# PancakeSwap V3 Revenue Methodology

## 1. Overview

Revenue is defined as the portion of swap fees that is retained by PancakeSwap V3, as determined by the protocol's take rate. These fees are collected directly from trades executed on the platform's automated market maker (AMM) pools. While the majority of trading fees is distributed to liquidity providers as supply-side fees, a portion is designated as protocol fees and retained by the protocol. The USD value of these protocol fees is represented by this metric before any operating expenses or token incentives are deducted.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts and `Swap` events from `Pool` contracts, combined with native transaction metadata, covering Arbitrum, Base, BNB Chain, Ethereum, and zkSync Era
- **External data**: End-of-day price feeds for traded assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: PancakeSwap V3 trading pool and fee tier identification

- **Purpose**: Active PancakeSwap V3 liquidity pools, their associated assets, and fee tiers are identified.
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to extract pool addresses, asset addresses, and fee tiers. Asset metadata is joined to retrieve decimal precision and symbols for each asset. Pools that are denylisted due to limited price feed support for low-liquidity assets are excluded from the dataset.
- **Key fields**: `pool` (pool address), `token0` (first asset address), `token1` (second asset address), `fee` (fee tier)

### Component B: PancakeSwap V3 trade and protocol fee extraction

- **Purpose**: Individual swap transactions and the associated protocol fees are captured.
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract the trade amounts and protocol fees collected for both assets in the pool. The transaction sender is identified by joining the swap events with native transaction tables. Denylisted pool addresses are filtered out at this stage to ensure data integrity.
- **Key fields**: `amount0` (first asset trade amount), `amount1` (second asset trade amount), `protocolFeesToken0` (protocol fees for the first asset), `protocolFeesToken1` (protocol fees for the second asset), `sender` (contract user address), `transaction_hash` (transaction identifier)

### Component C: PancakeSwap V3 decimal normalization and USD conversion

- **Purpose**: Protocol fee amounts are normalized by decimal precision and converted to USD.
- **Logic**: Protocol fee amounts for both assets are divided by their respective decimal precision to obtain normalized values. These normalized amounts are then multiplied by the corresponding end-of-day asset prices. The total revenue for each swap is calculated as the sum of the USD-denominated protocol fees from both assets.
- **Key fields**: `protocolFeesToken0` (raw protocol fees for the first asset), `protocolFeesToken1` (raw protocol fees for the second asset), `price_usd` (end-of-day asset price)

### Component D: PancakeSwap V3 aggregation and finalization

- **Purpose**: Daily revenue is aggregated and final filters are applied.
- **Logic**: The USD-denominated revenue is aggregated on a daily basis per chain and product. Missing days are zero-filled to ensure a continuous time series. Chain availability filters are applied to align the data with approved tracking periods.
- **Key fields**: `timestamp` (daily boundary), `revenue` (aggregated daily USD 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 V3

Revenue

Revenue

Chain breakdown