# Slipstream Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed on Aerodrome's Slipstream concentrated liquidity product. This metric is a key indicator of the protocol's liquidity utilization and its capacity to generate trading fees for liquidity providers and voters. Because transaction fees are directly tied to swap activity, trading volume serves as a primary driver of the protocol's overall economic activity.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Slipstream pool and trading pair identification

- **Purpose**: Identify active Slipstream pools and their associated assets.
- **Logic**: `PoolCreated` events from `CLPoolFactory` contracts are parsed to extract pool addresses and the contract addresses of the two assets in each pool. These pools are classified under the Slipstream product. Asset decimals are retrieved from asset metadata to enable proper normalization.
- **Key fields**: `pool` (pool address), `token0` (first asset address), `token1` (second asset address)

### Component B: Slipstream trade event extraction

- **Purpose**: Capture individual swap transactions and asset flow amounts.
- **Logic**: `Swap` events from `CLPool` contracts are parsed to extract the raw swap amounts for both assets. These events are joined with transaction data to associate each trade with a transaction hash and timestamp. The raw asset amounts are normalized by their respective decimal precisions.
- **Key fields**: `amount0` (first asset swap amount), `amount1` (second asset swap amount), `sender` (contract user address), `transaction_hash` (transaction identifier), `block_timestamp` (timing)

### Component C: Slipstream USD valuation and volume calculation

- **Purpose**: Convert asset swap amounts to USD and determine the final trading volume.
- **Logic**: Normalized asset amounts are multiplied by their respective end-of-day USD prices obtained from price feeds. To prevent double-counting and account for potential imbalances, the trading volume for each swap is calculated as the minimum USD value between the two swapped assets. Transactions with a calculated volume of zero or less are excluded.
- **Key fields**: `amount_0` (normalized first asset amount), `amount_1` (normalized second asset amount), `price_usd` (asset price in USD)

### Component D: Aggregation and finalization

- **Purpose**: Aggregate trading volume to daily intervals.
- **Logic**: The calculated USD trading volumes are aggregated by day, chain, and product. The final dataset is formatted to ensure consistent daily reporting across the supported chain.
- **Key fields**: `timestamp` (daily interval), `trading_volume` (aggregated USD volume)

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)

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).

Slipstream

Trading volume

Trading volume

Chain breakdown