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.

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Hydration

# Hydration Average trading volume (per trade) Methodology

## 1. Overview

Average trading volume (per trade) measures the average USD value of a single swap executed on Hydration DEX. This metric is calculated by dividing the total daily trading volume by the total number of trades. It serves as a key indicator of the user profile on the protocol, where higher average values typically suggest institutional activity and lower values indicate retail-driven usage.

## 2. Data sources

- **Blockchain events**: `Swapped`, `Swapped2`, and `Swapped3` events from the `broadcast` pallet on Hydration Substrate
- **External data**: End-of-day price feeds for all traded assets

## 3. Step-by-step calculation

### Component A: Hydration DEX swap extraction

- **Purpose**: Capture raw trading activity from the decentralized exchange
- **Logic**: `Swapped`, `Swapped2`, and `Swapped3` events are parsed from the `broadcast` pallet on Hydration Substrate. For each event, the swapper address, asset identifiers for the incoming and outgoing legs, and raw transaction amounts are extracted.
- **Key fields**: `amount_in`, `amount_out`, `asset_in`, `asset_out`, and `extrinsic_id`

### Component B: Trade count and volume normalization

- **Purpose**: Quantify the total number of unique trades and normalize asset amounts
- **Logic**: Raw asset amounts are normalized by decimal precision using asset metadata. The daily trade count is calculated by aggregating the number of distinct extrinsic identifiers associated with the parsed swap events.
- **Key fields**: `extrinsic_id` (used for distinct count), `token0_amount`, and `token1_amount`

### Component C: USD conversion and outlier filtering

- **Purpose**: Normalize trading activity to USD while mitigating data noise
- **Logic**: Normalized amounts are multiplied by end-of-day price feeds. To prevent price manipulation and exclude outliers, the trading volume for each transaction is determined by taking the minimum USD value between the incoming and outgoing asset legs. These values are then summed to arrive at the total daily trading volume for Hydration DEX.
- **Key fields**: `trading_volume` and `price_usd`

### Component D: Final average calculation

- **Purpose**: Determine the average value per individual trade
- **Logic**: The total daily trading volume (summed across all pairs) is divided by the daily trade count. This calculation is performed at a daily granularity using UTC day boundaries, resulting in the final average trading volume per trade metric.
- **Key fields**: `trading_volume` and `trade_count`

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

HydrationHDX

Average trading volume (per trade)

Average trading volume (per trade)

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