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

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

BSW tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Biswap’s investors include Binance Labs.

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Biswap

# Biswap Fees Methodology

## 1. Overview

Biswap fees represent the total protocol fees earned from trading activity and flash loans on the Biswap decentralized exchange. The metric combines fees from both regular trading volume and flash loan volume, calculated by multiplying each volume by its respective fee tier. This provides a comprehensive view of protocol revenue generation across Biswap's v1 and v3 AMM pools on BSC.

## 2. Data sources

The calculation relies on several raw blockchain data sources:

- **BSC trading events**: Parsed `Pair_Swap_event` logs from Biswap v1 contracts and `Pool_Swap_event` logs from Biswap v3 contracts containing swap amounts and pool addresses
- **BSC flash loan events**: Parsed `Pool_Flash_event` logs from Biswap v3 contracts containing flash loan amounts
- **BSC factory events**: `Factory_PairCreated_event` logs from v1 factory and `Factory_NewPool_event` logs from v3 factory establishing pool creation and fee tiers
- **BSC function traces**: `swapY2X_function` and `swapX2Y_function` trace calls for determining v3 trade directionality
- **BSC transaction records**: Transaction data for identifying user addresses
- **Token metadata**: Token decimals and symbols for proper amount conversion
- **End-of-day price feeds**: USD price data for token valuation and volume conversion

## 3. Step-by-step calculation

### Component A: Trading pair setup
- **Purpose**: Establish fee tiers and token metadata for each trading pool
- **Logic**: Extract pool creation events from both v1 and v3 factories. For v1 pools, apply a default fee tier of 0.2% with special stable pools using 0.1% (identified by hardcoded addresses). For v3 pools, use the dynamic fee tier specified in the `NewPool_event`. Join with token metadata to get decimals and symbols for proper amount conversion. Create trading pair mappings that include pool addresses, token addresses, fee tiers, and token decimals.
- **Key fields**: `account_address` (pool address), `fee_tier` (as decimal percentage), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`

### Component B: Trading volume calculation
- **Purpose**: Calculate daily USD trading volume for fee calculation
- **Logic**: Process swap events from both v1 and v2 protocols. For v1, calculate token amount changes using `amount0In - amount0Out` and `amount1In - amount1Out`. For v3, determine trade direction using swap function traces (`swapY2X_function` yields direction -1,1 while `swapX2Y_function` yields 1,-1) and apply to amounts. Convert raw token amounts to proper decimals by dividing by 10^decimals. Aggregate daily by taking absolute values and summing. Convert both token amounts to USD using end-of-day price feeds. Use the minimum USD value between the two tokens to prevent price manipulation and provide conservative volume estimates.
- **Key fields**: `trading_volume` (USD), `fee_tier`, `timestamp`, business dimension fields

### Component C: Flash loan volume calculation  
- **Purpose**: Calculate daily USD flash loan volume for additional fee revenue
- **Logic**: Process `Pool_Flash_event` logs from v3 contracts only. Extract flash loan amounts for both tokens (`amountX` and `amountY`). Convert raw amounts using token decimals. Aggregate daily by summing amounts. Convert both token amounts to USD using end-of-day price feeds. Sum both USD values (unlike trading volume, no minimum function is used since flash loans represent borrowed amounts rather than traded amounts).
- **Key fields**: `flash_loan_volume` (USD), `fee_tier`, `timestamp`, business dimension fields

### Final aggregation
- **Combining components**: Union trading volume fees and flash loan volume fees into a single dataset. Trading fees are calculated as `trading_volume * fee_tier` and flash loan fees as `flash_loan_volume * fee_tier`.
- **Currency conversion**: All volumes are converted to USD using end-of-day price feeds before fee calculation
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation
- **Final calculation**: Sum all fees by timestamp, chain, and business dimensions to produce total daily protocol fees. Apply the `finalize_metric_fees` macro for standardization and fill missing days with zeros.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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