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

ApeSwap is a non-custodial exchange protocol built originally on BNB Chain. ApeSwap was founded by an anonymous team and launched in 2021.

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

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ApeSwap

# ApeSwap Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures the efficiency of capital utilization in ApeSwap's automated market maker (AMM) pools by calculating the ratio of daily trading volume to total value locked (TVL). This metric indicates how frequently the locked liquidity is being traded, with higher values suggesting more active and efficient capital deployment. The calculation divides the daily trading volume by the daily TVL across all ApeSwap pools on Ethereum, BSC, Arbitrum, and Polygon chains.

## 2. Data sources

The methodology relies on several blockchain and external data sources:

- **AMM factory events**: Parsed `PairCreated` events from ApeSwap factory contracts on Ethereum, BSC, Arbitrum, and Polygon to identify valid trading pairs
- **Pool reserve events**: Parsed `Sync` events from ApeSwap pair contracts showing reserve balance updates for both tokens in each pool
- **Trading events**: Parsed `Swap` events from ApeSwap pair contracts capturing all token exchanges with input/output amounts
- **Transaction data**: Blockchain transaction records from all four chains to identify user addresses and transaction context
- **Token metadata**: Token symbol and decimal information for proper amount calculations
- **Price feeds**: End-of-day USD price feeds for all tokens traded on ApeSwap pools
- **Denylist configuration**: Hardcoded list of problematic trading pair addresses excluded due to limited price feed support

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Establish the universe of valid ApeSwap trading pairs across all supported chains
- **Logic**: Collect all `PairCreated` events from ApeSwap factory contracts on Ethereum, BSC, Arbitrum, and Polygon. Extract pair contract addresses along with the two underlying token addresses. Join with token metadata to get symbols and decimal places for proper amount calculation. Apply denylist filtering to remove pairs with tokens that have limited price feed support or other data quality issues. Each pair has a standard 0.2% fee tier
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name` (token symbol concatenation), `fee_tier`

### Component B: Reserve tracking for TVL calculation
- **Purpose**: Track daily changes in pool reserves to calculate net deposits and TVL
- **Logic**: Process `Sync` events from all ApeSwap pair contracts, which emit whenever pool reserves change due to trades, deposits, or withdrawals. For each event, capture the new reserve amounts for both tokens (`reserve0_amount`, `reserve1_amount`). Correct amounts using token decimal information. For each day and pool, take the last reserve values and calculate the change from the previous day. If no activity occurs on a given day, use the current reserve balance as the flow amount. Convert daily flows to USD using end-of-day price feeds and accumulate these as net deposits, which represents TVL
- **Key fields**: `reserve0_amount`, `reserve1_amount`, corrected for decimals and converted to USD

### Component C: Trading volume calculation
- **Purpose**: Calculate daily USD trading volume across all ApeSwap pools
- **Logic**: Process all `Swap` events from ApeSwap pair contracts, extracting input and output amounts for both tokens (`amount0In`, `amount0Out`, `amount1In`, `amount1Out`). Calculate net token amount changes by taking the difference between inputs and outputs, then take absolute values to get volumes. Correct amounts using token decimal information. Aggregate by day, pool, and transaction to get daily volumes per pool. Convert token amounts to USD using end-of-day price feeds. To filter out price manipulation, take the lesser of the two token values (token0 USD amount vs token1 USD amount) as the final trade volume for each transaction. Sum across all pools and chains to get total daily trading volume
- **Key fields**: `token0_amount`, `token1_amount` (volume amounts), converted to USD using minimum value methodology

### Component D: TVL accumulation
- **Purpose**: Convert daily net deposit flows into cumulative TVL values
- **Logic**: Take the daily net deposits calculated from reserve changes and accumulate them over time to represent the total value locked in ApeSwap pools. This cumulative sum approach treats TVL as the running total of all historical net inflows minus outflows
- **Key fields**: `tvl` (cumulative net deposits in USD)

### Final aggregation
- **Combining components**: The liquidity turnover calculation takes the daily trading volume and divides it by the daily TVL for the same date. Both metrics are aggregated across all chains (Ethereum, BSC, Arbitrum, Polygon) and all pools before performing the division
- **Currency conversion**: All amounts are converted to USD using end-of-day token price feeds, with trading volume using the minimum value method to prevent price manipulation
- **Time aggregation**: Data is aggregated on daily boundaries using timestamp truncation to day level
- **Final calculation**: Liquidity turnover equals daily trading volume divided by daily TVL, with zero-filling applied for days with missing data to ensure complete time series coverage

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

Trading volume divided by total liquidity.

ApeSwapABOND

Liquidity turnover

Liquidity turnover

Competitive landscape