# SUNSwap V2 Trading volume Methodology

## 1. Overview

Trading volume is defined as the total value of trades executed on SUNSwap V2. Since trading fees are paid by users on their trades, this metric is closely correlated with the protocol's ability to generate fees and revenue. SUNSwap V2 is structured as a constant-product automated market maker (AMM) on the Tron blockchain. Only trades executed through SUNSwap V2 liquidity pools are included in this metric.

## 2. Data sources

- **Blockchain events**: `PairCreated` events from `Factory` contracts and `Swap` events from `Pair` contracts, covering Tron
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: SUNSwap V2 pool and trading pair identification

- **Purpose**: Identify active SUNSwap V2 liquidity pools and their associated assets
- **Logic**: `PairCreated` events from `Factory` contracts are parsed to identify deployed liquidity pools on Tron. For each pool, the contract address, the addresses of the two underlying assets, and their respective decimal precisions are extracted. A fixed fee tier of 0.3% is assigned to all SUNSwap V2 pools.
- **Key fields**: `account_address` (pool address), `token0_address`, `token1_address`, `fee_tier`

### Component B: SUNSwap V2 swap event extraction

- **Purpose**: Capture individual swap transactions and calculate the net asset amounts exchanged
- **Logic**: `Swap` events from `Pair` contracts are parsed. For each swap, the incoming and outgoing amounts for both assets in the pool are extracted. Net amounts for each asset are calculated by subtracting the outgoing amount from the incoming amount. Transactions are filtered to include only those occurring on or after December 14, 2021.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `block_timestamp`

### Component C: USD conversion and valuation

- **Purpose**: Convert asset amounts to USD and determine the final trade value
- **Logic**: Net asset amounts are normalized by decimal precision. The normalized amounts are multiplied by end-of-day asset prices sourced from price feeds. To prevent inflation from unpriced or illiquid assets, each swap is valued at the lesser of its two USD-denominated legs. If one of the assets is classified as a tokenized stock, the trade is valued using the tokenized stock leg.
- **Key fields**: `amount_0`, `amount_1`, `price_usd`, `trading_volume`

### Component D: Aggregation and zero-filling

- **Purpose**: Aggregate trading volume to daily granularity and ensure data continuity
- **Logic**: Trading volumes are aggregated by day, chain, and product. Missing days within the time series are filled with zero values to maintain data continuity. Chain availability filters are applied to align the data with approved historical boundaries.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume