DEX aggregators

Oku Trade

# Oku Trade Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures how actively the liquidity in Okutrade pools is being utilized by calculating the ratio of daily trading volume to total value locked (TVL). This metric indicates the efficiency of capital deployment in the protocol - higher turnover suggests more active trading relative to the available liquidity. The calculation divides the daily USD trading volume by the TVL on each day.

## 2. Data sources

- **XDC network event logs**: Parsed `Pool_Swap_event`, `Pool_Mint_event`, `Pool_Collect_event`, and `Pool_Flash_event` logs from Okutrade v3 pools
- **Factory events**: XDC network `Factory_PoolCreated_event` logs containing pool creation data with token pairs and fee tiers
- **Transaction data**: XDC network transaction records to link flash loan events to user addresses
- **External data**: End-of-day token price feeds for USD conversion and token metadata including decimals and symbols

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Establish the universe of Okutrade v3 trading pools and their characteristics
- **Logic**: Extract pool creation events from the factory contract on XDC network, capturing the pool address, token pair addresses, and fee tier for each pool. Join with token metadata to obtain decimal places and symbols for proper amount normalization and pool naming
- **Key fields**: `account_address` (pool address), `token0_address`, `token1_address`, `fee_tier`, token decimals and symbols

### Component B: Trading volume calculation  
- **Purpose**: Calculate the daily USD trading volume for each pool
- **Logic**: Extract `Pool_Swap_event` logs from XDC network, capturing the absolute amounts of both tokens involved in each swap. Apply decimal correction using token metadata, then convert both token amounts to USD using end-of-day price feeds. To prevent price manipulation, take the lesser of the two USD values for each trade. Aggregate all trades daily by summing the USD values for each pool
- **Key fields**: `token0_amount`, `token1_amount` (swap amounts), converted to USD values after decimal correction

### Component C: Asset flow aggregation
- **Purpose**: Track all changes to pool reserves from various activities
- **Logic**: Combine four types of pool events with different effects on reserves. Deposits from `Pool_Mint_event` increase reserves with positive token amounts. Withdrawals from `Pool_Collect_event` decrease reserves with negative token amounts. Trades from `Pool_Swap_event` represent token exchanges. Flash loans from `Pool_Flash_event` generate fee revenue, calculated by multiplying the flash loan amounts by the pool's fee tier. Apply decimal corrections and aggregate all flows daily by pool
- **Key fields**: `token0_amount`, `token1_amount` from each event type, with appropriate signs and fee calculations

### Component D: Net deposits and TVL calculation
- **Purpose**: Calculate the total value locked in each pool over time
- **Logic**: Convert the aggregated daily asset flows to USD using end-of-day price feeds by multiplying token amounts by their respective USD prices and summing both token values. Calculate the cumulative sum of these daily USD flows over time to represent the total value locked. This running total reflects how much value has been deposited net of withdrawals, trades, and fee generation
- **Key fields**: Daily net deposit amounts in USD, cumulative TVL values over time

### Final aggregation
- **Combining components**: Divide the daily trading volume (Component B) by the TVL (Component D) for each day and pool
- **Currency conversion**: Both trading volume and TVL are converted to USD using end-of-day token price feeds before the division
- **Time aggregation**: All calculations use daily time boundaries with timestamp truncation to day level
- **Final calculation**: Liquidity turnover equals daily trading volume divided by TVL, with zero-filling applied for days with missing data to ensure continuous time series

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

Trading volume divided by total liquidity.

Oku Trade

Liquidity turnover

Liquidity turnover

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