Liquidity providers deposit funds into SolidLizard and stake their LP tokens to receive SLIZ tokens (token incentives).

SolidLizard is a non-custodial exchange protocol built on Arbitrum. SolidLizard was founded by an anonymous team and launched in 2023.

SLIZ tokenholders own and govern the protocol. They vote for pools where they wish to receive trading fees and external bribes from, while pools receive SLIZ emissions in respect to their share of votes.

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SolidLizard

# SolidLizard Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures how efficiently capital is being utilized in SolidLizard's decentralized exchange by calculating the ratio of daily trading volume to total value locked (TVL). This metric indicates how many times the available liquidity is "turned over" through trading activity, with higher ratios suggesting more active and efficient capital utilization.

The calculation divides daily trading volume by TVL, where both components are measured in USD. A liquidity turnover ratio of 0.5 means the daily trading volume equals half of the TVL, while a ratio of 2.0 indicates trading volume is twice the TVL.

## 2. Data sources

- **Arbitrum blockchain events**: Parsed `Pair_Sync`, `Pair_Swap`, and `PairFactory_PairCreated` events from SolidLizard v1 smart contracts on Arbitrum
- **Transaction data**: Arbitrum transaction records to identify user addresses and transaction context
- **Token metadata**: Token contract information including decimal places and symbols for proper amount calculations and pair naming
- **Price feeds**: End-of-day token price data for USD conversion of token amounts

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identifies all SolidLizard trading pairs and their token compositions
- **Logic**: Processes `PairFactory_PairCreated` events to extract trading pair contract addresses and their associated token0 and token1 addresses. Enriches with token metadata including decimal places and symbols to create human-readable pair names in "TOKEN0-TOKEN1" format
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name` (formatted pair name)

### Component B: Daily trading volume calculation
- **Purpose**: Aggregates trading activity into daily USD volumes with manipulation protection
- **Logic**: Processes `Pair_Swap` events to extract token amount changes for both tokens in each trade. Applies absolute value to capture total trading volume regardless of direction. Normalizes amounts using token decimal places, converts both token amounts to USD using end-of-day price feeds, and applies manipulation protection by taking the minimum USD value between the two tokens in each swap. Aggregates all trades by day and trading pair
- **Key fields**: `token0_amount` and `token1_amount` (normalized amounts), `trading_volume` (USD value using minimum of both tokens)

### Component C: TVL calculation from reserve tracking
- **Purpose**: Calculates total value locked by tracking cumulative changes in exchange reserves
- **Logic**: Processes `Pair_Sync` events to track reserve balance changes for each trading pair. For each day, identifies the final reserve balances for both tokens using last value within the day. Calculates daily net changes by comparing each day's final reserves to the previous day's final reserves. For pairs with no previous data, uses the full reserve amount as the initial deposit. Converts token amounts to USD using end-of-day price feeds and sums across both tokens to get total daily net deposits. TVL represents the cumulative sum of these daily net deposits over time
- **Key fields**: `reserve0_amount` and `reserve1_amount` (daily final balances), `token0_amount` and `token1_amount` (daily changes), `net_deposits` (USD value), `tvl` (cumulative USD value)

### Final aggregation
- **Combining components**: Trading volume and TVL metrics are calculated independently and then combined using the liquidity turnover macro
- **Currency conversion**: All amounts converted to USD using end-of-day price feeds matched by timestamp, token address, and blockchain
- **Time aggregation**: Daily boundaries used consistently across all components, with trading activity aggregated by day and reserve changes tracked as daily snapshots
- **Final calculation**: Liquidity turnover equals daily trading volume divided by TVL for the same day, providing a ratio that measures capital efficiency

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

Trading volume divided by total liquidity.

SolidLizardSLIZ

Liquidity turnover

Liquidity turnover

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