Traders exchange funds through request for quotation system built on 0x protocol and aggregated AMMs. Tokenlon collects a trading fee (revenue) from trades.

Tokenlon is a non-custodial exchange protocol built on Ethereum. Tokenlon was founded by imToken team and launched in 2018.

LON tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Tokelon's investors include IDG Capital, Qiming Venture Partners, Breyer Capital, etc.

governance

github

twitter

discord

etherscan

website

DEX aggregators

Tokenlon

# Tokenlon Trading volume Methodology

## 1. Overview

Tokenlon trading volume measures the total USD value of trades executed through Tokenlon's DEX aggregator protocol on a daily basis. The metric captures trading activity across multiple Tokenlon contract versions and event types on Ethereum and Arbitrum chains. The calculation aggregates swap volumes from various trading mechanisms including automated market maker (AMM) wrappers, professional market maker (PMM) fills, request-for-quote (RFQ) executions, and limit order fills. To ensure accuracy, the methodology applies price manipulation protection by using the lesser USD value between token pairs in each trade.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum and Arbitrum event logs from Tokenlon smart contracts, including `AMMWrapper_Swapped`, `AMMWrapperWithPath_Swapped`, `PMM_FillOrder`, `RFQ_FillOrder`, `LimitOrder_LimitOrderFilledByProtocol`, and `ZeroExchange_Fill` events
- **Transaction data**: Ethereum and Arbitrum transaction records containing sender addresses and transaction metadata
- **Token metadata**: Token contract information including decimal places and symbol names for proper amount normalization
- **External data**: End-of-day token price feeds for USD conversion across all supported tokens

## 3. Step-by-step calculation

### Component A: Trade event extraction and standardization
- **Purpose**: Extracts and standardizes trade data from multiple Tokenlon contract versions and event types across Ethereum and Arbitrum
- **Logic**: Processes six different event types from Tokenlon v1 contracts on both chains. For Ethereum, extracts data from `ZeroExchange_Fill` events with specific filtering for Tokenlon fee recipient or taker addresses (`0xb9e29984fe50602e7a619662ebed4f90d93824c7`). For other event types, processes `AMMWrapper_Swapped`, `AMMWrapperWithPath_Swapped`, `PMM_FillOrder`, `RFQ_FillOrder` events from Ethereum and `LimitOrder_LimitOrderFilledByProtocol` events from Arbitrum. Normalizes native token addresses (like `0x0000000000000000000000000000000000000000`) to their wrapped equivalents (WETH on Ethereum: `0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`, WETH on Arbitrum: `0x82af49447d8a07e3bd95bd0d56f35241523fbab1`)
- **Key fields**: Extracts `block_timestamp`, `transaction_hash`, `log_index`, contract `address`, token addresses for both sides of trades, token amounts, and categorizes all as DEX Aggregator business line with exchanges market sector

### Component B: Transaction context enrichment  
- **Purpose**: Enriches trade events with transaction-level context to identify actual users
- **Logic**: Joins trade events with corresponding transaction records using `transaction_hash` to obtain the `from_address` as the user address. This distinguishes between contract addresses executing trades and the actual users initiating transactions
- **Key fields**: Adds `user_address` field from transaction `from_address` while preserving all trade event details

### Component C: Daily volume aggregation and decimal normalization
- **Purpose**: Aggregates trade volumes by day and applies proper decimal correction using token metadata
- **Logic**: Groups trades by day using timestamp truncation, preserving transaction hash and log index for granular tracking. Joins with token metadata to obtain decimal places and symbol information for both tokens in each trade pair. Applies decimal correction by dividing raw token amounts by 10 raised to the power of token decimals. Sums corrected token amounts within each group to handle multiple fills of the same trade
- **Key fields**: Creates `timestamp` (daily), `token0_amount` and `token1_amount` (decimal-corrected), `account_name` (token symbol pair), and maintains all business categorization fields

### Component D: USD conversion with price manipulation protection
- **Purpose**: Converts token amounts to USD values while protecting against price manipulation attacks
- **Logic**: Joins both tokens in each trade with end-of-day price feeds matching on timestamp, token address, and chain. Calculates USD values by multiplying decimal-corrected token amounts with corresponding USD prices. Applies price manipulation protection by taking the lesser (LEAST function) of the two USD values calculated for each token pair, defaulting to zero if either price is unavailable
- **Key fields**: Creates `trading_volume` field containing the final USD value using the lesser amount between token pairs to prevent inflated volumes from manipulated prices

### Final aggregation
- **Combining components**: All trade volumes are summed at the daily level across all Tokenlon contract versions and chains, maintaining business line categorization as DEX Aggregator
- **Currency conversion**: Uses end-of-day token prices for USD conversion with price manipulation protection via LEAST function selection
- **Time aggregation**: Daily boundaries using timestamp truncation to day level with 'day' grain specification
- **Final calculation**: The final trading volume represents the total USD value of legitimate trades executed through Tokenlon's DEX aggregator, with gaps filled using zero values and proper metric schema validation applied through the finalize_metric_trading_volume macro

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

Total value of spot trades executed on the exchange.

TokenlonLON

Trading volume

Trading volume

Competitive landscape

Chain breakdown