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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Exchanges (DEX)

SyncSwap

# SyncSwap Expenses Methodology

## 1. Overview

SyncSwap expenses represent the total operational costs incurred by the protocol, specifically token incentive payments made to users or liquidity providers. This metric answers the question: "How much does SyncSwap spend on token incentive programs to attract and retain users?" Currently, SyncSwap operates without active token incentive programs, so expenses are zero across all time periods. The calculation inherits the complete temporal and dimensional structure from the protocol's fee calculation infrastructure.

## 2. Data sources

The expenses calculation relies on the following data sources to establish its structure and scope:

- **Blockchain events**: Parsed zkSync Era `Swap` events from both `ClassicPool` and `StablePool` contracts, and `FlashLoan` events from `Vault` contracts
- **Transaction data**: zkSync Era transaction records containing user addresses and transaction metadata
- **Pool creation events**: Parsed `PoolCreated` events from both `StablePoolFactory` and `ClassicPoolFactory` contracts that define trading pairs
- **Fee management events**: Parsed `SetPoolSwapFee` and `SetPoolProtocolFee` events from `FeeManager` contracts tracking fee tier changes
- **External data**: End-of-day token price feeds for USD conversion and token metadata including symbols and decimal specifications
- **Protocol configuration**: Hardcoded fee tiers, protocol fee tiers, and product classifications for different pool types

## 3. Step-by-step calculation

### Component A: Fee infrastructure foundation
- **Purpose**: Establish the temporal and dimensional structure that expenses will inherit
- **Logic**: Process all trading activity through swap events on both Classic and Stable pools, combine with flash loan activity from Vault contracts, aggregate by day with proper decimal correction and USD conversion using end-of-day price feeds, apply fee tier updates chronologically to calculate accurate fee amounts, and create the complete data structure with timestamp, chain, and product dimensions
- **Key fields**: Daily `timestamp` boundaries, `chain_id` for zkSync Era, `product_id` distinguishing Classic and Stable pools, trading volumes and flash loan fees in USD

### Component B: Token incentive determination
- **Purpose**: Calculate the actual token incentive amounts that constitute expenses
- **Logic**: Use the complete dimensional structure from fee calculations including all time periods, chains, and product categories, but set `token_incentives` to zero for every record since SyncSwap currently operates without active token incentive programs or liquidity mining rewards
- **Key fields**: Zero-valued `token_incentives` across all dimensions, maintaining full temporal and product coverage

### Component C: Expense mapping
- **Purpose**: Convert token incentives into the final expenses metric
- **Logic**: Take the zero-valued token incentives and map them directly to the `expenses` field without any transformation, maintaining all dimensional and temporal attributes from the underlying data structure
- **Key fields**: `expenses` field containing zero values, complete timestamp and product coverage

### Final aggregation
- **Combining components**: Token incentives are directly mapped to expenses with no mathematical transformation (expenses = token_incentives)
- **Currency conversion**: No conversion needed since values are zero, but the infrastructure supports USD-denominated calculations
- **Time aggregation**: Daily boundaries are maintained from the underlying fee calculation structure, ensuring consistent temporal granularity
- **Final calculation**: Expenses equal zero for all time periods, chains, and product categories since SyncSwap has no active token incentive programs

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

Total project operating and incentive expenses.

SyncSwap

Expenses

Expenses

Competitive landscape

Chain breakdown