# Constant Product Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed on Etherex Constant Product. Since users have to pay trading fees on their trades, this metric tends to correlate with the DEX project's ability to generate fees and revenue. This metric reflects the economic throughput of the Constant Product liquidity pools and is used to assess market activity and liquidity utilization.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pair` contracts and `PairCreated` events from `Factory` contracts, covering Linea
- **External data**: End-of-day price feeds for assets traded within the pools

## 3. Step-by-step calculation

### Component A: Swap event extraction

- **Purpose**: Capture raw trade data from Constant Product liquidity pools.
- **Logic**: `Swap` events are parsed from `Pair` contracts. The net change for each asset in the pair is determined by calculating the difference between the input amount and the output amount. Transaction-level data, including the transaction hash and block timestamp, is captured to maintain a precise record of every swap executed on the protocol.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, and `amount1Out`

### Component B: Pool and asset mapping

- **Purpose**: Link swap activity to specific assets and their decimal configurations.
- **Logic**: `PairCreated` events from `Factory` contracts are used to identify unique pool addresses and the two assets that comprise the trading pair. This information is joined with asset metadata to retrieve the necessary decimal precision for each asset. This mapping ensures that raw integer values from the blockchain are correctly interpreted according to each asset's specific standard.
- **Key fields**: `pool_address`, `token0_address`, and `token1_address`

### Component C: Normalization and USD conversion

- **Purpose**: Normalize trade values and convert them to a standard currency for cross-chain and cross-project comparison.
- **Logic**: Raw asset amounts are normalized by decimal precision. The quantities are then multiplied by end-of-day price feeds to determine the USD value of each asset involved in the swap. To filter out potential price manipulation or anomalies in low-liquidity pools, the lower USD value of the two assets in the pair is selected as the canonical trading volume for the transaction.

### Component D: Daily aggregation

- **Purpose**: Provide a time-series view of trading activity.
- **Logic**: Individual trade volumes are summed at a daily granularity. All timestamps are converted to UTC, and daily totals are calculated using midnight-to-midnight boundaries. The final output provides a clean, zero-filled time series of trading volume across the protocol.

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

Total value of spot trades executed on the exchange.

Trading volume

Constant Product

Archived

Trading volume

Trading volume