# LayerZero V2 Transfer volume Methodology

## 1. Overview

Transfer volume is defined as the total value of assets moved across chains using LayerZero V2 and Stargate infrastructure. The economic activity facilitated by the protocol is captured by this metric, which directly correlates with the ability to generate fees and revenue from cross-chain messaging and liquidity provision. All transfer values are normalized to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `OFTSent` and `OFTReceived` events from `OFT` contracts, `Fill` events from `AoriSettlement` contracts, `BusDriven` events from `StargateTokenMessaging` contracts, `PacketDelivered` and `PacketSent` events, and `send` function calls from `EndpointV2` contracts, covering Ethereum, Arbitrum, Avalanche, Base, and 25 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: LayerZero V2 OFT transfer tracking

- **Purpose**: Asset transfers utilizing the Omnichain Fungible Token (OFT) standard on LayerZero V2 are captured.
- **Logic**: `OFTSent` events are parsed from `OFT` contracts. To ensure data integrity and exclude potential forks, these events are validated against endpoint activity. For a primary set of active chains, validation is performed by joining with `send` function calls from `EndpointV2` contracts using transaction hashes and block timestamps. For expansion chains, validation is performed by verifying the existence of corresponding `PacketSent` events from `EndpointV2` contracts. The raw volume is extracted from the `amountSentLD` field.
- **Key fields**: `amountSentLD` (raw transfer amount), `address` (OFT contract address), `transaction_hash` (unique identifier).

### Component B: Stargate V2 transfer and fast swap tracking

- **Purpose**: Cross-chain volume specifically routed through Stargate V2 liquidity and fast swap mechanisms is identified.
- **Logic**: For standard messaging, `OFTReceived` events from `OFT` contracts are joined with `PacketDelivered` events from `EndpointV2` contracts. These are further filtered by joining with `BusDriven` events from `StargateTokenMessaging` contracts using unique message identifiers to ensure only Stargate-related activity is included. For fast swaps, `Fill` events are parsed from `AoriSettlement` contracts, where output amounts are extracted from the order data. Native gas assets (such as ETH or BNB) are identified via predefined pricing asset mappings.
- **Key fields**: `amountReceivedLD` (received amount), `outputAmount` (swap volume), `guid` (unique message identifier).

### Component C: Asset mapping and normalization

- **Purpose**: OFT addresses are mapped to underlying assets and raw values are adjusted for decimal precision.
- **Logic**: OFT addresses are resolved to their corresponding underlying asset addresses using a mapping derived from protocol state calls. In instances where the underlying asset is represented by a null address, the wrapped gas asset address for the respective chain is applied. All raw transfer amounts are then normalized by dividing the values by the decimal precision associated with the identified underlying asset.
- **Key fields**: `oft_address`, `underlying_token_address`, `decimals`.

### Component D: USD conversion and final aggregation

- **Purpose**: Normalized transfer volumes are converted into a standardized USD value and data is aggregated by chain.
- **Logic**: Normalized asset amounts are multiplied by the end-of-day price feeds for the respective underlying assets. The resulting USD volumes are aggregated by the source chain, product (LayerZero V2 or Stargate), and timestamp. Data is zero-filled for days with no activity and is finalized at a daily granularity using UTC day boundaries.
- **Key fields**: `transfer_volume` (USD-denominated volume), `source_chain`, `timestamp`.

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

Total value of assets moved across chains through a bridge.

Transfer volume

Interoperability

LayerZero uses a decentralized network of Validator Nodes to facilitate secure and fast communication between different blockchains.

LayerZero allows users to send and receive messages between different blockchains, and to bridge tokens between different blockchains.

LayerZero is a cross-chain interoperability protocol that enables secure and fast communication between different blockchains.

LayerZero v2

Transfer volume

Transfer volume

Chain breakdown