Lenders deposit funds into ZeroLend and receive interest payments from borrowers (supply-side fees).

ZeroLend is a non-custodial lending protocol built on Ethereum and other adjacent blockchains.

ZERO tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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ZeroLend

# ZeroLend Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the daily revenue generated per active user on the ZeroLend lending protocol. The metric divides total daily fees by daily active users to show the monetization efficiency of the platform. This answers the business question: "How much revenue does ZeroLend generate per user per day?" The calculation combines lending interest revenues and flashloan premiums, then divides by the count of unique users who interacted with any ZeroLend lending pool on that day.

## 2. Data sources

- **Lending pool events**: Parsed blockchain events from ZeroLend lending pools across Ethereum, Base, Blast, Manta, zkSync Era, and Linea networks, including `Supply`, `Withdraw`, `Borrow`, `Repay`, and `FlashLoan` events
- **Treasury state data**: Daily treasury accrual balances from ZeroLend protocol state tracking systems
- **Treasury mint events**: Parsed `MintedToTreasury` events from lending pool contracts showing direct treasury minting
- **Reserve factor configuration**: Parsed `ReserveFactorChanged` events from lending pool configurator contracts defining fee splits
- **External price data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimal and symbol information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Daily active user counting
- **Purpose**: Count unique users who interact with ZeroLend lending pools daily
- **Logic**: Extract user addresses from all lending pool interaction events across all supported chains and pool types. Events include supply operations where users deposit tokens, withdraw operations where users remove tokens, borrow operations where users take loans, repay operations where users pay back loans, and flashloan operations where users initiate flash loans. User addresses are extracted from different event parameters depending on the operation type - the `user` field for most operations and the `initiator` field for flashloans. All interactions are aggregated daily and users are deduplicated using HyperLogLog to handle cross-chain and cross-pool activities efficiently.
- **Key fields**: `user_address` from lending events, `block_timestamp` for daily aggregation, `chain` for multi-chain support, `user_type` to classify user behavior patterns

### Component B: Lending interest fee calculation
- **Purpose**: Calculate protocol fees generated from lending interest
- **Logic**: Combine treasury accrual balances with treasury mint events to determine net interest earned by the protocol. Treasury accruals represent the cumulative interest earned and stored in protocol treasury accounts, extracted from daily state snapshots. Treasury mints represent tokens directly minted to the treasury, extracted from `MintedToTreasury` events. The daily interest amount is calculated as the change in treasury accruals plus treasury mints between consecutive days. This total interest is then multiplied by the reserve factor to isolate the protocol's portion, with the remainder going to liquidity providers. Reserve factors are maintained through configuration events and filled forward for missing days.
- **Key fields**: `treasury_accruals` from state data, `amount` from treasury mint events, `reserve_factor` from configuration events, `token_address` for asset identification

### Component C: Flashloan fee collection
- **Purpose**: Calculate fees collected from flashloan operations
- **Logic**: Extract flashloan premium amounts directly from parsed `FlashLoan` events across all supported chains and lending pools. Each flashloan event contains a `premium` field representing the fee paid by the flashloan user. These fees are collected immediately when flashloan transactions execute and represent pure protocol revenue with no supply-side sharing.
- **Key fields**: `premium` amount from flashloan events, `token_address` for the borrowed asset, `block_timestamp` for daily aggregation

### Final aggregation
- **Combining components**: Sum lending interest fees and flashloan fees for each token and chain combination daily. Interest fees and flashloan fees are aggregated separately then combined to create total daily fee amounts per token
- **Currency conversion**: Convert all fee amounts to USD using end-of-day token price feeds and apply token decimal corrections to normalize amounts to standard precision
- **Time aggregation**: Aggregate all data to daily boundaries using timestamp truncation, ensuring consistent daily snapshots across all data sources
- **Final calculation**: Divide the total daily fee amount in USD by the daily active user count using HyperLogLog extraction to produce the average fees per user. Missing days are filled with zero values to maintain complete time series continuity

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

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Average fees per user (AFPU)

Average fees per user (AFPU)

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