# PancakeSwap V2 Revenue Methodology

## 1. Overview

Revenue is defined as the portion of trading fees retained by PancakeSwap V2, as determined by the protocol take rate. For PancakeSwap V2, a protocol fee of 0.08% is applied to the total trading volume. These earnings are calculated and aggregated before operating expenses and token incentives are deducted. The remaining portion of the trading fees is distributed to liquidity providers as supply-side fees.

## 2. Data sources

- **Blockchain events**: `PairCreated` events from `Factory` contracts and `Swap` events from `Pair` contracts, combined with transaction data, covering Arbitrum, Base, BNB Chain, Ethereum, and zkSync Era
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trading pair discovery and filtering

- **Purpose**: Identify active PancakeSwap V2 liquidity pools and filter out denylisted pairs.
- **Logic**: `PairCreated` events from `Factory` contracts are parsed to identify the pool address, asset0 address, and asset1 address for each trading pair. Specific trading pairs are excluded based on a denylist of addresses with limited price feed support for low-liquidity assets. Asset metadata is joined to retrieve decimal precision and symbols for both assets in each pair.
- **Key fields**: `account_address` (pool address), `token0_address` (asset0 address), `token1_address` (asset1 address), `token0_decimals` (asset0 decimals), `token1_decimals` (asset1 decimals)

### Component B: Trade extraction and volume calculation

- **Purpose**: Extract swap transactions and calculate the raw trading volume.
- **Logic**: `Swap` events from `Pair` contracts are parsed to extract the swap amounts for both assets. The net change for each asset is calculated by subtracting the outgoing amount from the incoming amount. These raw amounts are normalized by their respective decimal precision. Daily trading volume in USD is calculated by multiplying the normalized asset amounts by their end-of-day prices, using the lesser USD value between the two assets to mitigate price manipulation.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `price_usd`

### Component C: Protocol revenue calculation and aggregation

- **Purpose**: Apply the protocol take rate to calculate and aggregate daily revenue.
- **Logic**: Daily USD trading volume is multiplied by the PancakeSwap V2 protocol fee tier of 0.08% to determine the protocol revenue. The calculated revenue is aggregated by day, chain, and product. Missing days are zero-filled, and a chain availability filter is applied to align the data with approved chain timelines.
- **Key fields**: `trading_volume`, `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)

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).

PancakeSwap V2

Revenue

Revenue

Chain breakdown