# Flash loan volume Methodology

## Overview

Flash loan volume measures the total value of assets borrowed and repaid within the same transaction through a DeFi project. Since users pay a fee on each flash loan, this metric tends to correlate with the project's ability to generate fees & revenue from arbitrage-based activity.

## Data sources

- Smart contract events capturing flash loan executions and borrowed amounts
- Factory and pool creation events for trading pair metadata
- Token price feeds for USD conversion
- Token metadata for decimal precision

## Common calculation approaches

### Liquidity pool and vault event extraction
Flash loan activity is aggregated from dedicated events emitted by liquidity pools or central vault contracts. For example, `Flash` events are captured from Uniswap V3 and SushiSwap V3 pools, while `FlashLoan` events are extracted from the Balancer V2 Vault. These logs provide the raw amounts for each token borrowed, which are then normalized by decimal precision.

### Multi-token volume aggregation
In decentralized exchange architectures, volume is often derived by summing the USD value of all tokens involved in a single flash loan transaction. For projects including PancakeSwap V3 and QuickSwap, the amounts for both tokens in a trading pair are aggregated and converted to USD using end-of-day prices to determine the total economic value of the loan.

### Protocol fee and configuration tracking
To accurately reflect the economic impact of flash loans, volume data is often synchronized with protocol fee configurations. For instance, `FlashLoanFeePercentageChanged` events are tracked from Balancer V2 and Beets contracts to monitor the fee tiers applied to borrowing activity, ensuring the volume aligns with the protocol's revenue-generating parameters.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

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

Total value of assets borrowed and repaid within the same transaction.

Flash loan volume

Exchanges (DEX)

Liquidity providers deposit funds into QuickSwap and receive trading fees from traders (supply-side fees).

QuickSwap is a non-custodial exchange protocol built on Polygon. QuickSwap was founded by Nick Mudge & Sameep Singhania and launched in 2020.

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

QuickSwap V3

Flash loan volume

Flash loan volume

Chain breakdown