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Derivative exchanges

Photon

# Photon Trading volume Methodology

## 1. Overview

Photon trading volume measures the total USD value of trades executed through the Photon DEX aggregator on Solana. This metric captures the daily trading activity by identifying transactions that paid fees to Photon's fee collection account and calculating the USD value of the associated trades. The calculation implements anti-wash trading mechanisms by using conservative volume estimates when both token prices are available.

## 2. Data sources

The calculation relies on three primary raw data sources:

- **Solana native token transfers**: Records of SOL transfers to identify fee payments to Photon's fee collection account
- **Solana DEX trades**: Comprehensive trade data from all decentralized exchanges on Solana, including token pairs, amounts, and transaction identifiers
- **End-of-day price feeds**: Daily token price data for Solana tokens, providing USD conversion rates

## 3. Step-by-step calculation

### Component A: Fee transaction identification
- **Purpose**: Identifies transactions that paid fees to Photon, establishing which trades were routed through their aggregator
- **Logic**: Filters Solana native token transfers to find payments made to Photon's fee collection account address `AVUCZyuT35YSuj4RH7fwiyPu82Djn2Hfg7y2ND2XcnZH`. The native token used for fees is wrapped SOL with address `So11111111111111111111111111111111111111112`. Each fee payment transaction ID is captured along with the timestamp, signer, and fee amount.
- **Key fields**: `transaction_id` for matching trades, `block_timestamp` for timing, `signer` for user identification, and `amount` for fee value

### Component B: Trade data extraction
- **Purpose**: Extracts trade details for transactions identified as Photon-routed
- **Logic**: Joins the fee transaction IDs with comprehensive Solana DEX trade data to isolate only trades that were routed through Photon. For each matching transaction, extracts the base and quote token addresses (`base_mint` and `quote_mint`), along with the absolute values of amounts traded for both tokens (`base_amount` and `quote_amount`). The signer information links trades to specific users.
- **Key fields**: `token_0_address` and `token_1_address` for traded token pairs, `amount_0` and `amount_1` for trade volumes, `signer` for user tracking

### Component C: Price data preparation
- **Purpose**: Provides USD conversion rates for all tokens involved in trades
- **Logic**: Aggregates end-of-day price feeds into daily averages for all Solana tokens, creating a lookup table with daily USD prices. Prices are grouped by day-truncated timestamps, chain, and token address to provide consistent daily rates.
- **Key fields**: `timestamp` for daily boundaries, `token_address` for price lookups, `price_usd` for conversion rates

### Component D: USD value calculation with anti-wash trading
- **Purpose**: Converts trade amounts to USD values while implementing anti-wash trading mechanisms
- **Logic**: Joins trade data with price feeds for both tokens in each pair (token_0 and token_1). For each trade, calculates potential USD values for both sides by multiplying token amounts by their respective prices. When both token prices are available, applies anti-wash trading logic by taking the minimum of the two calculated USD values, which provides a conservative estimate and reduces artificial volume inflation. When only one price is available, uses that single calculation. This approach ensures wash trading cannot inflate volumes by using inflated prices on one side of the trade.
- **Key fields**: `trading_volume` representing the final USD value per trade after anti-wash trading adjustments

### Final aggregation
- **Combining components**: All individual trade volumes are summed by day to create daily totals for the Photon protocol
- **Currency conversion**: USD conversion occurs at the individual trade level using end-of-day price feeds, ensuring consistent daily rates across all calculations
- **Time aggregation**: Trades are aggregated using day-truncated timestamps, grouping all trades within each 24-hour period
- **Final calculation**: The daily trading volume equals the sum of all anti-wash-trading-adjusted USD trade values for transactions that paid fees to Photon's fee collection account. The finalization process applies zero-filling for any missing days to maintain a continuous time series.

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

Total value of spot trades executed on the exchange.

Photon

Trading volume

Trading volume

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