Liquidity providers deposit funds into PancakeSwap and receive trading fees from traders (supply-side fees).

PancakeSwap is a non-custodial exchange protocol built on Binance Smart Chain and other blockchains (originally a fork of Uniswap). PancakeSwap was founded by an anonymous team and launched in 2020.

CAKE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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PancakeSwap

# PancakeSwap Fees Methodology

## 1. Overview

Fees measures the total value users pay to use PancakeSwap's decentralized exchange application. Fees generated from trading (swap transactions) and flash loans are captured across all supported versions of the protocol. Total fees are calculated by multiplying trading volumes and flash loan volumes by their respective pool fee tiers. This metric is used to assess the overall economic value generated by the protocol's core exchange and borrowing activities.

## 2. Data sources

- **Blockchain events**: `PairCreated` and `PoolCreated` events from `Factory` contracts, `Swap` events from `Pair` and `Pool` contracts, and `Flash` events from `Pool` contracts, covering Ethereum, BSC, Arbitrum, Base, and 2 other chains
- **Asset metadata**: Asset contract information including decimal precision and symbols
- **External data**: End-of-day price feeds for traded assets
- **Denylist data**: Manually maintained list of low-liquidity trading pairs with poor price feed support

## 3. Step-by-step calculation

### Component A: Trading pair identification and fee tier mapping

- **Purpose**: The universe of valid trading pairs and their associated fee structures across PancakeSwap V2 and V3 is established.
- **Logic**: Factory creation events are processed to identify all trading pairs created on PancakeSwap. For PancakeSwap V2, `pair` addresses are extracted from `PairCreated` events from `Factory` contracts, and a fixed fee tier of 0.25% (calculated by dividing the basis points by one million) is assigned. For PancakeSwap V3, `pool` addresses are extracted from `PoolCreated` events from `Factory` contracts, and the variable fee tier specified in each pool creation is captured. Asset metadata is joined to obtain decimal precision for `token0` and `token1`, and display names are created by concatenating asset symbols. Trading pairs listed in the denylist are excluded due to insufficient price feed coverage for low-liquidity assets.
- **Key fields**: `account_address`, `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `fee_tier`, `account_name`, `chain`, `version`

### Component B: Trading volume calculation

- **Purpose**: Daily trading volumes for each trading pair are calculated in USD terms to enable the computation of trading fees.
- **Logic**: Swap events from both PancakeSwap V2 and V3 contracts are processed. For PancakeSwap V2, net asset amounts are calculated from `Swap` events from `Pair` contracts by subtracting outgoing asset amounts from incoming asset amounts. For PancakeSwap V3, asset amounts are extracted directly from `Swap` events from `Pool` contracts. Absolute values are applied to handle directional differences, and amounts are normalized by decimal precision. End-of-day price feeds are joined to convert asset amounts to USD values. The lesser of the two asset USD values (the minimum of the `token0` USD value and `token1` USD value) is used as the final trading volume to prevent price manipulation attacks. Data is aggregated daily, and transactions involving denylisted trading pairs are excluded.
- **Key fields**: `trading_volume`, `timestamp`, `account_address`, `fee_tier`

### Component C: Flash loan volume calculation

- **Purpose**: Daily flash loan volumes for PancakeSwap V3 pools are calculated in USD terms to enable the computation of flash loan fees.
- **Logic**: `Flash` events from PancakeSwap V3 `Pool` contracts are processed across all supported chains. The `amount0` and `amount1` values, representing the flash loan amounts for both assets in the pool, are extracted. Amounts are normalized by decimal precision. End-of-day price feeds are joined to convert both asset amounts to USD values. The USD values of both assets are summed to capture the total flash loan volume. Data is aggregated daily, and flash loans from denylisted trading pairs are excluded.
- **Key fields**: `flash_loan_volume`, `timestamp`, `account_address`, `fee_tier`

### Component D: Fee calculation and aggregation

- **Purpose**: Trading and flash loan fee components are combined to calculate total daily fees in USD.
- **Logic**: Trading fees are calculated by multiplying each trading pair's daily trading volume by its fee tier. Flash loan fees are calculated by multiplying each pool's daily flash loan volume by its fee tier. Both fee streams are combined to create a comprehensive fees dataset. All volumes are converted to USD using end-of-day price feeds matched by timestamp, asset address, and chain prior to fee calculations. Data is aggregated at daily boundaries using timestamp truncation. Total fees are calculated as the sum of trading fees and flash loan fees across all trading pairs and pools. Final processing is applied to perform zero-filling for missing dates, standardize business dimensions, and filter by chain availability.

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

Total value users pay to use a protocol (gross fees, user-paid fees).

PancakeSwapCAKE

Fees

Fees

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