Kwenta builds on top of Synthetix to create a synthetic perpetuals trading platform. Traders on Kwenta trade futures against the liquidity provided by liquidity providers on Synthetix.

Kwenta is a non-custodial exchange for perpetual contracts built on Optimism. Kwenta was born out of the Synthetix community and launched in 2022.

KWENTA tokenholders own and govern the protocol. They currently do not take a cut of the total trading fees paid by traders (revenue).

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Kwenta

# Kwenta Notional trading volume Methodology

## 1. Overview

Kwenta notional trading volume measures the total dollar value of perpetual futures trades executed through the Kwenta platform. This metric captures trading activity on Synthetix perpetual futures contracts that are routed through Kwenta's interface, calculated by multiplying trade sizes by execution prices and aggregating daily. The metric answers how much trading volume Kwenta generates on the Synthetix protocol.

## 2. Data sources

- **Synthetix event logs**: Parsed `PositionModified` events from Synthetix FuturesMarket and ProxyPerpsV2 contracts on Optimism, containing trade execution data including trade sizes and prices
- **Synthetix tracking events**: Parsed `FuturesTracking` and `PerpsTracking` events from Synthetix contracts on Optimism, used to identify Kwenta-routed transactions via tracking codes  
- **Market creation events**: Parsed `MarketAdded` events from Synthetix FuturesMarketManager contracts on Optimism, providing market metadata and synthetic asset mappings
- **End-of-day price feeds**: Token price data for sUSD to USD conversion
- **Token metadata**: Synthetic asset symbol mappings for market identification

## 3. Step-by-step calculation

### Component A: Kwenta transaction filtering
- **Purpose**: Identify perpetual futures trades that were routed through Kwenta's platform
- **Logic**: Extract all Synthetix `FuturesTracking` and `PerpsTracking` events that contain Kwenta's specific tracking code (`0x4b57454e54410000000000000000000000000000000000000000000000000000`). This tracking code is embedded in transactions when users trade through Kwenta's interface. Create a whitelist of transaction hashes that correspond to Kwenta-routed trades across both v1 and v2 Synthetix perpetual contracts.
- **Key fields**: `transaction_hash` for joining with trade events, `trackingCode` for Kwenta identification, `version` to distinguish between Synthetix contract versions

### Component B: Trading volume extraction  
- **Purpose**: Calculate the notional dollar value of each perpetual futures trade
- **Logic**: Extract `PositionModified` events from Synthetix FuturesMarket and ProxyPerpsV2 contracts across multiple contract versions. Join these events with the Kwenta transaction whitelist to include only trades routed through Kwenta. For each trade, calculate notional volume as the absolute value of trade size multiplied by execution price. Both `tradeSize` and `lastPrice` fields are normalized from 18-decimal wei format to standard decimal format by dividing by 10^18. The absolute value ensures both long and short positions contribute positively to trading volume.
- **Key fields**: `tradeSize` (position size change), `lastPrice` (execution price), `address` (market contract), `block_timestamp` for daily aggregation

### Component C: Market metadata enrichment
- **Purpose**: Add market identification and categorization data to trading records
- **Logic**: Join trading volume data with market dimension data derived from Synthetix `MarketAdded` events. These events contain market contract addresses and corresponding synthetic asset identifiers. Convert synthetic asset bytes32 identifiers to readable symbols, with special handling for OP and GBP markets using hardcoded asset addresses. Add business categorization fields including market sector as 'derivatives', business segment as 'perpetual', and business line as 'Perpetual trading'.
- **Key fields**: `market` (market contract address), `synth_name` (synthetic asset symbol), business categorization fields

### Final aggregation
- **Combining components**: Trading volumes are aggregated by joining the filtered trade data with market metadata, grouping by daily timestamps, chain ID, and market attributes  
- **Currency conversion**: Convert sUSD-denominated notional volumes to USD using end-of-day price feeds and the `convert_to_usd_and_correct_decimals` macro with USD conversion enabled but decimal correction disabled
- **Time aggregation**: Aggregate trading volumes to daily boundaries using `timestamp_trunc` function, creating daily volume totals for each market and chain combination
- **Final calculation**: Sum all notional trading volumes within each daily period, apply USD conversion, validate data completeness using the `finalize_metric_notional_trading_volume` macro with zero-fill strategy for missing days, and filter results by chain availability

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

Total USD value of derivative contracts executed on the protocol.

KwentaKWENTA

Notional trading volume

Notional trading volume

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