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 Total value locked Methodology

## 1. Overview

PancakeSwap TVL (Total Value Locked) is measured as the total USD value of assets deposited in PancakeSwap liquidity pools across multiple blockchains. The metric is calculated by aggregating daily asset flows across all PancakeSwap V2 and V3 pools. Cumulative balances are calculated over time and converted to USD using end-of-day price feeds. Actual flows of assets in and out of pools are tracked rather than taking instantaneous snapshots, providing a more accurate representation of user-deposited capital.

## 2. Data sources

- **Blockchain events**: `PairCreated` and `PoolCreated` events from `Factory` contracts, `Sync` and `Swap` events from `Pair` contracts, and `Mint`, `Collect`, `CollectProtocol`, `Swap`, and `Flash` events from `Pool` contracts, plus transaction records, covering Ethereum, BSC, Base, Arbitrum, and 2 other chains
- **External data**: Asset metadata and end-of-day price feeds

## 3. Step-by-step calculation

### Component A: Trading pair identification

- **Purpose**: Establish the universe of PancakeSwap pools to track
- **Logic**: Trading pairs are extracted from Factory creation events. For PancakeSwap V2, `PairCreated` events from `Factory` contracts are parsed to obtain pair addresses and constituent asset addresses. For PancakeSwap V3, `PoolCreated` events from `Factory` contracts are parsed to obtain pool addresses, asset addresses, and fee tiers. These are joined with asset metadata to obtain decimal precision and symbols for proper amount handling.
- **Key fields**: `account_address`, `asset0_address`, `asset1_address`, `fee_tier`, `asset0_decimals`, `asset1_decimals`

### Component B: PancakeSwap V2 asset flows calculation

- **Purpose**: Calculate daily net asset flows for PancakeSwap V2 pools based on reserve changes
- **Logic**: Pool reserves are tracked using `Sync` events from `Pair` contracts, where current reserve amounts for both assets in each pair are emitted. These are aggregated to obtain the last reserve amounts for each pool on each day. Daily asset flow is calculated as the difference between consecutive days' reserve amounts. If no previous day exists, the full reserve amount is used as the flow. Asset amounts are normalized by decimal precision.
- **Key fields**: `reserve0_amount`, `reserve1_amount`, `asset0_amount`, `asset1_amount`

### Component C: PancakeSwap V3 asset flows calculation

- **Purpose**: Calculate daily net asset flows for PancakeSwap V3 pools by tracking all liquidity-affecting events
- **Logic**: Multiple event types that affect pool liquidity are combined. Deposits from `Mint` events are added as positive flow. Withdrawals from `Collect` and `CollectProtocol` events from `Pool` contracts are subtracted as negative flow. Trading activity from `Swap` events is included. Flash loan revenues from `Flash` events are added and multiplied by the pool's fee tier to capture the fee component. All flows are aggregated daily and normalized by decimal precision.
- **Key fields**: `asset0_amount`, `asset1_amount`, `fee_tier`

### Component D: Quality filtering

- **Purpose**: Exclude assets with unreliable price feeds to improve data quality
- **Logic**: Quality filtering is applied to exclude assets with unreliable price support. For all chains except zkSync Era and Robinhood Chain, assets are verified against an allowlist derived from asset metadata. Assets identified as having manipulated prices or lacking active markets are explicitly denylisted. Flow amounts are set to zero for any asset that is not allowlisted or is present on the denylist. ZkSync Era and Robinhood Chain are exempted from this filtering.
- **Key fields**: Asset allowlist and denylist status

### Component E: Asset flow unpivoting and aggregation

- **Purpose**: Reshape and aggregate daily asset flows at the individual asset level
- **Logic**: Daily asset flows from PancakeSwap V2 and PancakeSwap V3 pools are unpivoted from a wide format (containing both constituent assets) to a long format (one row per asset held). These unpivoted flows are aggregated by day, chain, product, pool, and asset address to determine the daily change in TVL.
- **Key fields**: `delta_tvl`, `token_address`

### Component F: Cumulative TVL calculation and balance propagation

- **Purpose**: Calculate the running total of locked assets and handle missing days
- **Logic**: A running sum of daily TVL changes is calculated over time, partitioned by chain, product, and asset address, to determine the cumulative balance of each asset. Missing days for each asset are populated by carrying forward the last known cumulative balance to ensure a continuous daily time series.
- **Key fields**: `tvl`, `timestamp`

### Component G: USD conversion and aggregation

- **Purpose**: Normalize asset balances to USD and aggregate across the protocol
- **Logic**: Cumulative asset balances are converted to USD by multiplying the balances by corresponding end-of-day price feeds. The USD values are then aggregated across all assets, pools, products, and chains to produce the final daily TVL metric. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `tvl`, `timestamp`

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

PancakeSwapCAKE

Total value locked

Total value locked

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