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Exchanges (DEX)

Shadow

# Shadow Trading volume Methodology

## 1. Overview

This metric calculates the daily USD trading volume for Shadow Exchange, a decentralized exchange protocol operating on the Sonic blockchain. The calculation aggregates swap activity from both Shadow Exchange v2 (AMM pairs) and v3 (concentrated liquidity pools), converting token amounts to USD values using end-of-day price feeds. The methodology employs anti-manipulation measures by taking the minimum USD value between the two tokens in each swap to filter out trades with artificially inflated prices.

## 2. Data sources

The calculation relies on several types of blockchain and external data:

- **Swap events**: Parsed `Swap` events from Shadow Exchange v2 Pair contracts and Shadow Exchange v3 Pool contracts on Sonic blockchain, containing token amounts exchanged in each trade
- **Factory events**: `PairCreated` events from Shadow Exchange v2 Factory and `PoolCreated` events from Shadow Exchange v3 Factory contracts, establishing trading pairs and their constituent tokens
- **Fee parameter events**: Various events tracking changes to pool fee tiers and protocol fee splits over time, including `SetPairFee`, `FeeAdjustment`, `SetPairFeeSplit`, and `SetFeeProtocol` events
- **Transaction records**: Sonic blockchain transaction data providing user addresses and transaction context
- **Token metadata**: Token information including decimal precision and symbols for proper amount calculations and pair identification
- **End-of-day price feeds**: Daily USD price data for tokens to enable volume conversion from native token amounts to USD values

## 3. Step-by-step calculation

### Component A: Trade extraction and processing
- **Purpose**: Extract and standardize swap events from both Shadow Exchange protocol versions
- **Logic**: Parse `Swap` events from Shadow Exchange v2 Pair contracts and v3 Pool contracts on Sonic. For v2 swaps, calculate net token amounts by taking the difference between `amount0In` minus `amount0Out` for token0, and `amount1In` minus `amount1Out` for token1. For v3 swaps, use `amount0` and `amount1` values directly as they represent the net amounts. Join with Sonic transaction records using `transaction_hash` to obtain user addresses from the transaction `from_address` field. Create a chronological ordering system using `order_id` calculated as a concatenation of zero-padded block number and log index
- **Key fields**: `token0_amount` and `token1_amount` (net token quantities), `account_address` (pool/pair contract), `user_address` (transaction sender), `order_id` (chronological ordering)

### Component B: Trading pair dimensions
- **Purpose**: Establish trading pair metadata and token information
- **Logic**: Extract trading pair creation events from Shadow Exchange v2 Factory `PairCreated` events and v3 Factory `PoolCreated` events to identify valid trading pairs. Join with token metadata to obtain `decimals` for both `token0_address` and `token1_address` in each pair. Create human-readable pair names by concatenating token symbols with a hyphen separator. This dimensional data enables proper decimal correction and pair identification
- **Key fields**: `account_address` (pool/pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name` (symbol pair)

### Component C: Pool fee dimensions
- **Purpose**: Track time-varying fee parameters for accurate fee calculations
- **Logic**: Build historical records of fee tier changes by parsing various fee-related events including `SetPairFee`, `FeeAdjustment`, and pool creation events that set initial fees. For Shadow Exchange v2, handle factory-level default fee changes that affect new pairs created after the change. Create time intervals using `order_id` ranges where each fee configuration remains valid until the next change. Convert fee values from basis points or other units to decimal percentages by dividing by appropriate powers of 10. Similarly track protocol fee splits using `SetPairFeeSplit`, `SetFeeProtocol` events and function calls
- **Key fields**: `fee_tier` (trading fee percentage), `fee_split` (protocol fee split percentage), `order_id` ranges for temporal validity

### Component D: Volume aggregation with fee context
- **Purpose**: Combine trades with their associated trading pairs and applicable fee parameters
- **Logic**: Join trades with trading pair dimensions using `chain` and `account_address` matching. Apply pool fee dimensions using range-based joins where the trade `order_id` falls within the valid range for specific fee parameters (greater than the fee change `order_id` and less than or equal to the next fee change `order_id`). Convert raw token amounts to decimal-adjusted amounts by dividing by 10 raised to the power of token decimals. Take absolute values to ensure positive trading volumes. Aggregate to daily time boundaries using `timestamp_trunc` to day level, grouping by timestamp, chain, product identifier, version, and fee parameters
- **Key fields**: Decimal-corrected `token0_amount` and `token1_amount`, `fee_tier`, `fee_split`, daily `timestamp`

### Component E: USD conversion with manipulation filtering
- **Purpose**: Convert token amounts to USD values while filtering price manipulation
- **Logic**: Join the aggregated daily volumes with end-of-day price feeds for both `token0_address` and `token1_address` using timestamp, chain, and token address matching. Calculate USD values by multiplying decimal-corrected token amounts by their respective USD prices. Apply anti-manipulation filtering by taking the minimum USD value between the two tokens in each swap using the `least` function. This prevents trades with artificially inflated prices from one token from skewing volume calculations. Sum the minimum USD values across all trades for each day, chain, and product combination
- **Key fields**: `price_usd` from price feeds, calculated USD values for both tokens, minimum USD value per trade

### Final aggregation
- **Combining components**: Sum the minimum USD values from all swaps for each combination of timestamp, chain, and product identifier to get total daily trading volume
- **Currency conversion**: USD conversion occurs at the individual trade level using end-of-day price feeds, with anti-manipulation filtering applied before summation
- **Time aggregation**: All volumes are aggregated to daily boundaries using day-truncated timestamps
- **Final calculation**: The metric represents the sum of minimum USD values across all Shadow Exchange swaps on each day, providing a manipulation-resistant measure of actual trading volume while accounting for both v2 and v3 protocol versions and their varying fee structures

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

Total value of spot trades executed on the exchange.

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