# Boros Notional trading volume Methodology

## 1. Overview

Notional trading volume is defined as the total value of derivative contracts executed on Boros, a product within the Pendle protocol. The total size of interest rate derivative positions traded, settled, or liquidated through the platform is represented by this metric. Since trading fees are paid on each transaction, notional trading volume is utilized as a key indicator of the protocol's capacity to generate fees and revenue. Boros volume is aggregated across distinct transaction types, including market orders, over-the-counter (OTC) swaps, and liquidations.

## 2. Data sources

- **Blockchain events**: `MarketCreated` events from `BorosMarketFactory` contracts, `TokenAdded` events from `BorosMarketHubEntry` contracts, and `MarketOrdersFilled`, `OtcSwap`, and `Liquidate` events from `BorosMarket` contracts, covering Arbitrum
- **External data**: End-of-day price feeds for the underlying assets

## 3. Step-by-step calculation

### Component A: Boros market mapping

- **Purpose**: Map Boros market contracts to their corresponding underlying assets
- **Logic**: Market addresses and their associated asset identifiers are identified using `MarketCreated` events from `BorosMarketFactory` contracts. These asset identifiers are then matched with asset addresses using `TokenAdded` events from `BorosMarketHubEntry` contracts to establish a mapping between each market and its underlying asset.
- **Key fields**: `market_address`, `asset_address`, `chain`

### Component B: Market order volume extraction

- **Purpose**: Capture trading volume from filled market orders
- **Logic**: `MarketOrdersFilled` events from `BorosMarket` contracts are parsed. The packed trade size is extracted from the upper 128 bits of the `totalTrade` field using a custom bit-shifting and two's complement conversion function to determine the absolute raw volume amount.
- **Key fields**: `volume_amount`, `asset_address`, `transaction_hash`

### Component C: Over-the-counter swap volume extraction

- **Purpose**: Capture trading volume from over-the-counter (OTC) swaps
- **Logic**: `OtcSwap` events from `BorosMarket` contracts are parsed. The packed trade size is extracted from the upper 128 bits of the `trade` field using a custom bit-shifting and two's complement conversion function to determine the absolute raw volume amount. Specific transaction hashes associated with configuration updates are explicitly excluded to prevent data distortion.
- **Key fields**: `volume_amount`, `asset_address`, `transaction_hash`

### Component D: Liquidation volume extraction

- **Purpose**: Capture trading volume from market liquidations
- **Logic**: `Liquidate` events from `BorosMarket` contracts are parsed. The packed trade size is extracted from the upper 128 bits of the `liqTrade` field using a custom bit-shifting and two's complement conversion function to determine the absolute raw volume amount.
- **Key fields**: `volume_amount`, `asset_address`, `transaction_hash`

### Component E: Normalization and USD conversion

- **Purpose**: Normalize volume amounts and convert them to USD
- **Logic**: Raw volume amounts from market orders, OTC swaps, and liquidations are aggregated. The volume amounts are normalized by decimal precision and multiplied by end-of-day asset prices to calculate the daily notional trading volume in USD.

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

Total USD value of derivative contracts executed on the protocol.

Notional trading volume

Exchanges (DEX)

Users deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

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

Boros

Notional trading volume

Notional trading volume

Chain breakdown