Liquidity providers deposit funds into Pharaoh and stake their LP tokens to receive PHAR tokens in proportion to their share of the votes (token incentives).

Pharaoh is a non-custodial exchange protocol built on Avalanche. Pharaoh was founded in 2023.

PHAR tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue).

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Pharaoh

# Pharaoh Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures trading volume relative to total liquidity on the Pharaoh decentralized exchange. It indicates how efficiently the protocol's liquidity is utilized to facilitate trades across Legacy Pair, Concentrated Liquidity Pool, and Concentrated Liquidity Pool V3 products. This ratio is calculated by dividing the total USD trading volume by the Total Value Locked (TVL) for a given period.

## 2. Data sources

- **Blockchain events**: `Sync` and `Swap` events from `LegacyPair` contracts; `Mint`, `Swap`, `Collect`, and `CollectProtocol` events from `Pool` contracts; and `PoolCreated`, `FeeAdjustment`, `Mint`, `Swap`, and `Collect` events from `RamsesV3Pool` and `RamsesV3Factory` contracts, covering Avalanche
- **External data**: End-of-day price feeds for assets and asset metadata

## 3. Step-by-step calculation

### Component A: Trading volume calculation

- **Purpose**: Capture the total USD value of trades processed by the exchange
- **Logic**: Trade events are parsed from `LegacyPair`, `Pool`, and `RamsesV3Pool` contracts. For V1 Legacy Pairs, the change in token amounts is calculated as the difference between tokens entering and exiting the pool. For V2 and V3 concentrated liquidity pools, token amounts are extracted directly from the swap events. Amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. To mitigate the impact of price manipulation or outliers, the trading volume for each swap is calculated as the minimum USD value between the two tokens involved in the pair.

### Component B: Asset flow and TVL tracking

- **Purpose**: Determine the total value of assets held in the protocol's liquidity pools
- **Logic**: For V1 products, reserve balances are extracted from the most recent `Sync` events for each trading pair. For V2 and V3 products, net deposits are calculated by aggregating liquidity additions from `Mint` events, removals from `Collect` and `CollectProtocol` events, and the net impact of trades from `Swap` events. Cumulative balances are tracked daily for every asset. A continuous price series is maintained for the PHAR asset, accounting for the 5000:1 token split on October 9, 2025, by transitioning between specific asset identifiers in the price feeds. Total TVL is calculated by multiplying the daily cumulative asset balances by their respective end-of-day USD prices.

### Component C: Liquidity turnover ratio

- **Purpose**: Calculate the final efficiency metric as a ratio of volume to liquidity
- **Logic**: The daily aggregated trading volume is divided by the daily total value locked. If the TVL or volume for a specific day is zero, the resulting turnover is handled to avoid division by zero errors. The final values are provided at a daily granularity with UTC day boundaries.

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

Trading volume divided by total liquidity.

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