# Raydium OpenBook Trading volume Methodology

## 1. Overview

Trading volume measures the total value of trades executed through the Raydium OpenBook (Legacy AMM V4) program. This metric captures the dollar-denominated activity across the protocol's central limit order book-integrated pools on Solana. Since trading fees are generated as a percentage of trade execution, this volume is utilized as a core indicator of the protocol's fee-generation potential and liquidity depth.

## 2. Data sources

- **Blockchain events**: DEX trade instructions from the Raydium OpenBook program, covering Solana
- **External data**: End-of-day price feeds for assets traded within Raydium OpenBook pools

## 3. Step-by-step calculation

### Component A: Trade instruction extraction

- **Purpose**: Identify and capture swap activity specifically originating from the Raydium OpenBook program.
- **Logic**: Trade instructions are parsed from the Solana blockchain. Activity is filtered to include only those instructions where the executing account or outer executing account corresponds to the Raydium OpenBook program. Data points including the pool account, base mint, quote mint, and raw transaction amounts are extracted. Transactions missing critical vault or mint information are excluded to ensure data integrity.

### Component B: Amount normalization

- **Purpose**: Convert raw on-chain quantities into standardized asset units.
- **Logic**: Raw base and quote asset quantities are normalized by decimal precision using asset metadata. This process ensures that asset amounts are adjusted for their specific on-chain decimal configurations before valuation.

### Component C: USD valuation and volume determination

- **Purpose**: Assign a standardized USD value to trade activity while mitigating data noise from low-liquidity assets.
- **Logic**: Normalized asset amounts are multiplied by end-of-day price feeds to determine the USD value of both the base and quote sides of each trade. The lesser of the two USD values is selected as the canonical trading volume for the transaction. This methodology is employed to prevent the inclusion of inflated volumes from assets with low liquidity or stale price data.

### Component D: Aggregation and finalization

- **Purpose**: Consolidate individual trade data into periodic totals for reporting.
- **Logic**: Trade volumes are summed and grouped by date, chain, and pool. The values are aggregated to daily granularity using UTC day boundaries. Data is subjected to final schema validation and zero-filling for days where no activity is recorded before being finalized for the platform.

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)