Liquidity providers deposit funds into LFJ and receive trading fees from traders (supply-side fees).

LFJ (previously Trader Joe) is a non-custodial exchange protocol built on Avalanche (originally a fork of SushiSwap). LFJ was founded by an anonymous team and launched in 2021.

JOE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). LFJ's investors include Three Arrows Capital, DeFiance Capital, GBV Capital, Mechanism Capital, etc.

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# LFJ Trading volume Methodology

## 1. Overview

TraderJoe trading volume measures the total USD value of token swaps executed on the TraderJoe decentralized exchange across multiple blockchain networks. This metric aggregates daily trading activity from all TraderJoe protocol versions (V1, V2, V2.1, V2.2) and implements price manipulation protection by using the lesser USD value between trading pair tokens.

## 2. Data sources

- **Factory contract events**: Parsed `PairCreated` events from TraderJoe factory contracts across different protocol versions to identify all valid trading pairs on Ethereum, Arbitrum, BSC, and Avalanche networks
- **Swap events**: Parsed swap events from individual TraderJoe pair contracts, with different event schemas for each protocol version (`Pair_Swap_event` for V1, `LBPair_Swap_event` for V2, `LBPairV2_Swap_event` for V2.1, `LBPairV22_Swap_event` for V2.2)
- **Transaction data**: Blockchain transaction records from Ethereum, Arbitrum, BSC, and Avalanche to identify actual user addresses initiating trades
- **End-of-day price feeds**: Daily token price data in USD for converting trading volumes from native token amounts to USD values
- **Token metadata**: Token contract information including decimal places and symbols for proper amount calculations and pair naming
- **Fee parameter events**: Parsed `FeeParametersSet` events from TraderJoe V2+ factory contracts to determine protocol fee percentages over time

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identify all valid trading pairs across TraderJoe protocol versions
- **Logic**: Extract trading pair addresses from factory contract creation events. V1 uses `PairFactory_PairCreated_event` while V2+ versions use various `LBFactory_LBPairCreated_event` schemas. Join with token metadata to obtain decimal places for both tokens in each pair and create descriptive pair names in "TOKEN0-TOKEN1" format. Apply hardcoded denylist to exclude three Avalanche pairs with limited price feed support.
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name`

### Component B: Trade event extraction  
- **Purpose**: Extract individual trade events from pair contracts across all protocol versions
- **Logic**: For V1 trades, extract swap events and calculate net token amounts as the difference between inbound and outbound amounts for each token. For V2 trades, use trade direction boolean to split amounts between tokens. For V2.1 and V2.2, decode packed hex amount data using JavaScript functions to extract separate X and Y token amounts, then calculate net amounts as inbound minus outbound. Join all swap events with transaction data to identify actual user addresses.
- **Key fields**: `block_timestamp`, `account_address`, `token0_amount`, `token1_amount`, `user_address`, `transaction_hash`

### Component C: Fee tier calculation
- **Purpose**: Determine protocol fee percentages for V2+ revenue calculations  
- **Logic**: Extract fee parameter events from V2+ factory contracts to get protocol fee shares over time. Forward-fill missing values to ensure continuous fee tier data for all trading pairs. This data is used later for revenue calculations but not directly for trading volume.
- **Key fields**: `protocol_fee_tier`, `timestamp`, `account_address`

### Component D: Daily volume aggregation
- **Purpose**: Aggregate individual trades into daily trading volumes per pair
- **Logic**: Group all trade events by day and trading pair. Take absolute values of token amounts and divide by the appropriate decimal factor (10^decimals) to convert from wei to standard token units. Sum daily volumes for both tokens in each trading pair.
- **Key fields**: `timestamp` (daily), `token0_amount` (decimal corrected), `token1_amount` (decimal corrected)

### Final aggregation
- **Combining components**: Join daily trading volumes with end-of-day price feeds for both tokens in each pair to convert amounts to USD values
- **Currency conversion**: Multiply decimal-corrected token amounts by their respective USD prices from end-of-day price feeds
- **Price manipulation protection**: For each trading pair, take the lesser USD value between token0 and token1 to prevent inflated volumes from price manipulation or low-liquidity situations
- **Time aggregation**: Sum daily USD trading volumes across all trading pairs and chains, maintaining daily timestamp boundaries
- **Final calculation**: The final trading volume equals the sum of all daily pair-level USD volumes, where each pair's volume is the minimum of its two token values converted to USD

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

Total value of spot trades executed on the exchange.

LFJJOE

Trading volume

Trading volume

Competitive landscape

Chain breakdown