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 Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of trading fees that flow to liquidity providers on the Biswap decentralized exchange. This metric calculates 75% of the total fees generated from both regular trading activity and flash loans across Biswap v1 and v3 protocols on BSC. The remaining 25% represents protocol fees. This metric answers how much value accrues to liquidity providers who supply capital to Biswap pools.

## 2. Data sources

- **Blockchain events**: Parsed BSC `Swap` events from Biswap v1 (`Pair_Swap_event`) and v3 (`Pool_Swap_event`) contracts capturing all trading activity
- **Function call traces**: BSC transaction traces for Biswap v3 swap functions (`swapY2X_function` and `swapX2Y_function`) to determine swap directions
- **Flash loan events**: Parsed BSC `Flash` events (`Pool_Flash_event`) from Biswap v3 pools
- **Factory events**: Pool creation events (`NewPool_event` for v3, `PairCreated_event` for v1) containing trading pair metadata and fee configurations
- **Transaction data**: BSC transaction records linking events to user addresses
- **Token metadata**: Token information including decimal places and symbols for proper amount calculations
- **External data**: End-of-day token price feeds for USD conversion

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate daily USD trading volume for fee calculation
- **Logic**: Extract swap events from Biswap v1 and v3 contracts. For v1, calculate token amounts as the difference between input and output amounts (`amount0In - amount0Out`, `amount1In - amount1Out`). For v3, extract amounts from event logs and apply directional multipliers based on swap function calls - `swapY2X_function` uses (-1, 1) multipliers while `swapX2Y_function` uses (1, -1) multipliers. Join with trading pair metadata to get token addresses, fee tiers, and decimal places. Correct token amounts by dividing by `10^decimals`. Convert to USD using end-of-day price feeds. For each trade, use the lesser USD value between the two tokens to filter out potential price manipulation. Aggregate to daily totals by trading pair.
- **Key fields**: `token0_amount`, `token1_amount`, `fee_tier`, `trading_volume`, `account_address`

### Component B: Flash loan volume calculation  
- **Purpose**: Calculate daily USD flash loan volume for additional fee calculation
- **Logic**: Extract `Flash` events from Biswap v3 pools containing borrowed amounts for both tokens (`amountX`, `amountY`). Join with trading pair metadata to get token decimal places and fee tiers. Correct token amounts by dividing by `10^decimals`. Convert both token amounts to USD using end-of-day price feeds and sum them to get total flash loan volume per transaction. Aggregate to daily totals by trading pair.
- **Key fields**: `token0_amount`, `token1_amount`, `flash_loan_volume`, `fee_tier`

### Component C: Trading pair configuration
- **Purpose**: Provide fee tier and token metadata for volume calculations
- **Logic**: Extract trading pair creation events from Factory contracts. For v3, use `NewPool_event` with fee tiers stored as basis points (divide by 1,000,000 to get decimal). For v1, use `PairCreated_event` with hardcoded fee tiers - 0.2% for regular pools and 0.1% for specific stable pool addresses. Join with token metadata to get decimal places and symbols for pair naming. Create lookup table linking pool addresses to their configurations.
- **Key fields**: `account_address`, `fee_tier`, `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`

### Component D: Fee calculation
- **Purpose**: Calculate total protocol fees from trading and flash loan activity
- **Logic**: Multiply trading volume by respective fee tiers for each trading pair and day. Multiply flash loan volume by respective fee tiers for each trading pair and day. Sum trading fees and flash loan fees to get total daily fees per trading pair. Aggregate across all trading pairs to get protocol-wide daily fees.
- **Key fields**: `fees` (trading volume × fee tier + flash loan volume × fee tier)

### Final aggregation
- **Combining components**: Sum fees from all trading pairs and both volume sources (regular trading + flash loans) to get total daily protocol fees
- **Currency conversion**: All volumes converted to USD using end-of-day price feeds before fee calculation
- **Time aggregation**: Daily aggregation using timestamp truncation to day boundaries
- **Final calculation**: Apply 75% multiplier to total fees to get supply-side portion (`fees × 0.75`), representing the share allocated to liquidity providers vs protocol treasury

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

Portion of fees distributed to service providers or supply-side participants.

BiswapBSW

Supply-side fees

Supply-side fees

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