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

Ramses is a non-custodial exchange protocol built on Arbitrum. Ramses was founded by pseudonyms Dog and North in 2023.

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

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Ramses Exchange

# Ramses Exchange Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures the efficiency of liquidity utilization by calculating the ratio of trading volume to total value locked (TVL). It indicates how many times the available liquidity is "turned over" through trading activity in a given period. A higher ratio suggests more efficient capital utilization, while a lower ratio indicates that liquidity sits idle. This metric provides insight into the productivity of deposited capital and the trading activity intensity relative to available liquidity.

The calculation formula is: **Liquidity Turnover = Daily Trading Volume / TVL**

## 2. Data sources

The methodology utilizes several categories of blockchain data and external feeds:

- **Swap events**: Parsed `Swap` events from Ramses v1 `LegacyPair` contracts and v2 `Pool` contracts on Arbitrum, containing token amounts exchanged and swap participants
- **Liquidity events**: Parsed `Mint` (deposits), `Collect` and `CollectProtocol` (withdrawals) events from Ramses v2 `Pool` contracts on Arbitrum
- **Reserve tracking events**: Parsed `Sync` events from Ramses v1 `LegacyPair` contracts on Arbitrum that track reserve balance changes
- **Factory events**: Parsed `PairCreated` events from Ramses v1 Factory and `PoolCreated` events from Ramses v2 Factory contracts for trading pair identification
- **Transaction data**: Arbitrum transaction records to identify actual transaction initiators
- **Token metadata**: Token contract information including decimal places and symbols for proper amount calculations
- **End-of-day price feeds**: Daily closing prices for tokens to enable USD conversion
- **CoinGecko price data**: Special price feed for the RAM token due to limited availability in standard price feeds

## 3. Step-by-step calculation

### Component A: Trading volume calculation

**Purpose**: Calculate daily trading volumes across all Ramses trading pairs, converted to USD values with manipulation protection.

**Logic**: The system captures all `Swap` events from both Ramses v1 and v2 contracts on Arbitrum. For v1 swaps, it calculates token amounts by taking the net change (`amount_in - amount_out`) for each token in the pair. For v2 swaps, it uses the direct `amount0` and `amount1` values. All amounts are converted from raw blockchain units by dividing by 10^(token_decimals) to get human-readable values. The system then converts both token amounts to USD using end-of-day price feeds. To prevent price manipulation attacks, it takes the lesser of the two USD values (token0_usd vs token1_usd) for each swap. Finally, it aggregates these USD values by day, product type, and version to get total daily trading volumes.

**Key fields**: `block_timestamp` for daily aggregation, `amount0In`, `amount0Out`, `amount1In`, `amount1Out` for v1 swaps, `amount0` and `amount1` for v2 swaps, `transaction_hash` and `log_index` for event identification, `address` for trading pair identification.

### Component B: Total value locked calculation

**Purpose**: Calculate the total USD value of assets locked in Ramses liquidity pools by tracking cumulative net deposits.

**Logic**: The TVL calculation follows different approaches for v1 and v2 contracts. For v1 pairs, it tracks daily `Sync` events that report current reserve balances for each token pair, then calculates the daily change by comparing each day's reserves to the previous day's reserves using a lag function. For v2 pools, it captures all asset flow events including `Mint` (deposits), `Collect` and `CollectProtocol` (withdrawals), and `Swap` events, then nets these flows to determine daily balance changes. All token amounts are corrected for decimals and converted to USD using end-of-day price feeds and special CoinGecko pricing for the RAM token. The system then sums all net deposit values across all trading pairs to arrive at the total TVL.

**Key fields**: `reserve0` and `reserve1` for v1 reserve balances, `amount0` and `amount1` for v2 flow events, `token0_address` and `token1_address` for price lookups, `account_address` for trading pair identification.

### Final aggregation

**Combining components**: The system takes the daily trading volume and TVL values for the same date and calculates the ratio. Both metrics are already denominated in USD, so no additional currency conversion is needed.

**Currency conversion**: All amounts are converted to USD using end-of-day price feeds, with special handling for the RAM token using CoinGecko data. Conversion happens after decimal correction but before aggregation.

**Time aggregation**: Both trading volume and TVL are calculated on daily boundaries using timestamp truncation to day level. The calculation uses the same day's values for both numerator and denominator.

**Final calculation**: Liquidity turnover equals daily trading volume divided by TVL for the same day. The result shows how many times the total locked value was traded during that day, providing a measure of capital efficiency and trading activity intensity.

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

Trading volume divided by total liquidity.

Ramses ExchangeRAM

Liquidity turnover

Liquidity turnover

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