# Orca Token Swap V2 Revenue Methodology

## 1. Overview

Revenue measures the portion of trading fees that Orca Token Swap V2 retains, as determined by its protocol take rate. These fees are collected from swap transactions executed on the Orca Token Swap V2 program on Solana. The remaining fees are distributed to supply-side participants, specifically liquidity providers. Earnings generated by the protocol before operating expenses and asset incentives are captured by this metric.

## 2. Data sources

- **Blockchain instructions**: `Initialize` instructions from `TokenSwapV2` programs and swap transactions executed on the Orca Token Swap V2 program, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pool metadata and fee rate extraction

- **Purpose**: Identify active liquidity pools and extract their respective fee structures
- **Logic**: `Initialize` instructions from `TokenSwapV2` programs are parsed to identify swap accounts, vault accounts, and associated assets. The liquidity provider fee rate and protocol fee rate are calculated by dividing the respective numerators by their denominators. The total trade fee rate is defined as the sum of the liquidity provider fee rate and the protocol fee rate, while the protocol fee share is calculated as the protocol fee rate divided by the total trade fee rate.
- **Key fields**: `pool_address`, `trade_fee_numerator`, `trade_fee_denominator`, `owner_trade_fee_numerator`, `owner_trade_fee_denominator`

### Component B: Trade volume aggregation

- **Purpose**: Capture and aggregate swap transaction volumes for Orca Token Swap V2
- **Logic**: Swap transactions executed on the Orca Token Swap V2 program are identified using the program account `9W959DqEETiGZocYWCQPaJ6sBmUzgfxXfqGeTEdp3aQP`. Raw asset amounts are normalized by decimal precision using asset metadata. Transactions are mapped to their corresponding pools by matching vault accounts, and the swap volumes for both assets are aggregated daily.
- **Key fields**: `pool_address`, `amount_0`, `amount_1`, `token_address_0`, `token_address_1`

### Component C: USD valuation and revenue calculation

- **Purpose**: Convert trading volumes to USD and calculate the protocol revenue
- **Logic**: Aggregated asset volumes are converted to USD using end-of-day price feeds. To prevent valuation distortions from illiquid assets, the trading volume of a swap is determined by taking the lesser USD value of the two swap legs, except for swaps involving exactly one tokenized stock asset, which are valued using the tokenized stock leg. Daily protocol revenue is calculated by multiplying the USD trading volume by the total trade fee rate and the protocol fee share, then summing these values across all pools.
- **Key fields**: `trading_volume`, `trade_fee_rate`, `protocol_fee_share`, `revenue`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

Exchanges (DEX)

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.