Liquidity providers deposit funds into Pangolin and receive trading fees from traders (supply-side fees).

Pangolin is a non-custodial exchange protocol built on Avalanche (originally a fork of Uniswap). Pangolin was founded by an anonymous team and launched in 2020.

PNG tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Exchanges (DEX)

Pangolin

# Pangolin Revenue Methodology

## 1. Overview

Pangolin revenue represents the protocol's share of trading fees generated on the Pangolin V1 decentralized exchange on Avalanche. The metric calculates protocol revenue by taking one-sixth (approximately 16.67%) of all trading fees collected from swaps. This reflects Pangolin's revenue model where the protocol retains a portion of the 0.3% trading fees charged to users, with the remainder going to liquidity providers.

## 2. Data sources

- **Pangolin V1 Factory events**: Parsed `PairCreated` events from the Pangolin V1 Factory contract on Avalanche containing token pair addresses and creation details
- **Pangolin V1 Pair events**: Parsed `Swap` events from Pangolin V1 trading pair contracts on Avalanche containing trade amounts and directions
- **Avalanche transaction data**: Transaction records providing user addresses and transaction metadata for swap events  
- **Token metadata**: Token information including decimal places and symbols for proper amount normalization and pair identification
- **End-of-day price feeds**: Daily USD price data for tokens traded on Pangolin pairs

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identifies all valid Pangolin V1 trading pairs and their characteristics
- **Logic**: Extracts trading pair information from Pangolin V1 Factory `PairCreated` events on Avalanche. Each event provides the pair contract address along with the two token addresses (`token0` and `token1`) that form the trading pair. All V1 pairs are assigned a fixed fee tier of 0.3% (0.003). Token metadata is joined to get decimal places for each token and create human-readable pair names by combining token symbols.
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `fee_tier` (0.003), `account_name` (token symbol combination)

### Component B: Trade extraction and processing  
- **Purpose**: Captures individual swap transactions and calculates token amount changes
- **Logic**: Processes `Swap` events from Pangolin V1 pair contracts to identify trading activity. Each swap event contains `amount0In`, `amount0Out`, `amount1In`, and `amount1Out` values representing token flows. The net change for each token is calculated as the difference between input and output amounts (amountIn - amountOut). Transaction data is joined to obtain the originating user address for each swap. Only swaps from February 8, 2021 onwards are included.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address` (pair contract), `user_address`, `token0_amount` (net change), `token1_amount` (net change)

### Component C: Volume calculation and USD conversion
- **Purpose**: Aggregates trading volumes and converts to USD values with manipulation protection
- **Logic**: Daily aggregation of swap amounts by summing absolute values of token changes and normalizing using token decimal places (dividing by 10^decimals). Trading data is joined with pair information to get token addresses and decimals. USD conversion is performed using end-of-day price feeds for both tokens in each pair. To prevent price manipulation, the final volume uses the lesser of the two USD amounts (minimum of token0 USD value and token1 USD value) for each trade.
- **Key fields**: `timestamp` (daily), `trading_volume` (USD), `token0_amount` (normalized), `token1_amount` (normalized), `fee_tier`

### Component D: Fee calculation
- **Purpose**: Calculates total trading fees generated from volume and fee rates
- **Logic**: Multiplies daily trading volume by the fee tier (0.3%) to determine total fees collected. Volumes are aggregated by day, chain, market sector, business segment, and product. The fee calculation applies the fixed 0.3% rate uniformly across all Pangolin V1 pairs.
- **Key fields**: `trading_volume`, `fee_tier` (0.003), `fees` (volume × fee_tier)

### Final aggregation
- **Combining components**: Fee data flows directly into revenue calculation without additional joining
- **Currency conversion**: All amounts are already converted to USD during the volume calculation step using end-of-day price feeds
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: Protocol revenue is calculated by multiplying total fees by the protocol fee share of one-sixth (1/6 ≈ 0.1667). This reflects Pangolin's revenue model where the protocol retains approximately 16.67% of trading fees, with the remainder distributed to liquidity providers.

*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.

PangolinPNG

Revenue

Revenue

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