# PancakeSwap V3 Trade count Methodology

## 1. Overview

Trade count is defined as the number of trades executed on PancakeSwap V3. This metric is used to show how frequently assets are bought or sold through the protocol's decentralized exchange pools. Transaction activity and user engagement are reflected by this metric across all supported networks.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts and `Swap` events from `Pool` contracts, covering Arbitrum, Base, BSC, Ethereum, and zkSync Era
- **External data**: End-of-day price feeds for traded assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Trading pool identification

- **Purpose**: Identify valid PancakeSwap V3 liquidity pools and their associated assets
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to identify active liquidity pools, their associated assets, and fee tiers. Denylisted trading pairs are excluded based on a predefined list of addresses with limited price feed support. Asset metadata is joined to retrieve decimal precision for each asset.
- **Key fields**: `pool`, `token0`, `token1`, `fee`

### Component B: Trade event extraction

- **Purpose**: Capture individual swap transactions executed on PancakeSwap V3
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract trade details. Transactions are joined with native blockchain transaction tables to identify the transaction sender. Swap events originating from denylisted pool addresses are filtered out.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `address`, `sender`, `amount0`, `amount1`

### Component C: Trade count aggregation

- **Purpose**: Calculate the daily number of unique trades
- **Logic**: Trade events are aggregated by day, chain, and product. The number of unique trades is calculated by counting the distinct transaction hashes associated with PancakeSwap V3 swap events. Missing days are zero-filled to ensure a continuous time series, and a chain availability filter is applied to align the data with approved tracking periods.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `transaction_hash`

*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 V3

Trade count

Trade count

Chain breakdown