# Volatile Pools Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed on Aerodrome's Volatile Pools. This metric is used to assess the protocol's ability to generate trading fees and revenue for liquidity providers and voters. A non-Stable Pools automated market maker (AMM) model is utilized by Volatile Pools, which is designed for assets with high price correlation variance.

## 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: Volatile Pools identification and classification

- **Purpose**: Identify active pools and classify them as Volatile Pools
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to extract pool addresses, asset addresses, and pool type flags. Pools are classified as Volatile Pools if the Stable Pools pool flag is set to false, distinguishing them from Stable Pools and Slipstream pools. Decimals for each asset are mapped using asset metadata.
- **Key fields**: `pool` (pool address), `token0` (first asset address), `token1` (second asset address), and `Stable Pools` (pool type flag)

### Component B: Volatile Pools trade event extraction

- **Purpose**: Capture swap transactions and calculate raw asset trade amounts
- **Logic**: `Swap` events from `Pool` contracts are parsed for pools identified as Volatile Pools. The net change for each asset in the pool is calculated by subtracting the outgoing amount from the incoming amount for both assets. Transactions are filtered to include only those occurring on or after June 1, 2022.
- **Key fields**: `block_timestamp` (transaction timing), `transaction_hash` (transaction identifier), `amount0In` (incoming amount for asset 0), `amount0Out` (outgoing amount for asset 0), `amount1In` (incoming amount for asset 1), and `amount1Out` (outgoing amount for asset 1)

### Component C: Volatile Pools volume normalization and USD conversion

- **Purpose**: Normalize asset amounts and convert trading volume to USD
- **Logic**: Raw asset amounts are normalized by decimal precision. Normalized amounts are multiplied by end-of-day price feeds to determine the USD value of each trade leg. To prevent valuation distortions from unpriced or newly launched assets, the final trading volume is calculated as the lesser USD value of the two trade legs, except when one leg is classified as a tokenized stock, in which case the volume of the tokenized stock leg is used.
- **Key fields**: `amount_0` (normalized asset 0 amount), `amount_1` (normalized asset 1 amount), and `price_usd` (asset price in USD)

### Component D: Volatile Pools aggregation and finalization

- **Purpose**: Aggregate trading volume and apply platform-level filters
- **Logic**: Trading volumes are aggregated by day, chain, and pool. Missing days are zero-filled to ensure continuous data series, and chain availability filters are applied to align with archival and freshness configurations.
- **Key fields**: `timestamp` (day-truncated timestamp), `chain_id` (chain identifier), and `trading_volume` (final 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).

Volatile Pools

Trading volume

Trading volume

Chain breakdown