trading fees and flash loan fees are combined into total daily fees.
- **Key fields**: `fees` (trading fees + flash loan fees)

### Component E: User activity tracking
- **Purpose**: Identifies and counts daily active users across all Xswap activities
- **Logic**: User addresses are extracted from transaction records for both trading and flash loan activities. Users are classified as 'Trader' type regardless of activity. Daily active users are counted as distinct addresses within each day using timestamp truncation to day boundaries. The same user performing both trading and flash loan activities on the same day is counted only once through deduplication.
- **Key fields**: `user_address`, `user_dau` (daily active user count)

### Component F: Revenue allocation
- **Purpose**: Determines protocol revenue based on Xswap's fee distribution model
- **Logic**: According to Xswap's tokenomics, all trading fees are distributed to liquidity providers with zero retention by the protocol. Therefore, protocol revenue is set to zero regardless of the total fees generated.
- **Key fields**: `revenue` (always 0)

### Final aggregation
- **Combining components**: Daily active users and daily revenue are aggregated to the same time grain (daily) and joined by timestamp
- **Currency conversion**: All monetary values are in USD using end-of-day price feeds
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation
- **Final calculation**: ARPU equals daily revenue divided by daily active users. Since Xswap protocol revenue is always zero, ARPU consistently equals zero regardless of user activity levels

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

XSwapXSP

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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