# SUNSwap V4 Trading volume Methodology

## 1. Overview

Trading volume is measured as the total value of trades executed on SUNSwap V4. Since trading fees are paid by users on their trades, this metric correlates with the ability of SUNSwap V4 to generate fees and revenue. Concentrated liquidity swaps executed through SUNSwap V4 pools are captured by this metric.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Pool initialization and metadata resolution

- **Purpose**: Identify active SUNSwap V4 pools and resolve their asset configurations.
- **Logic**: `Initialize` events from `PoolManager` contracts are parsed to identify pool addresses, asset addresses, and fee tiers. Native TRX addresses are mapped to wrapped TRX (WTRX). Fee tiers are extracted and normalized by dividing the raw fee value by one million, with dynamic fee pools flagged accordingly. Asset decimals and symbols are joined from asset metadata to enable normalization.
- **Key fields**: `id` (pool address), `currency0` (asset 0 address), `currency1` (asset 1 address), `fee` (fee tier)

### Component B: Swap event extraction

- **Purpose**: Capture individual trade details from SUNSwap V4 pools.
- **Logic**: `Swap` events from `PoolManager` contracts are parsed to extract trade details. Trader-side asset deltas are captured and inverted to represent pool-side changes, ensuring positive values represent assets flowing into the pool. Transaction details are joined with native transaction records to verify block timestamps and user addresses.
- **Key fields**: `id` (pool address), `amount0` (asset 0 delta), `amount1` (asset 1 delta), `sender` (contract user address), `transaction_hash` (transaction identifier)

### Component C: Volume normalization and USD conversion

- **Purpose**: Normalize trade amounts and convert them to USD.
- **Logic**: Raw trade amounts are normalized by decimal precision for each asset. Daily trade volumes are aggregated by pool and trading pair. Normalized amounts are multiplied by end-of-day asset prices. Each swap is valued at the lesser of its two legs, except when exactly one leg is classified as a tokenized stock, in which case the trade is valued using the tokenized stock leg. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `amount_0` (normalized asset 0 volume), `amount_1` (normalized asset 1 volume), `price_usd` (asset price)

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

Total value of spot trades executed on the exchange.

Trading volume