Liquidity providers deposit funds into SyncSwap and receive trading fees from traders (supply-side fees).

SyncSwap is a non-custodial exchange protocol built on zkSync Era (originally a fork of Uniswap). SyncSwap was founded by an anonymous team in 2023.

The SyncSwap team owns and governs the protocol. They currently take a cut of the trading fees paid by the users (revenue).

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SyncSwap

# SyncSwap Earnings Methodology

## 1. Overview

SyncSwap earnings represents the net profit generated by the SyncSwap decentralized exchange protocol on zkSync Era. The metric is calculated as total revenue minus total expenses, where revenue comes from trading fees and flash loan fees collected by the protocol, and expenses represent token incentives paid to users. Since SyncSwap currently has no active token incentive programs, earnings effectively equals revenue.

## 2. Data sources

- **SyncSwap swap events**: Parsed `ClassicPool_Swap_event` and `StablePool_Swap_event` logs from SyncSwap v1 contracts on zkSync Era, containing trade amounts for both tokens in each trading pair
- **SyncSwap flash loan events**: Parsed `Vault_FlashLoan_event` logs from SyncSwap v1 vault contracts, containing flash loan amounts and fee amounts
- **Pool creation events**: Parsed `ClassicPoolFactory_PoolCreated_event` and `StablePoolFactory_PoolCreated_event` logs establishing trading pairs with initial fee tier configurations
- **Fee update events**: Parsed `FeeManager_SetPoolSwapFee_event` and `FeeManager_SetPoolProtocolFee_event` logs tracking changes to swap fees and protocol fee percentages over time
- **zkSync Era transaction records**: Transaction data providing user addresses and transaction context for swap and flash loan events
- **End-of-day token price feeds**: Daily USD prices for all tokens traded on SyncSwap, used for volume and revenue calculations
- **Token metadata**: Token symbols, decimal precision, and contract addresses for proper amount calculations and pair naming

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate the USD value of trading activity to determine fee-generating volume
- **Logic**: Extract swap events from both Classic pools (200 basis points default fee) and Stable pools (40 basis points default fee). For each swap, calculate the absolute change in both `token0_amount` and `token1_amount`. Convert raw token amounts to human-readable values using token decimal precision. Apply end-of-day USD prices to both token amounts and use the smaller USD value between the two tokens to prevent price manipulation attacks. Aggregate all swaps by day to get daily trading volume per pool.
- **Key fields**: `token0_amount` and `token1_amount` from swap events, `amount0In`, `amount0Out`, `amount1In`, `amount1Out` calculations, `fee_tier` from pool configuration

### Component B: Fee tier management  
- **Purpose**: Track current fee rates for accurate revenue calculation as fees can change over time
- **Logic**: Start with initial fee tiers from pool creation events (Classic pools: 0.002 or 0.2%, Stable pools: 0.0004 or 0.04%). Monitor fee update events that modify swap fees or protocol fees for specific pools. Apply fee changes chronologically based on block number and log index ordering. Each trade uses the fee tier that was active at the time of the transaction.
- **Key fields**: `fee_tier` (total swap fee), `protocol_fee_tier` (portion captured by protocol, typically 50% or 0.5), pool addresses for fee updates

### Component C: Trading revenue calculation
- **Purpose**: Calculate protocol revenue from trading activity
- **Logic**: Multiply daily trading volume by the applicable fee tier and protocol fee tier. The calculation is `trading_volume * fee_tier * protocol_fee_tier`. This captures only the portion of trading fees that goes to the protocol treasury rather than to liquidity providers. Sum across all pools and trading pairs to get total daily trading revenue.
- **Key fields**: `trading_volume` in USD, `fee_tier` as decimal (e.g., 0.002), `protocol_fee_tier` as decimal (e.g., 0.5)

### Component D: Flash loan revenue calculation  
- **Purpose**: Calculate protocol revenue from flash loan services
- **Logic**: Extract flash loan events containing loan amounts and fee amounts. Convert fee amounts from raw values to human-readable amounts using token decimal precision. Apply end-of-day USD prices to convert fee amounts to USD values. Sum all flash loan fees by day. Flash loan fees represent direct protocol revenue as they are paid entirely to the protocol.
- **Key fields**: `fee_amount` from flash loan events, `amount` (loan principal), `token_address` for price lookup

### Component E: Expenses calculation
- **Purpose**: Account for protocol expenses, primarily token incentive programs
- **Logic**: Currently set to zero as SyncSwap has no active token incentive programs. Token incentives would typically include liquidity mining rewards, trading incentives, or governance token distributions paid by the protocol to encourage user activity.
- **Key fields**: `token_incentives` (currently zero for all time periods)

### Final aggregation
- **Combining components**: Revenue equals the sum of trading revenue and flash loan revenue. Both components are aggregated daily and combined using union operations to create total daily revenue across all products and chains.
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds applied to the date of the transaction. Price feeds are matched by timestamp, token address, and chain.
- **Time aggregation**: All events are aggregated to daily boundaries using timestamp truncation. Each day includes all transactions from 00:00:00 to 23:59:59 UTC.
- **Final calculation**: Earnings equals total revenue minus total expenses. Since expenses are currently zero, earnings equals revenue. The formula is `earnings = (trading_volume * fee_tier * protocol_fee_tier) + flash_loan_fees - token_incentives`.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

SyncSwap

Earnings

Earnings

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