# XRPL AMM Trading volume Methodology

## 1. Overview

Trading volume measures the total USD value of swaps executed through XRPL AMM liquidity pools. Volume is inferred from reserve state changes between consecutive transactions, capturing the quantities exchanged through automated market maker pools. This metric reflects user trading activity and correlates with the protocol's ability to generate fee revenue for liquidity providers.

## 2. Data sources

- **Blockchain data**: Reserve state snapshots from XRPL AMM pool accounts, extracted from `affected_nodes` where `ledger_entry_type` is `XRPL AMM` and transactions are `Payment` or `OfferCreate` types with `tesSUCCESS` result, covering XRP Ledger
- **Pool configuration**: `AMMCreate` and `AMMVote` transactions capturing trading fee parameters from pool `affected_nodes`
- **External data**: End-of-day price feeds for traded assets
- **Pool denylist**: Nine pools excluded for pricing anomalies including NET/XRL, XRP/Laugh, DROP/Laugh, XPM/MinerCoin, BItx/CallCentre, XRP/3TW, XRP/IAW, XRP/EUSD, and XRP/LionArt
- **Asset denylist**: Three assets excluded for wash trading including FCK, YOU, and CML tokens

## 3. Step-by-step calculation

### Component A: Reserve delta extraction

- **Purpose**: Infer swap volumes from changes in XRPL AMM pool reserves
- **Logic**: Reserve snapshots are extracted from `affected_nodes` for each transaction that modified an XRPL AMM pool. The previous reserve state is computed using a lag function partitioned by pool address and ordered by block timestamp and transaction index, calculated across all transaction types to ensure consecutive swaps exclude liquidity provision reserve changes. Only `Payment` and `OfferCreate` transactions are retained as these are the only transaction types that route swaps through XRPL AMM pools. Absolute deltas are calculated for both reserve sides where both reserves changed and previous state exists. Pools matching the denylist are excluded.
- **Key fields**: `reserve_0` and `reserve_1` (current pool balances), `previous_reserve_0` and `previous_reserve_1` (prior balances), `transaction_type` (swap routing method)

### Component B: Fee parameter assignment

- **Purpose**: Join current trading fee rate to each swap
- **Logic**: Pool fee rates are extracted from `AMMCreate` and `AMMVote` transaction `affected_nodes` containing the `TradingFee` field. Fees become valid at the transaction timestamp and remain valid until the next fee update. Each swap is joined to the most recent fee record where the swap timestamp falls within the fee validity window. If no fee record exists, the trading fee defaults to zero. When multiple fee records match due to incremental processing, the most recent fee validity start is selected.
- **Key fields**: `trading_fee` (fee rate in basis points), `fee_valid_from` and `fee_valid_to` (fee validity window)

### Component C: Daily aggregation

- **Purpose**: Sum swap volumes by day, asset pair, and fee tier
- **Logic**: Reserve deltas are aggregated to daily granularity with UTC day boundaries, grouped by timestamp, token pair, and trading fee rate. Transaction and trade counts are calculated for each group.

### Component D: USD conversion and deduplication

- **Purpose**: Normalize volumes to USD and eliminate double-counting
- **Logic**: Each token amount is multiplied by its end-of-day USD price. Since each swap moves reserves on both sides of the pool, the lesser of the two USD values is selected to avoid double-counting the same trade. Rows where both prices are unavailable or the resulting volume is zero are excluded.

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

Total value of spot trades executed on the exchange.

Trading volume

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.