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 Average trading volume (per trade) Methodology

## 1. Overview

Trading volume average per trade count measures the average USD value per trade on the Trader Joe decentralized exchange. This metric provides insight into trade size distribution and market behavior by dividing total daily trading volume by the number of trades executed. It helps identify whether trading activity consists of many small trades or fewer large trades, which is valuable for understanding market liquidity and user behavior patterns.

## 2. Data sources

The calculation relies on comprehensive blockchain event data and external price information:
- **Trader Joe swap events**: Parsed `Swap` events from multiple protocol versions including v1 `Pair_Swap_event` logs from BSC and Avalanche, v2.0 `LBPair_Swap_event` logs from Arbitrum, BSC and Avalanche, v2.1 `LBPairV2_Swap_event` logs from Ethereum, Arbitrum, BSC and Avalanche, and v2.2 `LBPairV22_Swap_event` logs from Arbitrum and Avalanche
- **Trading pair creation events**: `PairFactory_PairCreated_event` and `LBFactory_LBPairCreated_event` logs that establish valid trading pairs and token relationships
- **Protocol fee events**: `LBFactory_FeeParametersSet_event` logs for tracking protocol fee sharing parameters in v2 implementations
- **Transaction records**: Native transaction data from Ethereum, Arbitrum, BSC, and Avalanche containing sender addresses and transaction metadata
- **Token price feeds**: End-of-day USD price data for all tokens traded on Trader Joe across supported chains
- **Token metadata**: Token information including decimal places and symbols for proper amount calculations and pair naming

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Establishes the universe of valid Trader Joe trading pairs across all protocol versions and chains
- **Logic**: Extracts trading pair creation events from factory contracts, capturing token addresses and pair contract addresses for each protocol version. Joins with token metadata to obtain decimal places and symbols, then constructs human-readable pair names. Excludes denylisted pairs with limited price feed support to ensure data quality
- **Key fields**: `account_address` for pair contracts, `token0_address` and `token1_address` for the traded tokens, `token0_decimals` and `token1_decimals` for amount corrections, and `account_name` for pair identification

### Component B: Raw trade data extraction
- **Purpose**: Captures individual swap transactions from all Trader Joe protocol versions
- **Logic**: Processes swap events differently for each protocol version due to varying data structures. Version 1 calculates token amounts by subtracting output amounts from input amounts. Version 2.0 uses trade direction flags to determine which token is being bought or sold. Versions 2.1 and 2.2 use JavaScript decoding functions to unpack compressed amount parameters that combine both token amounts in single fields. Joins swap events with transaction records to obtain user addresses and filters out denylisted trading pairs
- **Key fields**: `token0_amount` and `token1_amount` representing net changes in each token, `block_timestamp` for temporal grouping, and `account_address` for pair identification

### Component C: Volume calculation with price protection
- **Purpose**: Converts raw token amounts to USD values while preventing price manipulation
- **Logic**: Aggregates trade data to daily granularity and joins with trading pair metadata to apply decimal corrections by dividing raw amounts by 10 raised to the token's decimal places. Joins with end-of-day price feeds for both tokens in each pair. Calculates USD values for both sides of each trade, then takes the lesser of the two values as the final trading volume to prevent manipulation through extreme price differences. This approach ensures that trades with unreliable price data for one token don't inflate volume metrics
- **Key fields**: `trading_volume` representing the USD value of trading activity, `timestamp` for daily aggregation, and `chain` for multi-chain support

### Component D: Trade count calculation
- **Purpose**: Counts the number of distinct trades per day
- **Logic**: Uses the same consolidated trade data but focuses on counting unique transactions rather than calculating volumes. Groups by daily timestamps and counts distinct transaction hashes to determine the number of individual trades executed. Applies the same chain and time filtering as the volume calculation to ensure consistency
- **Key fields**: `trade_count` representing the number of unique trades, `timestamp` for daily boundaries, and `transaction_hash` for uniqueness identification

### Final aggregation
- **Combining components**: The trading volume metric and trade count metric are calculated separately using the same underlying trade data, then joined on timestamp to ensure alignment. Both metrics use identical filtering and aggregation logic to maintain consistency
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds, with the minimum price protection applied during volume calculation to prevent manipulation
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with all trades within a 24-hour period contributing to that day's metrics
- **Final calculation**: The average trading volume per trade is computed using safe division of total daily trading volume by total daily trade count, which prevents division by zero errors and returns null for days with no trading activity

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

LFJJOE

Average trading volume (per trade)

Average trading volume (per trade)

Competitive landscape