Liquidity providers deposit funds into Katana and receive trading fees from traders (supply-side fees).

Katana is a non-custodial exchange protocol built on Ronin. Katana was founded by Sky Mavis and launched in 2021.

The Ronin team own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Exchanges (DEX)

Katana (Ronin)

# Katana Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures the efficiency of liquidity utilization in the Katana decentralized exchange by calculating the ratio of trading volume to total value locked (TVL). This metric indicates how many times the available liquidity is turned over through trading activity on a daily basis. A higher turnover ratio suggests more efficient capital utilization, while a lower ratio may indicate underutilized liquidity pools.

The calculation follows the formula: Liquidity Turnover = Daily Trading Volume / Daily TVL

## 2. Data sources

The calculation relies on several key data sources from the Ronin blockchain and external systems:

- **Blockchain events**: Parsed `Pair_Swap` events from Katana v1 AMM contracts on Ronin, capturing all trading activity including token amounts and transaction details
- **Reserve data**: Parsed `Pair_Sync` events from Katana v1 AMM contracts showing liquidity pool reserve balance updates
- **Trading pair metadata**: Parsed `Factory_PairCreated` events from Katana v1 factory contracts providing trading pair configurations and fee tiers  
- **Transaction data**: Ronin blockchain transaction records containing user addresses and transaction context
- **Price feeds**: End-of-day token price data in USD for currency conversion
- **Token metadata**: Token information including decimals, symbols, and names from both global token registry and Katana-specific manual configurations

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculates daily USD trading volume across all Katana trading pairs
- **Logic**: Extracts swap events from Katana AMM contracts on Ronin, identifying individual trades by transaction hash and log index. For each trade, calculates net token amount changes by subtracting token outputs from inputs (`amount0In - amount0Out`, `amount1In - amount1Out`). Joins with trading pair metadata to obtain token decimal places and applies decimal correction by dividing raw amounts by 10^decimals. Aggregates absolute token amounts daily per trading pair. Converts token amounts to USD using end-of-day price feeds, taking the lesser of the two token USD values to filter out potential price manipulation attacks. Sums across all trading pairs to get total daily volume
- **Key fields**: `token0_amount` and `token1_amount` (net changes), `token0_decimals` and `token1_decimals` (for correction), `trading_volume` (final USD amount)

### Component B: TVL calculation via net deposits
- **Purpose**: Calculates total value locked by tracking cumulative net liquidity deposits
- **Logic**: Processes reserve sync events from Katana AMM contracts showing balance updates in liquidity pools. For each trading pair, joins with metadata to get token decimals and applies decimal correction. Calculates daily reserve changes by taking the last reserve balance each day and computing the difference from the previous day's balance using lag window functions. For new pools, uses the first day's balance as the initial deposit. Converts reserve changes to USD using end-of-day price feeds and sums token0 and token1 values. Aggregates net deposits across all pools to get daily net flow. Calculates TVL as the cumulative sum of net deposits over time
- **Key fields**: `reserve0_amount` and `reserve1_amount` (pool balances), `token0_amount` and `token1_amount` (daily changes), `net_deposits` (USD flow)

### Final aggregation
- **Combining components**: Trading volume and TVL are calculated independently using the same daily timestamp boundaries. Both components use the same trading pair metadata and price feeds for consistency
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds matched by timestamp, token address, and chain. Missing prices default to zero
- **Time aggregation**: Data is aggregated to daily granularity using timestamp truncation to day boundaries
- **Final calculation**: Liquidity turnover is calculated by dividing daily trading volume by daily TVL. Days with zero TVL result in null turnover values. Missing data is filled with zeros according to the fill strategy

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

Trading volume divided by total liquidity.

Katana (Ronin)

Liquidity turnover

Liquidity turnover

Competitive landscape