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 Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures how efficiently SyncSwap's liquidity is being utilized by comparing daily trading volume to total value locked (TVL). It is calculated as the ratio of daily trading volume divided by TVL, indicating how many times the protocol's liquidity is turned over each day. A higher ratio suggests more active trading relative to the liquidity provided, while a lower ratio indicates less trading activity relative to available liquidity.

## 2. Data sources

- **zkSync Era swap events**: Parsed `ClassicPool_Swap_event` and `StablePool_Swap_event` logs containing trade execution data with token amounts in/out, trader addresses, and transaction details
- **zkSync Era reserve tracking events**: Parsed `ClassicPool_Sync_event` and `StablePool_Sync_event` logs that record changes to liquidity pool reserves for both tokens in each trading pair
- **zkSync Era pool creation events**: Parsed `ClassicPoolFactory_PoolCreated_event` and `StablePoolFactory_PoolCreated_event` logs that establish trading pairs with their token addresses and initial fee configurations
- **zkSync Era fee management events**: Parsed `FeeManager_SetPoolSwapFee_event` and `FeeManager_SetPoolProtocolFee_event` logs that track dynamic updates to trading and protocol fee tiers
- **zkSync Era transaction data**: Transaction records providing user addresses and transaction metadata for trade attribution
- **Token metadata**: Token information including symbols, decimal places, and contract addresses for proper amount calculations and display names
- **End-of-day price feeds**: Daily USD price data for all tokens traded on SyncSwap for currency conversion

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate the total USD value of trading activity on SyncSwap for each day
- **Logic**: Extract all swap events from both Classic and Stable pool types on zkSync Era. For each trade, calculate the net amount of each token by subtracting the output amount from input amount (`amount_in - amount_out`). Join with trading pair metadata to get token decimal places and correct the amounts by dividing by `10^decimals`. Convert both token amounts to USD using end-of-day price feeds. Apply price manipulation filtering by taking the minimum USD value between the two tokens in each trade pair. Join with transaction data to identify the actual user addresses. Apply any dynamic fee tier updates from fee management events based on the timing of trades. Aggregate all trading activity by day to get total daily trading volume in USD.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` from swap events, `reserve0`, `reserve1` from sync events, `fee` from fee management events, `price_usd` from price feeds

### Component B: Total value locked calculation
- **Purpose**: Calculate the total USD value of liquidity provided to SyncSwap pools
- **Logic**: Track reserve changes using sync events that record the current reserves of both tokens in each pool. For each day, identify the final reserve balances at the end of the day using the last sync event. Calculate daily reserve changes by comparing each day's ending reserves to the previous day's ending reserves. For the first day a pool exists, use the full reserve balance as the initial deposit. Convert reserve changes to USD values using end-of-day price feeds for both tokens. Sum the USD values of both token reserve changes to get net deposits for each day. Accumulate net deposits over time to derive the running total value locked (TVL). This represents the cumulative value of liquidity deposited minus any withdrawals.
- **Key fields**: `reserve0`, `reserve1` from sync events, `price_usd` from price feeds, calculated `net_deposits` and accumulated `tvl`

### Component C: Pool identification and metadata
- **Purpose**: Identify all trading pairs and their characteristics for proper data processing
- **Logic**: Extract pool creation events from both Classic and Stable pool factories to identify all valid trading pairs. Map token addresses to their metadata including decimal places and symbols. Handle special case where native ETH is represented by a specific address but should be treated as WETH for pricing and calculations. Assign product categories (Classic pool vs Stable pool) and fee tiers. Create human-readable pool names by combining token symbols.
- **Key fields**: `token0`, `token1`, `pool` addresses from creation events, `decimals`, `symbol` from token metadata

### Component D: Dynamic fee tracking
- **Purpose**: Apply correct fee tiers to trades based on when fee changes occurred
- **Logic**: Track fee tier updates from fee manager events that can change swap fees and protocol fees for individual pools. Create a timeline of fee changes with start and end ranges. For each trade, determine which fee tier was active at the time of the trade by matching the trade timing to the appropriate fee period. Apply the current fee tier to trades, defaulting to the initial fee tier set during pool creation if no updates have occurred.
- **Key fields**: `fee` from fee update events, `block_number` and `log_index` for timing determination

### Final aggregation
- **Combining components**: Join the daily trading volume and TVL calculations on the same date and protocol dimensions (chain, product type, version)
- **Currency conversion**: All USD conversions use end-of-day price feeds matched to the specific date and token, with zero values used when prices are unavailable
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day level, with last-value logic applied for reserve balances within each day
- **Final calculation**: Divide daily trading volume by TVL for the same day to calculate the liquidity turnover ratio. The result represents how many times the protocol's total liquidity was traded on that specific day

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

Trading volume divided by total liquidity.

SyncSwap

Liquidity turnover

Liquidity turnover

Competitive landscape