# SUNSwap V3 Trading volume Methodology

## 1. Overview

Trading volume is measured as the total USD value of trades executed on SUNSwap V3. This metric is used to analyze the protocol's capacity to generate fees and revenue, as trading fees are paid by users on executed trades. Only SUNSwap V3, a concentrated liquidity protocol, is covered within this scope.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts and `Swap` events from `Pool` contracts, covering the Tron blockchain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pool registration and metadata extraction

- **Purpose**: Identify active SUNSwap V3 liquidity pools and their associated assets
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to identify newly deployed pools. For each pool, the contract address, the addresses of the two paired assets, and the fee tier are extracted. The fee tier is normalized by dividing the raw fee value by one million. Asset decimals and symbols are joined from asset metadata to enable subsequent volume normalization.
- **Key fields**: `pool_address`, `token0_address`, `token1_address`, `fee_tier`

### Component B: Swap event extraction and normalization

- **Purpose**: Capture and normalize individual trade amounts from SUNSwap V3 pools
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract the raw swap amounts for both assets in the pool. These raw amounts are normalized by the decimal precision of their respective assets. The absolute values of the normalized amounts are calculated to represent the volume of each leg of the trade. Transactions are filtered to include only those occurring on or after June 20, 2023.
- **Key fields**: `block_timestamp`, `transaction_hash`, `pool_address`, `amount0`, `amount1`

### Component C: USD valuation and aggregation

- **Purpose**: Convert normalized trade volumes to USD and aggregate to daily totals
- **Logic**: Normalized asset amounts are multiplied by end-of-day price feeds to determine the USD value of each trade leg. To prevent distortion from unpriced or illiquid assets, each swap is valued at the lesser of its two legs, unless one leg is classified as a tokenized stock, in which case that leg's value is prioritized. The resulting USD trading volumes are aggregated by pool and day using UTC boundaries. Missing days are zero-filled to ensure a continuous time series.
- **Key fields**: `timestamp`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume