# dYdX V3 Notional trading volume Methodology

## 1. Overview

Notional trading volume measures the total value of perpetual derivative contracts executed on dYdX V3. This metric reflects the total trading activity and liquidity on the protocol's StarkEx-based implementation. Since users pay trading fees on each trade, this metric is utilized as a primary indicator of the protocol's ability to generate fees and revenue.

## 2. Data sources

- **External data**: Perpetual trading data from market candles and historical performance records, covering the StarkEx L2

## 3. Step-by-step calculation

### Component A: Historical volume retrieval

- **Purpose**: Capture trading activity for periods prior to January 1, 2023
- **Logic**: Historical trading volumes are extracted from legacy synchronized data tables. The gross merchandise value is mapped to the corresponding daily timestamp and associated with the dYdX V3 product ID on the StarkEx L2.
- **Key fields**: `daily_timestamp` (timing), `gmv` (historical volume amount)

### Component B: Candle-based volume tracking

- **Purpose**: Capture trading activity from January 1, 2023, to the present
- **Logic**: Trading data is parsed from market-level candle records retrieved via API. The total volume amount is extracted for each distinct market contract and timestamp. Records are filtered to ensure only data from the dYdX V3 implementation is included.
- **Key fields**: `timestamp` (timing), `volume_amount` (notional trading volume), `contract_name` (market identification)

### Component C: Final consolidation and aggregation

- **Purpose**: Combine volume sources into a unified daily time series
- **Logic**: Historical records and candle-based data are unified into a single dataset. Volume amounts are cast to a standardized numeric format and aggregated to daily granularity. The final values are mapped to the StarkEx L2 and the dYdX V3 product identifier, with daily boundaries defined by UTC.
- **Key fields**: `timestamp` (daily grain), `notional_trading_volume` (summed volume)

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

Total USD value of derivative contracts executed on the protocol.

Notional trading volume

Exchanges (DEX)

Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

dYdX V3

Notional trading volume

Notional trading volume

Chain breakdown