Liquidity providers deposit funds into Aerodrome and stake their LP tokens to receive AERO tokens in proportion to their share of the votes (token incentives).

Aerodrome is a non-custodial exchange protocol built on Base. Aerodrome was launched by the Velodrome team in 2023.

AERO tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue), while the pools' unstaked liquidity providers earn the remainder of the trading fees (supply-side fees).

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Aerodrome

# Aerodrome Average trading volume (per trade) Methodology

## 1. Overview

Average trading volume (per trade) is calculated to measure the average USD value of a single trade executed on Aerodrome. This metric is utilized to analyze user demographics, indicating whether the decentralized exchange is primarily used by institutional or retail traders. The calculation is performed by dividing the total daily trading volume by the daily trade count. Core products, including Stable Pools, Volatile Pools, and Slipstream, are covered by this metric.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pool` and `CLPool` contracts, and `PoolCreated` events from `Factory` and `CLPoolFactory` contracts, covering Base and Arc
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trade event extraction and classification

- **Purpose**: To extract individual swap transactions and classify them by product.
- **Logic**: `Swap` events are parsed from `Pool` contracts (for V1 and V2) and `CLPool` contracts (for Slipstream). For V1 and V2, the net change in asset amounts is calculated as the difference between the incoming and outgoing amounts for each asset, using the `amount0In`, `amount0Out`, `amount1In`, and `amount1Out` fields. For Slipstream, the raw asset amounts from the swap events are extracted directly using the `amount0` and `amount1` fields. Trading pairs are identified and classified into Stable Pools or Volatile Pools based on the `Stable Pools` flag extracted from `PoolCreated` events emitted by `Factory` contracts, while swaps from `CLPool` contracts are classified as Slipstream.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address`, `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `amount0`, `amount1`

### Component B: Trade count aggregation

- **Purpose**: To calculate the daily number of unique trades.
- **Logic**: The total number of daily trades is calculated by aggregating the unique transaction hashes of the extracted swap events. This aggregation is performed daily per product.
- **Key fields**: `transaction_hash`, `block_timestamp`

### Component C: Trading volume calculation and USD normalization

- **Purpose**: To calculate the daily trading volume in USD.
- **Logic**: Swapped asset amounts are normalized by their respective decimal precision using asset metadata. The normalized amounts for both assets in a trading pair are multiplied by their end-of-day USD prices. To prevent distortion from price manipulation, the daily trading volume for each swap is determined by taking the lesser USD value of the two swapped assets. These values are then summed daily per product.
- **Key fields**: `token0_amount`, `token1_amount`, `price_usd`

### Component D: Average trading volume calculation

- **Purpose**: To calculate the final average trading volume per trade.
- **Logic**: The total daily trading volume in USD is divided by the daily trade count. This division is performed at a daily granularity to produce the average trading volume per trade.
- **Key fields**: `trading_volume`, `trade_count`

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

AerodromeAERO

Average trading volume (per trade)

Average trading volume (per trade)

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