Honeypop is an AMM and concentrated liquidity layer on Scroll, built for efficient swaps and real yield. It will also feature a Morpho-powered money market, enabling seamless lending and borrowing.

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Honeypop

# Honeypop Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures the efficiency of capital utilization in Honeypop's AMM pools by calculating the ratio of daily trading volume to total value locked (TVL). This metric indicates how frequently the liquidity in the protocol is being utilized for trading activities. A higher turnover ratio suggests more active trading relative to the liquidity provided, indicating efficient capital utilization.

The calculation follows the formula: Liquidity Turnover = Daily Trading Volume / TVL, where both components are measured in USD.

## 2. Data sources

- **Honeypop pool events**: Parsed Scroll blockchain event logs from Honeypop v1 protocol contracts including `Pool_Swap_event`, `Pool_Mint_event`, `Pool_Collect_event`, and `Pool_Flash_event`
- **Factory creation events**: Scroll blockchain `Factory_PoolCreated_event` logs that identify valid trading pairs with their token addresses and fee tiers
- **Transaction data**: Scroll blockchain transaction records used to map contract interactions to end user addresses
- **Price feeds**: End-of-day token price data for USD conversion of all token amounts
- **Token metadata**: Token contract information including decimal precision and symbols for proper amount scaling

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identify all valid Honeypop trading pairs and their configuration
- **Logic**: Extract trading pair creation events from Honeypop Factory contracts on Scroll blockchain. Each `PoolCreated` event provides the pool contract address, token0 and token1 addresses, and fee tier. Join with token metadata to obtain decimal precision and symbols for each token pair. Apply denylist filter to exclude any problematic pairs (currently empty for Honeypop).
- **Key fields**: Pool contract `address`, `token0` and `token1` addresses, `fee` tier, token `decimals` and `symbol` data

### Component B: Trading volume calculation
- **Purpose**: Calculate daily USD trading volume across all Honeypop pools
- **Logic**: Extract all `Pool_Swap_event` logs from identified trading pairs on Scroll blockchain. Each swap contains `amount0` and `amount1` values representing token flow changes. Convert token amounts to proper decimal representation by dividing by 10^decimals. Convert both token amounts to USD using end-of-day price feeds. Apply the `least()` function between token0_usd and token1_usd values to prevent manipulation from price discrepancies. Aggregate swap volumes daily by truncating timestamps. Filter out swaps from denylisted pools and exclude invalid price data.
- **Key fields**: `amount0` and `amount1` from swap events, `block_timestamp` for daily grouping, token `decimals` for scaling, `price_usd` from price feeds

### Component C: TVL calculation from asset flows
- **Purpose**: Calculate total value locked by tracking all asset movements in and out of pools
- **Logic**: Combine four types of asset flow events affecting pool reserves. Deposits from `Pool_Mint_event` logs (positive amounts). Withdrawals from `Pool_Collect_event` logs (negative amounts). Trading flows from `Pool_Swap_event` logs (net position changes). Flash loan fees from `Pool_Flash_event` logs (amounts multiplied by pool fee tier to capture protocol revenue). Convert all token amounts using decimal correction and USD price feeds. Sum all flows cumulatively over time to derive running TVL balance. Aggregate daily using timestamp truncation.
- **Key fields**: `amount0` and `amount1` from all event types, fee `tier` for flash loan calculations, `block_timestamp` for chronological ordering

### Final aggregation
- **Combining components**: Trading volume and TVL are calculated independently then joined by date and chain for the division calculation
- **Currency conversion**: All token amounts converted to USD using end-of-day price feeds matched by token address, chain, and timestamp
- **Time aggregation**: Daily boundaries established by truncating timestamps to day level, ensuring consistent time windows across all components
- **Final calculation**: Liquidity turnover computed as trading_volume divided by TVL for each day, with zero-fill strategy applied for days with missing data to maintain continuous time series

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

Trading volume divided by total liquidity.

Honeypop

Liquidity turnover

Liquidity turnover

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