# XRPL AMM Trade count Methodology

## 1. Overview

Trade count measures the number of swaps executed through XRPL AMM liquidity pools. Each swap represents a single reserve-changing transaction where a user exchanges one asset for another through an automated market maker pool. Trade count reflects trading activity intensity on XRPL AMM independent of transaction value.

## 2. Data sources

- **Blockchain transactions**: Reserve state changes from XRPL AMM pool accounts on XRP Ledger, filtered to `Payment` and `OfferCreate` transaction types that route through XRPL AMM liquidity
- **Pool exclusions**: Denylisted pool addresses exhibiting pricing anomalies (extreme reserve imbalances of 5000x or higher)

## 3. Step-by-step calculation

### Component A: Reserve state tracking

- **Purpose**: Identify all transactions that modify XRPL AMM pool reserves as candidates for swap detection
- **Logic**: Parse reserve snapshots for each XRPL AMM pool from consecutive transactions. Track `reserve_0` and `reserve_1` for both assets in the pool. Calculate the previous reserve values using lag logic ordered by timestamp and transaction index across all transaction types to ensure reserve changes from liquidity provider operations are excluded from swap detection.

### Component B: Swap identification

- **Purpose**: Isolate actual swaps from other reserve-moving operations
- **Logic**: Filter transactions to `Payment` and `OfferCreate` types, which represent user-initiated trades routed through XRPL AMM pools via auto-bridging or the DEX engine. Exclude transactions where either reserve remains unchanged compared to the previous state. Apply the pool denylist to remove pools with pricing anomalies. Each qualifying transaction with simultaneous changes to both reserves is counted as one trade.

### Component C: Daily aggregation

- **Purpose**: Aggregate trade counts to daily granularity
- **Logic**: Count distinct swap transactions per day, grouped by asset pair and pool fee tier. Daily granularity uses UTC day boundaries.

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

Number of trades executed on a decentralized exchange.

Trade count

Exchanges (DEX)

Through the use of blockchain and modern APIs, Ripple enables financial institutions who are part of the network, RippleNet, to send money globally, instantly, reliably and for fractions of a penny. RippleNet is built on top of Ripple’s consensus ledger, XRP Ledger (XRPL).

Ripple is the leading provider of crypto-enabled solutions for businesses. Ripple was founded by Chris Larsen and Jed McCaleb and launched in 2012 (previously OpenCoin).

XRP tokenholders own and govern Ripple's consensus ledger 'XRP Ledger' (XRPL). Ripple's investors include a16z, Pantera Capital, Route 66 Ventures, etc.