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

Merkle Trade is a non-custodial perpetual exchange protocol built on Aptos.

MKL tokenholders own and govern the protocol. They do currently take a cut of the total trading fees paid by traders (revenue). Merkle Trade's investors include Arrington Capital, Hashed, etc.

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Derivative exchanges

Merkle Trade

# Merkle Trade Notional trading volume Methodology

## 1. Overview

The MerkleTrader notional trading volume metric measures the total USD-denominated trading volume on the MerkleTrader derivatives protocol deployed on Aptos. This metric captures the notional value of all position events (trades) executed through the protocol, providing a daily aggregate of trading activity. The calculation directly uses USD amounts embedded in the protocol's smart contract events, eliminating the need for separate price conversion.

## 2. Data sources

- **MerkleTrader protocol events**: `Trading_PositionEvent_event` logs emitted by MerkleTrader smart contracts on the Aptos blockchain
- **Aptos blockchain metadata**: Block timestamps, block heights, transaction hashes, and event indices for data provenance and time-based aggregation
- **Protocol-specific data**: User addresses and event metadata to distinguish genuine trading events from system operations

## 3. Step-by-step calculation

### Component A: Trade event extraction and processing
- **Purpose**: Extract and process individual trading events from MerkleTrader's smart contracts on Aptos
- **Logic**: The calculation begins with `Trading_PositionEvent_event` logs from MerkleTrader contracts. These events contain a `size_delta` field representing the USD-denominated notional volume of each trade. The `size_delta` values are stored as 6-decimal fixed-point integers and must be converted to standard decimal format by dividing by 1,000,000. Events are filtered to exclude system operations by removing records where the `user` address matches the `event_guid_account_address`, ensuring only genuine user trading activity is captured.
- **Key fields**: `size_delta` (6-decimal USD amounts), `user` (trader address), `event_guid_account_address` (system address), `block_timestamp` (event timing)

### Final aggregation
- **Combining components**: Individual trade amounts are summed by day using daily timestamp truncation of block timestamps
- **Currency conversion**: No currency conversion needed as `size_delta` values are already denominated in USD within the protocol events
- **Time aggregation**: Block timestamps are truncated to daily boundaries to create daily trading volume totals
- **Final calculation**: The final metric value is the sum of all processed trade amounts within each day, with gaps filled using zeros to ensure complete daily coverage and chain availability filters applied to maintain data quality

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

Total USD value of derivative contracts executed on the protocol.

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Notional trading volume

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