Liquidity providers deposit funds into Equalizer and stake their LP tokens to receive EQUAL tokens (token incentives).

Equalizer is a non-custodial exchange protocol built on Fantom. Equalizer was founded by Blake Hooper and launched in 2022.

EQUAL tokenholders own and govern the protocol. They vote for pools where they wish to receive trading fees and external bribes from, while pools receive EQUAL emissions in respect to their share of votes.

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Equalizer Exchange

# Equalizer Exchange Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures how efficiently Equalizer's liquidity pools are utilized by dividing daily trading volume by total value locked (TVL). This metric indicates how many times the protocol's liquidity "turns over" through trading activity each day. A higher turnover ratio suggests more active trading relative to the amount of liquidity provided, indicating better capital efficiency.

## 2. Data sources

The calculation relies on several blockchain data sources from the Equalizer V1 protocol on Fantom:

- **Trading events**: Parsed `Pair_Swap` event logs from Equalizer V1 liquidity pool contracts showing swap transactions with token amounts in and out
- **Reserve updates**: Parsed `Pair_Sync` event logs showing liquidity pool reserve balances after each transaction
- **Trading pair creation**: Parsed `PairFactory_PairCreated` event logs identifying all trading pair contracts and their underlying tokens
- **Transaction data**: Fantom transaction records providing user addresses and timestamps
- **Price feeds**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token symbols and decimal precision information for proper amount calculations

## 3. Step-by-step calculation

### Component A: Trading volume calculation

- **Purpose**: Calculates daily USD trading volume across all Equalizer trading pairs
- **Logic**: Extracts `Pair_Swap` events from Equalizer V1 contracts on Fantom, capturing `amount0In`, `amount0Out`, `amount1In`, and `amount1Out` values. For each swap, calculates the net change in each token by subtracting out amounts from in amounts. Joins with transaction data to get user addresses and filters to transactions from November 14, 2022 onward. Groups by day and trading pair, summing the absolute values of token amount changes. Corrects for token decimals using metadata from the trading pairs dimension table. Converts both token amounts to USD using end-of-day price feeds and takes the minimum of the two USD values to prevent price manipulation attacks. Aggregates across all trading pairs to get total daily volume.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` from swap events, `token0_decimals` and `token1_decimals` for decimal correction, `price_usd` from price feeds

### Component B: Total value locked (TVL) calculation

- **Purpose**: Calculates the total USD value of assets locked in Equalizer liquidity pools
- **Logic**: Starts by extracting `Pair_Sync` events showing `reserve0` and `reserve1` balances for each liquidity pool. Joins with trading pair metadata to get token addresses and decimals. Corrects reserve amounts for token decimals by dividing by 10 raised to the decimal precision. For each day and trading pair, takes the last reserve values from that day using window functions. Calculates daily net changes in reserves by comparing each day's ending reserves to the previous day's ending reserves, with the first day using the full reserve amount. Converts token amounts to USD using end-of-day price feeds and sums both tokens per pair. The TVL represents the cumulative net deposits (reserve changes) over time, indicating total value locked in the protocol.
- **Key fields**: `reserve0_amount` and `reserve1_amount` from sync events, `token0_address` and `token1_address` from pair creation events, token decimals for amount correction

### Final aggregation

- **Combining components**: The liquidity turnover metric divides the daily trading volume by the daily TVL using the `calculate_liquidity_turnover` macro
- **Currency conversion**: Both trading volume and TVL are converted to USD using end-of-day token price feeds matched by timestamp, token address, and blockchain
- **Time aggregation**: All calculations are performed at daily granularity using `timestamp_trunc` to day boundaries
- **Final calculation**: Liquidity turnover = Daily Trading Volume (USD) / Daily TVL (USD), providing a ratio indicating how many times the locked liquidity turns over through trading each day

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

Trading volume divided by total liquidity.

Equalizer ExchangeEQUAL

Liquidity turnover

Liquidity turnover

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