# Whirlpools Trading volume Methodology

## 1. Overview

Trading volume is defined as the total value of trades executed on a decentralized spot exchange. For Whirlpools, this is calculated as the total USD value of assets swapped through concentrated liquidity pools. Since trading fees are required to be paid on these executions, this metric is utilized as a primary indicator of the protocol's ability to generate fees for liquidity providers and revenue for the protocol treasury.

## 2. Data sources

- **Blockchain events**: Swap instructions and `Traded` events are parsed from Whirlpools programs, and pool initialization and fee configuration instructions including `InitializePool`, `InitializePoolV2`, `InitializePoolWithAdaptiveFee`, `SetFeeRate`, `SetProtocolFeeRate`, `InitializeConfig`, `SetDefaultProtocolFeeRate`, `InitializeFeeTier`, `SetDefaultFeeRate`, `InitializeAdaptiveFeeTier`, and `SetDefaultBaseFeeRate` are extracted, covering Solana
- **External data**: End-of-day price feeds and asset metadata are utilized

## 3. Step-by-step calculation

### Component A: Whirlpools trade identification

- **Purpose**: All swap activity routed through concentrated liquidity pools is captured.
- **Logic**: Transactions are filtered for interactions with the Whirlpools program account. Swap instructions are parsed to identify the pool account, the specific assets involved in the trade, and the raw quantities transferred for both legs of the swap.
- **Key fields**: `amount_0`, `amount_1`, `token_0_address`, `token_1_address`, `pool_address`

### Component B: Asset normalization

- **Purpose**: Raw on-chain values are adjusted into human-readable units.
- **Logic**: Raw asset amounts are normalized by the decimal precision associated with their respective mint accounts. This is performed to ensure that trades involving assets with different decimal configurations are correctly accounted for and comparable.

### Component C: USD valuation

- **Purpose**: Trading activity is standardized into a common currency for cross-asset aggregation.
- **Logic**: Normalized amounts for both assets in a trade are multiplied by their respective end-of-day USD prices. For most trades, the trading volume is defined as the lower USD value of the two legs to mitigate the impact of price volatility or liquidity imbalances. However, if exactly one leg of the trade involves a tokenized stock asset, the trading volume is valued solely on that tokenized stock asset leg to ensure accurate pricing from the issuer's reference equity.

### Component D: Final aggregation and filtering

- **Purpose**: Trade data is consolidated into a standardized time-series format.
- **Logic**: Individual trade values are summed by pool, asset, and product. Results are aggregated at a daily granularity using UTC day boundaries. Zero-filling logic is applied to assign zeros to days where no trading activity is detected. Final values are filtered based on chain-specific data availability and freshness.

*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.