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Raydium

# Raydium Liquidity turnover Methodology

## 1. Overview

The efficiency of capital utilization in Raydium's liquidity pools is measured by liquidity turnover, which is calculated as the ratio of daily trading volume to total value locked (TVL). The number of times locked liquidity turns over through trading activity each day is indicated by this metric. More active trading relative to the amount of capital locked in pools is suggested by a higher turnover ratio, while less trading activity relative to liquidity depth is indicated by a lower ratio. The calculation is performed using the formula: **Liquidity Turnover = Daily Trading Volume ÷ Daily TVL**

## 2. Data sources

- **Blockchain events**: Swap instructions, asset balance changes, and configuration instructions from Raydium programs, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trading volume calculation

- **Purpose**: To calculate the daily USD value of trading activity across all Raydium pools
- **Logic**: Swap instructions are extracted from Solana DEX trades involving any of the five Raydium programs: Raydium CPMM, Raydium Stable Swap, Raydium OpenBook, Raydium CLMM, and Raydium LaunchLab. For each trade, the base asset amount, quote asset amount, token mint accounts, vault accounts, and pool account are captured. Validation is performed to ensure that all required fields are not null or empty. Trades are then aggregated by day and pool before price conversion. For USD conversion, each trade is joined with end-of-day asset prices for both assets. To avoid double-counting the trading volume, the lesser USD value between the two swapped asset amounts is selected as the representative trading volume. The daily trading volume is calculated as the sum of these representative USD values across all trades.
- **Key fields**: `amount_0`, `amount_1`, `token_address_0`, `token_address_1`, `pool_address`, `timestamp`, `trading_volume`

### Component B: TVL calculation

- **Purpose**: To calculate the daily USD value of assets locked in Raydium liquidity pools
- **Logic**: Asset balances in Raydium pool vault accounts are tracked by processing Solana asset balance changes. Relevant vault accounts are identified by matching token account and mint accounts from the trade data. When no balance changes occur on a given day, the last known balance is carried forward. For each asset balance, the asset amount is multiplied by the end-of-day USD price to determine the USD value. Important filtering and validation logic is applied: pools without at least one reliable asset (SOL, USDC, USDT, JitoSOL, wBTC, JLP, or JUP) are excluded from calculations using a pool denylist, and specific problematic token vault accounts are excluded from the pool vault mapping. The daily TVL is calculated as the sum of all qualifying pool vault USD values.
- **Key fields**: `amount`, `token_mint`, `account_address`, `pool_address`, `delta_tvl`, `tvl`

### Component C: Final aggregation

- **Purpose**: To combine trading volume and TVL to calculate liquidity turnover
- **Logic**: The trading volume and TVL are calculated independently for each day and then combined in the liquidity turnover calculation. Both components are aggregated to the daily level using the same project identifier. All amounts are converted to USD using end-of-day asset prices. All data is aggregated to daily boundaries using day truncation of timestamps. A zero-filling strategy is applied, meaning days with no trading activity are represented with zero volume rather than null values. For each day, the liquidity turnover is calculated as: Daily Trading Volume (USD) ÷ Daily TVL (USD). A ratio indicating how many times the locked liquidity was traded on that day is produced.
- **Key fields**: `trading_volume`, `tvl`, `liquidity_turnover`

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

Trading volume divided by total liquidity.

RaydiumRAY

Liquidity turnover

Liquidity turnover

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