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).

github

twitter

discord

website

Exchanges (DEX)

SyncSwap

# SyncSwap Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the portion of trading fees that goes to liquidity providers on SyncSwap, a decentralized exchange on zkSync Era. The metric is calculated as the trading volume multiplied by the fee tier, minus the protocol's share of those fees. This shows how much revenue liquidity providers earn from facilitating trades on the platform.

## 2. Data sources

The calculation uses several types of blockchain and external data:

- **SyncSwap trading events**: Parsed `Swap` events from SyncSwap V1 Classic and Stable pool contracts on zkSync Era
- **Pool creation events**: `PoolCreated` events from SyncSwap's ClassicPoolFactory and StablePoolFactory contracts that establish trading pairs
- **Fee management events**: `SetPoolSwapFee` and `SetPoolProtocolFee` events from SyncSwap's FeeManager contract for dynamic fee updates
- **Transaction data**: zkSync Era transaction records to identify end users
- **Price feeds**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimals and symbols for proper amount calculations and pair identification

## 3. Step-by-step calculation

### Component A: Trading pair configuration
- **Purpose**: Establishes all SyncSwap trading pairs with their default fee structures and token metadata
- **Logic**: Extracts pool creation events from both Classic and Stable pool factories on zkSync Era. Classic pools have a default 0.2% trading fee with 50% going to the protocol, while Stable pools have a 0.04% trading fee with the same 50% protocol share. Handles ETH address normalization by converting ETH addresses to WETH for consistency. Joins with token metadata to get decimals for amount calculations and symbols for pair naming
- **Key fields**: `account_address` (pool contract), `token0_address` and `token1_address` (trading pair tokens), `fee_tier` (trading fee percentage), `protocol_fee_tier` (protocol's share), token decimals and symbols

### Component B: Dynamic fee tracking
- **Purpose**: Captures fee changes that override default pool settings
- **Logic**: Monitors fee manager events that can update either trading fees or protocol fee shares for specific pools. Creates unique identifiers combining block number and log index, then uses window functions to establish time ranges when each fee setting was active. This allows the system to apply the correct fees based on when trades occurred
- **Key fields**: `account_address` (affected pool), `fee_tier` or `protocol_fee_tier` (new fee rates), unique identifiers for time range tracking

### Component C: Raw trade extraction
- **Purpose**: Captures all trading activity from SyncSwap pools
- **Logic**: Extracts `Swap` events from both Classic and Stable pool contracts, calculating net token amount changes by subtracting outgoing amounts from incoming amounts for each token in the pair. Links trades to zkSync Era transaction data to identify the end user (not just the contract caller). Creates unique trade identifiers and preserves all metadata needed for downstream processing
- **Key fields**: `token0_amount` and `token1_amount` (net changes), `account_address` (pool), user addresses, transaction details

### Component D: Volume calculation with fee application
- **Purpose**: Aggregates trading volumes and applies appropriate fee structures
- **Logic**: Aggregates trades daily and joins with trading pair metadata to get token decimals and default fee structures. Applies any dynamic fee updates by matching trade identifiers to fee update ranges, using the most recent fee settings active at trade time. Converts raw token amounts to human-readable amounts using token decimals. Joins with end-of-day price feeds to convert both token amounts to USD values
- **Key fields**: Daily aggregated `token0_amount` and `token1_amount`, applied `fee_tier` and `protocol_fee_tier`, USD-converted amounts

### Final aggregation
- **Combining components**: All trade data flows through the volume calculation component, which incorporates trading pair metadata and dynamic fee updates
- **Currency conversion**: Both tokens in each trade are converted to USD using end-of-day price feeds matched by date, token address, and chain. The lesser of the two USD values is used as the trading volume to prevent price manipulation where one token might have incorrect pricing
- **Time aggregation**: All trades are aggregated to daily boundaries using timestamp truncation
- **Final calculation**: Supply-side fees are calculated as: `trading_volume × fee_tier × (1 - protocol_fee_tier)`. This represents the total fees generated from trading volume, minus the portion that goes to the protocol, leaving the amount distributed to liquidity providers

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

Portion of fees distributed to service providers or supply-side participants.

SyncSwap

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown