Liquidity providers deposit funds into Zyberswap and receive trading fees from traders (supply-side fees).

Zyberswap is a non-custodial exchange protocol built on Arbitrum. Zyberswap was founded by anonymous team and launched in 2023.

ZYB tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Zyberswap

# Zyberswap Average fees per user (AFPU) Methodology

## 1. Overview

Average Fees Per User (AFPU) measures the average fee revenue generated per daily active user on Zyberswap, a decentralized exchange operating on Arbitrum. This metric answers the business question "How much fee revenue does each active user generate on average?" and is calculated by dividing total daily fees by the number of daily active users. The calculation combines both trading fees from swaps and flash loan fees, providing a comprehensive view of revenue per user across all Zyberswap activities.

## 2. Data sources

The AFPU calculation relies on several types of blockchain and external data:

- **Blockchain events**: Parsed Arbitrum event logs including `Swap` events from both Zyberswap v2 (`Pair_Swap_event`) and v3 (`AlgebraPool_Swap_event`) versions, `Flash` events from v3 (`AlgebraPool_Flash_event`), and flash loan swap events from v2 (`SwapFlashLoan_TokenSwap_event`)
- **Pool creation events**: `NewSwapPool` events from v2 swap deployer contracts, `PairCreated` events from v2 factory contracts, and `Pool` events from v3 algebra factory contracts that establish trading pairs
- **Fee configuration events**: `Fee` events from v3 algebra pools that set dynamic trading fee rates
- **Transaction data**: Arbitrum transaction records containing originating wallet addresses (`from_address`) for user identification
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimal places and symbols for proper amount calculations

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate USD trading volumes from swap events to determine trading fee revenue
- **Logic**: Extract swap events from both Zyberswap v2 and v3 contracts on Arbitrum. For v2 swaps, calculate net token amounts by subtracting out amounts from in amounts (`amount0In - amount0Out`, `amount1In - amount1Out`). For v3 swaps, use the direct `amount0` and `amount1` values. Join with trading pair metadata to identify token addresses and decimal places. Apply decimal correction by dividing raw amounts by 10 raised to the token's decimal places. Convert corrected amounts to USD using end-of-day price feeds. Apply price manipulation filtering by using the lesser USD value between the two tokens in each trade. Apply fee tiers: v2 uses a hardcoded 0.25% fee, while v3 uses dynamic fees from fee update events. Aggregate volumes daily by trading pair.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` for v2; `amount0`, `amount1` for v3; `user_address` from transaction records; `fee_tier` from fee events or hardcoded values

### Component B: Flash loan volume calculation  
- **Purpose**: Calculate USD flash loan volumes from flash loan events to determine flash loan fee revenue
- **Logic**: Extract flash loan events from both Zyberswap v2 (`TokenSwap` events from flash loan contracts) and v3 (`Flash` events from algebra pools). For both versions, use the absolute values of `amount0` and `amount1` fields. Join with trading pair metadata to identify token addresses and decimal places. Apply decimal correction by dividing by 10 raised to the token's decimal places. Convert to USD using end-of-day price feeds. For v3 flash loans, sum both token USD values; for v2 flash loans, use the lesser USD value to filter manipulation. Apply fee tiers: v2 uses hardcoded 0.05%, v3 uses dynamic fees from fee update events. Aggregate volumes daily by trading pair.
- **Key fields**: `amount0`, `amount1` for flash loan amounts; `sender` for contract user address; `user_address` from transaction records; `fee_tier` from events or hardcoded values

### Component C: Trading pair metadata
- **Purpose**: Provide token addresses, decimal places, and pair names for volume calculations
- **Logic**: Extract trading pair creation events from multiple sources: v2 swap deployer `NewSwapPool` events, v2 factory `PairCreated` events, and v3 algebra factory `Pool` events. Map pool addresses to their constituent token addresses and token IDs. Join with token metadata to get decimal places and symbols for each token. Create human-readable pair names by concatenating token symbols with hyphens.
- **Key fields**: `account_address` for pool/pair contract address; `token0_address`, `token1_address` for constituent tokens; `token0_decimals`, `token1_decimals` for decimal correction; `account_name` for pair identification

### Component D: Fee tier determination
- **Purpose**: Determine applicable fee percentages for trading and flash loan activities
- **Logic**: For v2 activities, use hardcoded fee tiers (0.25% for trading, 0.05% for flash loans). For v3 activities, extract dynamic fee rates from `Fee` events in algebra pools, converting from basis points to decimal percentages by dividing by 1,000,000. Match fee events to trading activities by pool address and block number. For protocol fees in v3, multiply the base fee by community fee percentages from `CommunityFee` events.
- **Key fields**: `fee` from v3 fee events; hardcoded rates for v2; `communityFee0New`, `communityFee1New` for protocol fee calculations

### Component E: User identification
- **Purpose**: Count distinct daily active users across all Zyberswap activities
- **Logic**: Extract user addresses from both trading and flash loan events. The `user_address` field comes from the `from_address` of the underlying Arbitrum transaction, representing the wallet that initiated the activity. Combine users from both activity types using union distinct to avoid double-counting users who both trade and use flash loans on the same day. Classify all users as 'Trader' type regardless of specific activity. Aggregate to daily distinct counts using HyperLogLog for efficient computation across dimensional breakdowns.
- **Key fields**: `user_address` from transaction `from_address`; `block_timestamp` for daily aggregation; `user_type` classified as 'Trader'

### Final aggregation
- **Combining components**: Total daily fees are calculated by summing trading fees (trading volume × trading fee tier) and flash loan fees (flash loan volume × flash loan fee tier) across all trading pairs and versions. Daily active users are counted as distinct wallet addresses that participated in either trading or flash loan activities.
- **Currency conversion**: All volume calculations convert token amounts to USD using end-of-day price feeds matched by timestamp, token address, and chain. Missing prices result in zero volume for affected trades.
- **Time aggregation**: All metrics use daily boundaries with timestamps truncated to day level. Data is filtered to start from January 23, 2023, when Zyberswap began operations.
- **Final calculation**: AFPU is computed as the ratio of total daily fees to daily active users. Days with zero active users result in zero AFPU. Missing days are filled with zero values to maintain continuous time series data.

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

ZyberswapZYB

Average fees per user (AFPU)

Average fees per user (AFPU)

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