Liquidity providers deposit funds into Balancer and receive trading fees from traders (supply-side fees). In addition, Balancer provides liquidity providers with additional yield using boosted pools.

Balancer is a non-custodial exchange protocol built on Ethereum. Balancer was founded by Fernando Martinelli and launched in 2018.

BAL tokenholders own and govern the protocol. They currently take a cut of the total trading and yield fees (revenue). Balancer's investors include DeFiance Capital, Three Arrows Capital, Alameda Research, etc.

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Exchanges (DEX)

Balancer

# Balancer Trading volume Methodology

## 1. Overview

Balancer trading volume measures the total USD value of token swaps executed through Balancer V2 automated market maker (AMM) pools across multiple blockchain networks. This metric captures the daily trading activity on Balancer's decentralized exchange by converting all token swap amounts to USD values and aggregating them by day. The calculation uses an anti-manipulation approach that takes the lesser USD value between the two tokens in each swap to prevent inflated volume from price anomalies or manipulation attempts.

## 2. Data sources

- **Balancer V2 Vault Swap events**: Parsed `Swap` events from Balancer V2 Vault contracts on Ethereum, Arbitrum, Avalanche, Base, Gnosis, Optimism, and Polygon containing swap details including token addresses, amounts, and pool identifiers
- **Transaction records**: Blockchain transaction data from each supported chain to identify the user address initiating each swap
- **Pool fee tier events**: Parsed `SwapFeePercentageChanged` events from Balancer pool contracts tracking individual pool trading fee changes over time
- **Protocol fee tier events**: Parsed `SwapFeePercentageChanged` events from Balancer ProtocolFeesCollector contracts tracking protocol-wide fee adjustments
- **Token metadata**: Token contract information including decimal places and symbols for proper amount conversion
- **End-of-day price feeds**: Daily USD price data for all tokens involved in swaps to enable volume calculation in USD terms

## 3. Step-by-step calculation

### Component A: Raw trade extraction
- **Purpose**: Extract individual swap transactions from Balancer V2 Vault contracts
- **Logic**: Collect all `Swap` events from Balancer V2 Vault contracts across seven supported chains. Filter out pool liquidity operations by excluding swaps where either `tokenIn` or `tokenOut` matches the pool address extracted from the `poolId` field. Join with transaction data to identify the user address initiating each swap. Create unique identifiers for each trade using block number and log index for precise temporal ordering.
- **Key fields**: Block timestamp, transaction hash, pool ID, `tokenIn` address, `tokenOut` address, `amountIn`, `amountOut`, user address from transaction data

### Component B: Token amount processing
- **Purpose**: Convert raw token amounts to standardized USD values
- **Logic**: Aggregate raw token amounts at the daily level per trade to optimize performance. Unpivot the data to process both input and output tokens in a single operation. Join with token metadata to obtain decimal places for proper amount conversion. Apply decimal adjustment by dividing raw amounts by 10 raised to the token's decimal places. Join with end-of-day price feeds to convert adjusted token amounts to USD values.
- **Key fields**: Adjusted token amounts after decimal conversion, USD amounts calculated using price feeds, token symbols for identification

### Component C: Volume calculation with anti-manipulation logic
- **Purpose**: Calculate trading volume while preventing price manipulation from inflating figures
- **Logic**: Pivot the data back to trade level to compare USD values of both tokens in each swap. Apply the "least USD amount" methodology by taking the smaller USD value between the input and output tokens for each trade. This approach prevents trades involving tokens with manipulated or erroneous prices from artificially inflating volume figures. Set volume to zero for trades where price data is unavailable for either token.
- **Key fields**: `trading_volume` calculated as the minimum USD value between token pairs, account name combining both token symbols

### Component D: Fee tier integration
- **Purpose**: Associate each trade with applicable trading fees at the time of execution
- **Logic**: Join trade data with pool-level fee tier changes using temporal logic based on unique trade identifiers. For each trade, find the most recent fee tier change that occurred before the trade by matching on pool address and chain, then filtering where the trade ID is greater than or equal to the fee change ID and less than the next fee change ID. Similarly join with protocol-level fee changes to capture protocol fee tiers. Calculate total fees by multiplying trading volume by the applicable fee tier.
- **Key fields**: `fee_tier` from pool-specific changes, `protocol_fee_tier` from protocol-wide changes, calculated `fees` amount

### Final aggregation
- **Combining components**: All trade-level volume calculations are processed through the intermediate model, then filtered to exclude Optimism chain data as those volumes are attributed to Beethoven X protocol instead of Balancer
- **Currency conversion**: USD conversion occurs at the individual token level using end-of-day price feeds, with conversion happening before volume aggregation
- **Time aggregation**: Daily boundaries are established using timestamp truncation to day level, with all trades grouped by this daily timestamp
- **Final calculation**: The final trading volume is the sum of all individual trade volumes (calculated using the least USD amount method) aggregated by day, chain, and other relevant dimensions, with the finalize metric macro applied to ensure consistent formatting and zero-filling for periods with no trading activity

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

Total value of spot trades executed on the exchange.

BalancerBAL

Trading volume

Trading volume

Competitive landscape

Chain breakdown