# Orca Token Swap V2 Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed on a decentralized spot exchange. For Orca Token Swap V2, the total value of assets swapped through the program is measured. Economic activity executed within legacy liquidity pools on the Solana blockchain is tracked. This metric is utilized as a primary indicator of protocol utility and its capacity to generate fees for both liquidity providers and the protocol treasury.

## 2. Data sources

- **Blockchain events**: `Initialize` instructions from `TokenSwapV2` programs and parsed trade activity from the `Orca Token Swap V2` program (`9W959DqEETiGZocYWCQPaJ6sBmUzgfxXfqGeTEdp3aQP`), covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trade identification and extraction

- **Purpose**: Identify and extract swap activity associated with Orca Token Swap V2 liquidity pools
- **Logic**: Transactions are filtered by the program account `9W959DqEETiGZocYWCQPaJ6sBmUzgfxXfqGeTEdp3aQP`. Base and quote asset amounts are extracted for every trade executed within these pools. These raw amounts are normalized by decimal precision using asset metadata to reflect the actual quantity of assets moved.
- **Key fields**: `base_amount`, `quote_amount`, `pool_address`, `base_mint_address`, `quote_mint_address`

### Component B: Pool metadata and fee configuration mapping

- **Purpose**: Associate individual trades with specific pool parameters and fee structures
- **Logic**: `Initialize` instructions from `TokenSwapV2` programs are parsed to identify valid pool accounts and their corresponding token vault accounts. This metadata is used to correctly identify the direction of trades (A to B) and the tokens involved. Fee rates for each pool are determined by calculating the ratio between the trade fee and owner trade fee numerators and denominators defined at pool creation.
- **Key fields**: `tokenSwapAccount`, `tradeFeeNumerator`, `tradeFeeDenominator`, `ownerTradeFeeNumerator`, `ownerTradeFeeDenominator`

### Component C: USD conversion and final aggregation

- **Purpose**: Normalize trading activity to USD for cross-asset comparison and aggregate values
- **Logic**: Normalized asset amounts are multiplied by end-of-day price feeds for the respective assets. To ensure accuracy and prevent double-counting of a single swap, the lower USD value of the two assets involved in the trade is selected as the canonical trading volume. An exception is applied to trades containing exactly one tokenized stock asset, which are valued solely on the tokenized stock leg to prevent valuation errors from unpriced counterparties. These values are then aggregated to a daily granularity using UTC day boundaries.
- **Key fields**: `price_usd`, `block_timestamp`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume

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.