# PancakeSwap V2 Trade count Methodology

## 1. Overview

The number of trades executed on PancakeSwap V2 is measured by the trade count metric. How frequently assets are bought or sold through the decentralized exchange is indicated by this metric. User activity, platform engagement, and liquidity pool utilization are represented by these measurements. Only successful swap transactions executed on PancakeSwap V2 liquidity pools are included in the final calculation.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pair` contracts and `PairCreated` events from `Factory` contracts, covering Arbitrum, Base, BNB Chain, Ethereum, and zkSync Era

## 3. Step-by-step calculation

### Component A: Trading pair identification and filtering

- **Purpose**: Identify valid PancakeSwap V2 liquidity pools and exclude denylisted pairs
- **Logic**: `PairCreated` events from `Factory` contracts are parsed to identify active liquidity pools along with their associated assets. Denylisted trading pairs, which are identified due to limited price feed support or low liquidity, are excluded from the active pool list.
- **Key fields**: `pair` (pool address), `token0` (first asset address), `token1` (second asset address)

### Component B: Trade event extraction

- **Purpose**: Extract individual swap transactions from active PancakeSwap V2 pools
- **Logic**: `Swap` events from `Pair` contracts are parsed for all non-denylisted pools. For each swap, the transaction hash, block timestamp, pool address, and sender address are extracted. The transaction details are joined with native transaction data on each respective chain to identify the originating user address.
- **Key fields**: `transaction_hash`, `block_timestamp`, `sender` (contract user address), `from` (originating user address)

### Component C: Trade count aggregation

- **Purpose**: Aggregate the daily number of unique trades
- **Logic**: The extracted trade events are aggregated by day, chain, and product. The trade count is calculated by taking the count of distinct transaction hashes for each day. Missing days are zero-filled to ensure a continuous time series, and chain availability filters are applied to align the data with supported timeframes.
- **Key fields**: `transaction_hash`, `block_timestamp`, `chain_id`

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

Number of trades executed on a decentralized exchange.

Trade count

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

Trade count

Trade count

Chain breakdown