# Raydium CPMM Trading volume Methodology

## 1. Overview

The total market value of all asset swaps executed through the Constant Product Market Maker (CPMM) program is measured by the trading volume for Raydium CPMM. Liquidity and trading activity within Raydium CPMM pools are reflected by this metric. The utility of the program and its capacity to generate fees for liquidity providers and the protocol are indicated by this metric.

## 2. Data sources

- **Blockchain events**: `Initialize`, `CreateAmmConfig`, and `UpdateAmmConfig` from `CPMM` programs, and trade activity from Solana decentralized exchange records, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Raydium CPMM trade instruction extraction

- **Purpose**: Swap activity specifically related to the Raydium CPMM program is identified and isolated.
- **Logic**: Transactions are filtered from the Solana DEX activity where the executing account or outer executing account matches the Raydium CPMM program ID. Base and quote asset amounts, mints, and vault accounts are extracted for each identified instruction. Instructions with null or empty values for pool accounts or asset mints are excluded to ensure data integrity.
- **Key fields**: `base_amount`, `quote_amount`, `base_mint`, `quote_mint`, and `pool_address`

### Component B: Decimal normalization and price integration

- **Purpose**: Raw on-chain quantities are converted into human-readable values and USD valuations are assigned.
- **Logic**: Asset amounts are normalized by their respective decimal precision. End-of-day price feeds are joined to each trade side based on the asset's mint and the transaction timestamp. An asset denylist is applied to exclude suspicious or low-integrity assets from the valuation process.
- **Key fields**: `base_amount`, `quote_amount`, `base_mint`, and `quote_mint`

### Component C: Trading volume valuation

- **Purpose**: The final USD value of each swap is determined while double-counting is prevented.
- **Logic**: The lesser USD value of the two trade sides is selected as the representative trading volume for each swap. This is calculated by comparing the USD value of both assets involved in the swap and selecting the minimum value.
- **Key fields**: `amount_0`, `amount_1`, `token_address_0`, and `token_address_1`

### Component D: Daily aggregation

- **Purpose**: Trade-level data is consolidated into daily totals for reporting.
- **Logic**: Trading volumes are summed at a daily granularity using UTC day boundaries. Values are grouped by chain and product ID to ensure the output is specific to Raydium CPMM.
- **Key fields**: `timestamp`, `chain_id`, and `product_id`

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)