# Project X Trading volume Methodology

## 1. Overview

Trading volume is defined as the total USD value of swaps executed across the concentrated-liquidity pools of Project X. This metric is utilized as a key indicator of the protocol's liquidity, market share, and capacity to generate trading fees for liquidity providers. Each swap is valued using the lesser of its two transaction legs to prevent distortions from unpriced or illiquid assets.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts and `Swap` events from `Pool` contracts, covering HyperEVM
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pool registry and fee tier extraction

- **Purpose**: To identify all active trading pools and their associated fee tiers
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to identify the pool address, the addresses of the two assets in the pair, and the raw fee tier. The fee tier is normalized by dividing the raw fee value by one million. Asset decimals and symbols are joined from asset metadata to establish the baseline pool configuration.
- **Key fields**: `account_address`, `token0_address`, `token1_address`, `fee_tier`

### Component B: Swap event extraction

- **Purpose**: To capture individual swap transactions executed on the exchange
- **Logic**: `Swap` events from `Pool` contracts are parsed and joined with transaction data. Transactions occurring before July 8, 2025, are excluded. For each swap, the raw signed asset amounts representing the change in pool reserves are extracted.
- **Key fields**: `transaction_hash`, `account_address`, `token0_amount`, `token1_amount`

### Component C: Volume normalization and USD conversion

- **Purpose**: To normalize asset amounts and convert swap values to USD
- **Logic**: Raw swap amounts are normalized by the decimal precision of their respective assets. The normalized amounts are multiplied by end-of-day price feeds to determine the USD value of each leg. To prevent valuation errors from unpriced assets, the total swap volume is calculated as the lesser of the USD values of the two legs.
- **Key fields**: `amount_0`, `amount_1`, `price_usd`

### Component D: Aggregation and pair formatting

- **Purpose**: To aggregate trading volume and format trading pair metadata
- **Logic**: Swaps are aggregated to a daily granularity. Trading pairs are formatted into a standardized display order where stablecoin assets are positioned second, or otherwise sorted alphabetically. Daily volumes are aggregated by pool, chain, and product, with zero-filling applied to ensure continuous daily time series.
- **Key fields**: `timestamp`, `trading_pair_id`, `trading_pair_name`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)