# Fathom DEX Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed on Fathom DEX. The metric is utilized to assess the platform's liquidity and its capacity to generate fee-based revenue. Trading activity is captured and aggregated across all decentralized spot exchange pools within the Fathom DEX ecosystem.

## 2. Data sources

- **Blockchain events**: `PairCreated` events from `Factory` contracts and `Swap` events from `Pair` contracts, covering XDC Network
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Fathom DEX trading pair identification

- **Purpose**: Identify the liquidity pools and associated assets required for volume tracking
- **Logic**: `PairCreated` events are parsed from `Factory` contracts to identify unique trading pool addresses. For each identified pool, the addresses and decimal precision for the constituent assets are retrieved from asset metadata. Fee tier information is extracted directly from the creation events to categorize the trading pairs.
- **Key fields**: `account_address`, `token0_address`, `token1_address`, `fee_tier`

### Component B: Fathom DEX trade extraction

- **Purpose**: Capture individual swap transactions and calculate the net change in assets
- **Logic**: `Swap` events are parsed from `Pair` contracts. For every transaction, the net quantity of each asset is calculated by finding the difference between the incoming and outgoing amounts. These quantities are normalized by the decimal precision of the respective assets to ensure consistency across different asset types.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `block_timestamp`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize all trading activity to a common USD value for reporting
- **Logic**: Normalized asset quantities are multiplied by end-of-day price feeds to determine the USD value of each trade. A priority logic is applied where the value is calculated based on the first asset in the pair; if its price is unavailable, the price of the second asset is utilized as a fallback. Total trading volumes are aggregated by day and chain using UTC timestamps.
- **Key fields**: `timestamp`, `price_usd`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)