# Hydration DEX Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed on Hydration DEX. This metric reflects the liquidity and activity levels within the protocol's swap environment. Since trading fees are typically derived from the volume of assets exchanged, this metric serves as a primary indicator of the project's ability to generate fees and protocol revenue.

## 2. Data sources

- **Blockchain events**: `Swapped`, `Swapped2`, and `Swapped3` events from `broadcast` pallets, covering Hydration Substrate
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Swap event extraction

- **Purpose**: Identify and extract raw trade data from the blockchain.
- **Logic**: `Swapped`, `Swapped2`, and `Swapped3` events are parsed from the `broadcast` pallet. For each event, the swapper address, input asset identifier, input amount, output asset identifier, and output amount are extracted.
- **Key fields**: `asset_in`, `amount_in`, `asset_out`, and `amount_out`.

### Component B: Asset normalization and valuation

- **Purpose**: Convert raw on-chain amounts into standardized human-readable units and USD values.
- **Logic**: Asset identifiers are joined with asset metadata to retrieve decimal precision and symbol information. Amounts are normalized by decimal precision. Normalized amounts are then multiplied by end-of-day asset prices to calculate the USD value for both the input and output sides of the trade.

### Component C: Trading volume determination and outlier mitigation

- **Purpose**: Ensure data integrity and prevent volume inflation through price manipulation or reporting errors.
- **Logic**: Trading volume is generally calculated by taking the minimum (least) USD value between the input asset and the output asset for every transaction. If one asset in a pair lacks a valid price feed, the value of the priced asset is used, provided the resulting value does not exceed a safety threshold of $10,000,000. Trades where neither asset can be priced are excluded from the calculation.

### Component D: Final aggregation

- **Purpose**: Consolidate trade-level data into periodic totals.
- **Logic**: Individual trade values are summed by day, product (Hydration DEX), and chain. Daily totals are calculated using UTC day boundaries. Any gaps in the time series are filled with zero values to ensure a continuous data record.

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Hydration is a Polkadot parachain specialized in trading, lending, and stablecoin issuance.

HDX holders own and govern the protocol. Hydration’s investors include KR1 plc, Hypersphere, etc.

Hydration DEX

Trading volume

Trading volume

Chain breakdown