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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Balancer

# Balancer Average trading volume (per user) Methodology

## 1. Overview

This metric calculates the average USD trading volume per daily active user on the Balancer protocol. It measures trading efficiency by dividing the total daily trading volume by the number of unique users who either executed trades or took flashloans on that day. The metric helps assess user engagement intensity and the average economic activity per protocol participant.

## 2. Data sources

The calculation relies on several key blockchain data sources:

- **Balancer V2 Vault events**: Parsed `Swap` events from Balancer V2 Vault contracts across Ethereum, Arbitrum, Avalanche, Base, Gnosis, Optimism, and Polygon networks containing swap details, token addresses, and amounts
- **Balancer V2 FlashLoan events**: Parsed `FlashLoan` events from the same Vault contracts identifying users taking flashloans
- **Blockchain transaction records**: Transaction data from all supported chains to identify the actual user addresses initiating trades and flashloans
- **Token metadata**: Token contract information including symbol names and decimal precision for amount standardization
- **End-of-day price feeds**: Daily closing prices in USD for all traded tokens to enable volume calculation in a common currency
- **Fee tier events**: Balancer pool and protocol fee change events (used for context but not directly in volume calculation)

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate total daily USD trading volume across all Balancer pools
- **Logic**: Extract all `Swap` events from Balancer V2 Vault contracts across supported chains. Filter out liquidity provision and withdrawal activities by excluding swaps where either `tokenIn` or `tokenOut` equals the pool address (derived from the first 42 characters of `poolId`). For each valid swap, convert raw token amounts to decimal-adjusted amounts using token metadata, then convert to USD using end-of-day price feeds. Calculate trade volume as the lesser of the two token USD amounts to mitigate price manipulation effects. Aggregate all trade volumes daily, excluding Optimism chain data which is attributed to Beethoven X protocol
- **Key fields**: `block_timestamp` for daily aggregation, `tokenIn` and `tokenOut` addresses, `amountIn` and `amountOut` raw token quantities, `poolId` for pool identification and filtering

### Component B: Daily active user calculation  
- **Purpose**: Count unique users who either traded or took flashloans each day
- **Logic**: Combine users from two activity types: traders who executed swaps (identified from `Swap` events and labeled as 'Trader') and users who took flashloans (identified from `FlashLoan` events and labeled as 'Flashloan Trader'). Use transaction data to map events to actual user addresses rather than contract addresses. Apply HyperLogLog probabilistic counting for efficient distinct user aggregation across large datasets. Exclude Optimism users consistent with volume calculation
- **Key fields**: `user_address` from transaction records, `block_timestamp` for daily boundaries, event types for user classification

### Final aggregation
- **Combining components**: Join daily trading volume totals with daily active user counts on the same timestamp, using the project-level aggregation that combines all chains and user types
- **Currency conversion**: All token amounts converted to USD using end-of-day price feeds matched by token address, chain, and date  
- **Time aggregation**: Both components aggregated to daily granularity using timestamp truncation to day boundaries
- **Final calculation**: Divide total daily trading volume by total daily active users using safe division to handle edge cases where DAU might be zero, resulting in the average trading volume per active user in USD

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

Average trading volume (per user)

Trading volume divided by daily active users.

BalancerBAL

Average trading volume (per user)

Average trading volume (per user)

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