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

KyberSwap is a non-custodial exchange protocol & aggregator built on Ethereum and other adjacent blockchains. KyberSwap was founded by Loi Luu and Victor Tran in 2017.

KNC tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Kyber Network raised $52 million in an ICO in 2017.

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KyberSwap

# KyberSwap Liquidity turnover Methodology

## 1. Overview

KyberSwap Liquidity turnover measures how efficiently liquidity is being utilized by calculating the ratio of daily trading volume to total value locked (TVL). The number of times the entire liquidity pool is traded per day is indicated by this metric, with more active and efficient liquidity usage suggested by higher values. The ratio is calculated by dividing the daily trading volume across all KyberSwap protocols by the TVL for the same day.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory`, `KSFactory`, and `ElasticFactory` contracts; `Swap` events from KyberSwap V2 (`KSPool`, `DMMPool`) and V3 (`Pool`, `ElasticPool`) contracts; `Swapped` events from KyberSwap V1 `MetaAggregationRouter` contracts; `KyberTrade` and `ExecuteTrade` events from legacy contracts; `Mint` and `Burn` events from KyberSwap V3 contracts; `Sync` events from KyberSwap contracts; and `Flash` events from KyberSwap V3 contracts, covering Ethereum, Arbitrum, Polygon, Base, and 12 other chains
- **External data**: End-of-day price feeds for assets

## 3. Step-by-step calculation

### Component A: Trading volume calculation

- **Purpose**: Calculates total daily trading volume across all KyberSwap protocols in USD
- **Logic**: Trading events are extracted from multiple sources including V2 and V3 AMM `Swap` events, V1 aggregator `Swapped` events, and legacy `ExecuteTrade` events. For each trade, the absolute amounts of both assets involved are calculated, corrected for decimal precision using asset metadata, and converted to USD using daily price feeds. The lesser of the two USD values is selected to prevent price manipulation. Trades are aggregated daily and summed across all chains and products.
- **Key fields**: `deltaQty0` and `deltaQty1` from V3 swaps, `amount0In` and `amount0Out` differences from V2 swaps, `spentAmount` and `returnAmount` from aggregator trades, and `actualSrcAmount` and `actualDestAmount` from legacy trades

### Component B: TVL calculation via V2 reserve tracking

- **Purpose**: Tracks total value locked in KyberSwap V2 pools through reserve balance changes
- **Logic**: `Sync` events from V2 `KSPool` and `DMMPool` contracts are monitored to capture current reserve balances. Daily balance changes are calculated by taking the difference between consecutive days' final balances, corrected for decimal precision using asset metadata, and converted to USD using daily price feeds. Changes are accumulated to track net deposits over time.
- **Key fields**: `reserve0` and `reserve1` amounts from `Sync` events

### Component C: TVL calculation via V3 asset flows

- **Purpose**: Tracks total value locked in KyberSwap V3 pools by monitoring all asset flow events
- **Logic**: Multiple event types are aggregated including `Mint` events for deposits, `Burn` events for withdrawals, `Swap` events for trading, and `Flash` events for flash loan fees. Flows are summed daily per pool, corrected for decimal precision using asset metadata, and converted to USD using daily price feeds. Flows are accumulated to maintain a running TVL balance.
- **Key fields**: `qty0` and `qty1` from `Mint` and `Burn` events, trading amounts from `Swap` events, and `paid0` and `paid1` fees from `Flash` events

### Component D: Final aggregation and ratio calculation

- **Purpose**: Combine components and normalize to USD
- **Logic**: Trading volume from Component A is combined with TVL from Components B and C to determine the final ratio. All asset amounts are converted to USD using end-of-day price feeds at market close, with missing prices defaulting to zero. Both volume and TVL are calculated on daily boundaries using timestamp truncation to ensure aligned time periods. Daily trading volume is divided by daily TVL to produce the liquidity turnover ratio, with a zero-fill strategy applied to missing data to maintain a continuous time series.

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

Trading volume divided by total liquidity.

KyberSwapKNC

Liquidity turnover

Liquidity turnover

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