# Pendle Limit Order Notional trading volume Methodology

## 1. Overview

Notional trading volume is defined as the total value of derivative contracts executed on Pendle Limit Order. The total size of limit order trades filled on the platform is represented by this metric, which is correlated with the protocol's activity and its capacity to generate fees. The metric is calculated by extracting the notional volume from trade events, adjusting for asset-specific exchange rates and decimal precisions, and converting the final values to USD.

## 2. Data sources

- **Blockchain events**: `OrderFilledV2` events from `LimitRouter` contracts, covering Ethereum, Arbitrum, Base, BNB Chain, and 8 other chains
- **External data**: End-of-day price feeds for underlying assets, asset metadata, and on-chain state reads for Standardized Yield (SY) asset exchange rates

## 3. Step-by-step calculation

### Component A: Trade event extraction and initial scaling

- **Purpose**: Raw trade volumes are captured from limit order events and initial asset-specific scaling is applied.
- **Logic**: `OrderFilledV2` events are parsed from `LimitRouter` contracts. The raw trade volume is extracted from the `notionalVolume` field. For specific yield-bearing BTC assets on Berachain and Base, the raw volume is divided by ten billion, and for specific assets on Monad, it is divided by one trillion to align with the standard decimal representation. For all other assets, the raw volume is used directly.
- **Key fields**: `notionalVolume`, `YT` (Yield Token address), `address` (contract address)

### Component B: Exchange rate adjustment and scale correction

- **Purpose**: The trade volume is adjusted using the daily exchange rate of the corresponding Standardized Yield (SY) asset.
- **Logic**: The Yield Token (YT) address from the trade event is mapped to its corresponding Principal Token (PT) and Standardized Yield (SY) addresses. The daily exchange rate for the SY asset is retrieved from on-chain state reads, which are carried forward from the last available reading to ensure continuity. The trade volume is multiplied by this exchange rate to calculate the adjusted notional volume. For the hBTC SY asset on Base, an additional scale correction is applied by dividing the volume by ten billion to correct for decimal discrepancies between the SY shares and the priced proxy asset.
- **Key fields**: `pt_address`, `sy_address`, `rate` (SY exchange rate)

### Component C: Decimal normalization and USD conversion

- **Purpose**: The adjusted volume is normalized by the underlying asset's decimal precision and converted to USD.
- **Logic**: The underlying asset address and its decimal precision are identified using the asset mapping. The adjusted notional volume is normalized by dividing it by the decimal precision of the underlying asset. The normalized volume is then multiplied by the end-of-day USD price of the underlying asset to obtain the final USD-denominated notional trading volume. Daily values are aggregated with UTC day boundaries.
- **Key fields**: `underlying_address`, `decimals`, `price_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).

Pendle Limit Order

Notional trading volume

Notional trading volume

Chain breakdown