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 Revenue Methodology

## 1. Overview

SyncSwap revenue represents the total USD value of fees earned by the SyncSwap protocol on ZkSync Era. The metric combines two primary revenue streams: trading fees from AMM swaps and fees from flash loans. Revenue is calculated by multiplying trading volumes by applicable fee rates and summing flash loan fees, with all amounts converted to USD using end-of-day price feeds.

## 2. Data sources

The calculation relies on several categories of raw blockchain and external data:

- **Blockchain events**: Parsed ZkSync Era event logs including `Swap` events from Classic and Stable pool contracts, `PoolCreated` events from factory contracts, fee management events (`SetPoolSwapFee` and `SetPoolProtocolFee`), and `FlashLoan` events from Vault contracts
- **Transaction data**: ZkSync Era transaction records containing user addresses and transaction context
- **Token metadata**: Token information including decimal precision and symbol data for proper amount calculations
- **External data**: End-of-day token price feeds for USD conversion of all revenue components

## 3. Step-by-step calculation

### Component A: Trading pair configuration
- **Purpose**: Establishes the fee structure and trading pair details for all SyncSwap pools
- **Logic**: Extracts pool creation events from both Stable and Classic pool factories on ZkSync Era. Each pool has a configured fee tier (swap fee charged to users) and protocol fee tier (percentage of swap fees retained by protocol). Fee tiers are stored as basis points and converted to decimal percentages by dividing by 100,000. Classic pools have a 200 basis point (0.2%) fee tier while Stable pools have a 40 basis point (0.04%) fee tier. Both pool types have a 50,000 basis point (50%) protocol fee tier, meaning the protocol retains 50% of all swap fees. Token addresses are normalized, replacing ETH addresses with WETH addresses for consistency
- **Key fields**: `account_address` (pool contract), `token0_address` and `token1_address` (trading pair tokens), `fee_tier` (swap fee percentage), `protocol_fee_tier` (protocol's share percentage)

### Component B: Trade data collection
- **Purpose**: Captures all swap transactions and their associated token amounts across SyncSwap pools
- **Logic**: Processes `Swap` events from both Classic and Stable pool contracts, extracting the net change in token amounts for each trade. For each swap, calculates `token0_amount` as the difference between input and output amounts for token0, and similarly for `token1_amount`. Joins with ZkSync Era transaction data to identify the originating user address. Trade amounts represent the absolute change in token balances during each swap
- **Key fields**: `account_address` (pool contract), `token0_amount` and `token1_amount` (net token changes), `user_address` (transaction originator), `block_timestamp` (trade timing)

### Component C: Dynamic fee tracking
- **Purpose**: Tracks changes to fee tiers and protocol fee tiers over time for accurate revenue calculations
- **Logic**: Monitors fee management events that update swap fees and protocol fees for specific pools. Creates a time-ordered sequence of fee changes using block number and log index to generate unique identifiers. For each fee update, calculates the next update ID to establish time ranges during which specific fee rates apply. This allows the system to apply the correct fee rates to trades based on when they occurred relative to fee changes
- **Key fields**: `account_address` (affected pool), `fee_tier` or `protocol_fee_tier` (new fee rate), `id` and `next_id` (time range boundaries)

### Component D: Flash loan data collection
- **Purpose**: Captures flash loan transactions and associated fees charged by the protocol
- **Logic**: Processes `FlashLoan` events from the Vault contract, extracting the loan amount and fee amount for each flash loan. Joins with ZkSync Era transaction data to identify users. Flash loan fees represent direct revenue to the protocol, charged as a percentage of the borrowed amount
- **Key fields**: `token_address` (borrowed token), `amount` (loan amount), `fee_amount` (protocol fee charged), `user_address` (borrower)

### Component E: Trading volume calculation
- **Purpose**: Converts raw trade data into USD-denominated trading volumes with appropriate fee rates applied
- **Logic**: Aggregates trade data daily and joins with trading pair configuration to obtain fee tier information. Applies any dynamic fee updates by matching trade timing with fee change events. Corrects token amounts for decimal precision by dividing by 10^token_decimals. Converts both token amounts to USD using end-of-day price feeds, then takes the minimum USD value between the two tokens to calculate trading volume. This minimum approach prevents price manipulation attacks where one token's price might be artificially inflated. Applies both the fee tier (total swap fee) and protocol fee tier (protocol's share) to determine protocol revenue from each trade
- **Key fields**: `trading_volume` (USD value of trade), `fee_tier` (applicable swap fee rate), `protocol_fee_tier` (protocol's revenue share)

### Component F: Flash loan volume calculation
- **Purpose**: Converts flash loan data into USD-denominated fee revenue
- **Logic**: Aggregates flash loan data daily, correcting fee amounts for token decimal precision by dividing by 10^token_decimals. Converts fee amounts to USD using end-of-day price feeds. The resulting fees represent direct revenue earned by the protocol from flash loan operations
- **Key fields**: `fees` (USD value of flash loan fees earned by protocol)

### Final aggregation
- **Combining components**: Unions trading fee revenue (calculated as trading_volume × fee_tier × protocol_fee_tier) with flash loan fee revenue. Both components contribute equally to total protocol revenue
- **Currency conversion**: All revenue components are converted to USD using end-of-day price feeds matched to the transaction date and token address
- **Time aggregation**: Revenue is aggregated daily using timestamp truncation to day boundaries. All transactions within a calendar day contribute to that day's revenue total
- **Final calculation**: Total daily revenue equals the sum of (trading volume × swap fee rate × protocol fee share) across all trades plus the sum of all flash loan fees, with both components converted to USD

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

SyncSwap

Revenue

Revenue

Competitive landscape

Chain breakdown