Users are able to use the Orca protocol to transact with digital assets on a peer-to-peer or peer-to-protocol basis by trading against liquidity  pools, which are created and seeded by other users providing liquidity of a pair of tokens into such liquidity pools in exchange for a stake of the liquidity and trading fees generated by such pools.

Orca is a non-custodial automated market maker (AMM) protocol built on Solana. Orca was founded by Yutaro Mori and Grace Kwan and launched in 2021.

ORCA tokenholders govern the Orca protocol treasury, which receives a portion of the trading fees paid by users of the protocol.

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Orca

Orca | Data Breakdown

# Orca Liquidity turnover Methodology

## 1. Overview

Liquidity turnover is measured to assess the efficiency of capital utilization in Orca's liquidity pools by calculating the ratio of daily trading volume to total value locked (TVL). How many times the available liquidity is turned over through trading activity each day is indicated by this metric. More efficient capital deployment is suggested by higher turnover rates, while underutilized liquidity may be indicated by lower rates. The standard formula is followed for the calculation: Liquidity Turnover = Trading Volume / TVL.

## 2. Data sources

- **Blockchain events**: `InitializePool`, `InitializePoolV2`, and `InitializePoolWithAdaptiveFee` instructions from `Whirlpool` programs, `Initialize` instructions from `TokenSwapV2` programs, DEX trade activity, and asset balance changes, covering Solana
- **External data**: End-of-day price feeds for assets

## 3. Step-by-step calculation

### Component A: Trading volume calculation

- **Purpose**: Daily USD trading volume is calculated for each Orca pool.
- **Logic**: Solana DEX trade activity is filtered for two specific Orca program accounts: `whirLbMiicVdio4qvUfM5KAg6Ct8VwpYzGff3uctyCc` (`Whirlpools`) and `9W959DqEETiGZocYWCQPaJ6sBmUzgfxXfqGeTEdp3aQP` (`Orca Token Swap V2`). For each trade, the `base_amount` and `quote_amount` are extracted along with corresponding asset mint accounts (`base_mint` and `quote_mint`). Both asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. To prevent double-counting, the minimum of the two USD values is generally taken, except for trades involving exactly one tokenized stock asset, which are valued solely on the tokenized stock leg. The resulting volumes are aggregated by day, pool account, and product type.
- **Key fields**: `block_timestamp`, `pool_address`, `base_mint`, `quote_mint`, `base_amount`, `quote_amount`, `outer_program`, `inner_program`

### Component B: Vault identification and mapping

- **Purpose**: Trading pools are mapped to their underlying vault accounts that hold the actual assets.
- **Logic**: Vault accounts `base_vault` and `quote_vault` are extracted from the same DEX trade activity used for volume calculation. A mapping is created between each pool account and its associated vault accounts. Each vault-pool relationship is categorized by product type based on the program accounts involved in the trades. This mapping is utilized because balance changes are recorded at the vault level while trades are attributed to pool accounts.
- **Key fields**: `pool_address`, `base_vault`, `quote_vault`, `product_id`

### Component C: TVL calculation

- **Purpose**: The total value locked in each pool is calculated by tracking asset balances in vault accounts.
- **Logic**: Solana asset balance changes are monitored for all identified vault accounts. For each vault, the `post_balance` of assets is tracked after each transaction. Balance data is forward-filled to ensure continuous daily snapshots even when no balance changes occur. Asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. Specific asset accounts representing wrapped or synthetic assets are excluded to avoid double-counting, including `9g3TTnRqEV1E8saCegiMEXJAVwPzUvYHCMS3SaprcXfC`, `DiFuAd8a8XUmypHkDUXckJHaEPWFtkFLV21CyAiDAH7D`, `G9pWbpbr1ZCtgQtEEq1THL971BUNRRCnX8RFKwXCuXL9`, and others. USD values are aggregated by day, pool account, and product type.
- **Key fields**: `block_date`, `mint`, `token_account`, `post_balance`

### Component D: Price conversion

- **Purpose**: Consistent USD pricing is provided for all assets across both volume and TVL calculations.
- **Logic**: End-of-day asset price feeds filtered for Solana chain assets are utilized. Price data is grouped by day and asset account, with the average price taken when multiple price points exist for the same day. A consistent price basis is ensured for both trading volume and TVL calculations.
- **Key fields**: `timestamp`, `chain`, `token_address`, `price_usd`

### Component E: Final aggregation

- **Purpose**: Trading volume and TVL are combined to calculate the final liquidity turnover ratio.
- **Logic**: Trading volume and TVL are calculated independently and then joined on common dimensions including timestamp, pool account, and product type. Both metrics are aggregated to the daily level before division. All amounts are converted to USD using end-of-day price feeds, with volume generally calculated as the minimum of the two asset amounts in USD to prevent double-counting, except for trades involving exactly one tokenized stock asset, which are valued on the tokenized stock leg. Data is truncated to daily boundaries, with trading volume summed across all trades within each day and TVL representing end-of-day balances forward-filled to handle missing data. Liquidity turnover is computed as daily trading volume divided by daily TVL for each pool and product combination. Missing turnover values are filled with zeros, while a forward-fill strategy is applied to TVL to maintain continuity of balance data between actual balance change events.
- **Key fields**: `timestamp`, `pool_address`, `product_id`, `trading_volume`, `tvl`, `liquidity_turnover`

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

Trading volume divided by total liquidity.

OrcaORCA

Liquidity turnover

Liquidity turnover

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