# Stable Pools Trading volume Methodology

## 1. Overview

Trading volume is defined as the total USD value of trades executed within Aerodrome's Stable Pools. This metric is utilized to evaluate the liquidity and trading activity of pegged or highly correlated assets, such as stablecoins, which are optimized for low-slippage execution. Because trading fees are generated from these transactions, trading volume is treated as a key indicator of the protocol's capacity to generate fees and revenue for liquidity providers and governance participants.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Stable Pools identification

- **Purpose**: To identify the smart contract addresses of Stable Pools and their associated assets.
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed. The `Stable Pools` flag within these events is used to filter for Stable Pools, where a value of true indicates a Stable Pools swap pool and false indicates a Volatile Pools pool. The contract addresses for the pool, asset 0, and asset 1 are extracted, and asset metadata is joined to retrieve decimal precision for each asset.
- **Key fields**: `pool`, `token0`, `token1`, `Stable Pools`

### Component B: Stable Pools trade extraction

- **Purpose**: To capture swap transactions executed within the identified Stable Pools.
- **Logic**: `Swap` events from `Pool` contracts are parsed and filtered to include only those matching the identified Stable Pools Pool addresses. For each swap, the net change in asset balances is calculated by subtracting the outgoing amount from the incoming amount for both asset 0 and asset 1.
- **Key fields**: `sender`, `amount0In`, `amount0Out`, `amount1In`, `amount1Out`

### Component C: USD valuation and normalization

- **Purpose**: To normalize asset amounts and convert the trading volume to USD.
- **Logic**: Raw asset amounts from the swap events are normalized by their respective decimal precision. These normalized amounts are then multiplied by end-of-day asset prices to determine the USD value of each trade leg. To prevent valuation distortions from unpriced or highly Volatile Pools assets, the total trading volume for each swap is calculated as the lesser of the USD values of the two trade legs, unless one of the legs is classified as a tokenized stock, in which case that leg's USD value is used directly.
- **Key fields**: `token0_amount`, `token1_amount`, `price_usd`

### Component D: Aggregation

- **Purpose**: To aggregate trading volume to daily intervals.
- **Logic**: The calculated USD trading volumes are summed and grouped by day, pool address, and asset pair. Daily boundaries are defined using UTC timestamps, and any days with missing trading activity are filled with zero values to ensure a continuous time series.
- **Key fields**: `timestamp`, `pool_address`, `trading_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).

Stable Pools

Trading volume

Trading volume

Chain breakdown