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).

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QuickSwap

# QuickSwap Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the portion of total trading and flash loan fees generated by QuickSwap that is distributed to liquidity providers. This metric represents the primary incentive for users to provide capital to the protocol's automated market maker (AMM) pools across QuickSwap V2 and QuickSwap V3. These fees are collected in the underlying assets of each trading pair and are converted to USD to provide a standardized view of liquidity provider earnings.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pair` contracts, `Swap`, `Flash`, `Fee`, and `CommunityFee` events from `Pool` contracts, and `PairCreated`, `PoolCreated`, and `Pool_Fee` events from `Factory` and `Pool` contracts, covering Polygon, Base, and Manta
- **External data**: End-of-day price feeds for assets and metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Trading and flash loan volume tracking

- **Purpose**: Capture the gross economic activity subject to fee collection across all QuickSwap products.
- **Logic**: `Swap` and `Flash` events are parsed from `Pair` and `Pool` contracts. For QuickSwap V2, the net change in token balances is calculated by subtracting outgoing amounts from incoming amounts for both assets in a pair. For QuickSwap V3, raw amounts are extracted directly from the event parameters. Trading pairs are identified and mapped to specific versions and products using `PairCreated` and `PoolCreated` events from `Factory` contracts. Transactions involving denylisted trading pairs with insufficient liquidity or unreliable price data are excluded.
- **Key fields**: `amount0`, `amount1`, `amount0In`, `amount0Out`, `amount1In`, `amount1Out`

### Component B: Fee tier and protocol share determination

- **Purpose**: Identify the specific fee percentages applicable to each transaction and the portion reserved for the protocol treasury.
- **Logic**: Fee tiers are assigned based on the product version and specific pool configurations. QuickSwap V2 is assigned a constant fee tier of 0.3%. For QuickSwap V3, fee tiers are dynamically tracked via `Fee` events from `Pool` contracts or extracted from the initial `PoolCreated` events. Protocol-specific fee shares (community fees) are captured from `CommunityFee` events for Algebra-based V3 pools, while UniV3-style pools on Manta utilize a fixed protocol share logic.
- **Key fields**: `fee`, `communityFee0New`, `communityFee1New`

### Component C: Supply-side fee allocation

- **Purpose**: Calculate the final share of fees designated for liquidity providers after protocol deductions.
- **Logic**: For QuickSwap V2, supply-side fees are calculated as 100% of the 0.3% trading fee until the protocol fee switch is activated, after which 5/6 of the total fee is allocated to the supply side. For QuickSwap V3 (Algebra), supply-side fees are calculated by subtracting the protocol fee (volume multiplied by the protocol fee tier) from the total fees (volume multiplied by the pool fee tier). For QuickSwap V3 (UniV3) on Manta, 100% of fees are allocated to the supply side during the initial period, followed by a 90% allocation to liquidity providers.
- **Key fields**: `trading_volume`, `flash_loan_volume`, `fee_tier`, `protocol_fee_tier`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all fee values to USD and aggregate them into daily time series.
- **Logic**: Asset amounts are normalized by decimal precision. To mitigate the impact of price manipulation in low-liquidity pools, the USD value of a trade is determined by taking the lesser USD value of the two assets involved in the swap. Total supply-side fees are then aggregated by day, chain, and product version using UTC day boundaries.
- **Key fields**: `price_usd`, `decimals`, `timestamp`

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

Portion of fees distributed to service providers or supply-side participants.

QuickSwapQUICK

Supply-side fees

Supply-side fees

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Chain breakdown