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

Uniswap is a non-custodial exchange protocol built on Ethereum. Uniswap was founded by Hayden Adams and launched in 2018.

UNI tokenholders own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Uniswap's investors include Paradigm, a16z, USV, etc.

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Uniswap

# Uniswap Earnings Methodology

## 1. Overview

Earnings is calculated as the net value retained by Uniswap after all expenses, including cost of revenue and token incentives, are subtracted from protocol revenue. On-chain profitability is reflected across Uniswap V2, Uniswap V3, Uniswap V4, and Unichain. Protocol revenue is generated from swap fees when protocol fee switches are active, while expenses are comprised of liquidity mining incentives and revenue-sharing agreements, such as the fee split with Optimism on Unichain.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pair`, `Pool`, and `PoolManager` contracts; `setFeeTo` function calls from `Factory` contracts; `SetFeeProtocol` events from `Pool` contracts; `ProtocolFeeUpdated` events from `PoolManager` contracts; `RewardPaid` events from `StakingRewards` contracts; and `CampaignCreated` events from `Univ4MerklRouterOracle` contracts, covering Ethereum, Arbitrum, Optimism, Base, Arc, and 10 other chains
- **External data**: End-of-day price feeds for assets and asset metadata

## 3. Step-by-step calculation

### Component A: Uniswap V2, V3, and V4 trading volume tracking

- **Purpose**: Trading volume and swap fees are tracked across Uniswap V2, Uniswap V3, and Uniswap V4.
- **Logic**: `Swap` events are parsed from `Pair` contracts (Uniswap V2), `Pool` contracts (Uniswap V3), and `PoolManager` contracts (Uniswap V4). For each swap, the change in asset amounts is extracted. Trading volumes are calculated by multiplying the asset amounts by their respective end-of-day prices. To prevent distortion from price manipulation, the lower USD value between the two swapped assets is utilized as the trading volume.

### Component B: Uniswap V2, V3, V4, and Unichain protocol revenue calculation

- **Purpose**: The protocol's share of swap fees is determined based on active fee switches.
- **Logic**: Protocol fee switches are tracked using `setFeeTo` function calls from `Factory` contracts (Uniswap V2), `SetFeeProtocol` events from `Pool` contracts (Uniswap V3), and `ProtocolFeeUpdated` events from `PoolManager` contracts (Uniswap V4). For Uniswap V2, a 1/6 (approximately 16.67%) revenue split is applied to the 0.30% fee tier when the fee recipient address is set to a non-zero address. For Uniswap V3 and Uniswap V4, pool-specific revenue splits are applied based on the protocol fee settings emitted in the events. Protocol revenue is calculated by multiplying the trading volume by the fee tier and the active revenue split. For Unichain, protocol revenue is calculated as 85% of the total gas fees collected after the protocol fee switch date.

### Component C: Unichain cost of revenue tracking

- **Purpose**: The cost of revenue associated with Unichain operations is calculated.
- **Logic**: Gas fees on Unichain are calculated by summing the L1 and L2 gas fees from transaction data, where amounts are normalized by decimal precision and converted to USD. Prior to the fee split activation date, 100% of Unichain gas fees are classified as cost of revenue. After the activation date, a 15% fee split is allocated to Optimism as cost of revenue, with the remaining 85% retained as protocol revenue.

### Component D: Uniswap V2 and Unichain token incentives tracking

- **Purpose**: Liquidity mining and campaign incentives distributed by the protocol are captured.
- **Logic**: Liquidity incentives are extracted from `RewardPaid` events from `StakingRewards` contracts (Uniswap V2) and `CampaignCreated` events from `Univ4MerklRouterOracle` contracts (Unichain). Incentive amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. For campaigns spanning multiple days, the total incentive amount is divided by the campaign duration so that incentives are distributed daily.

### Component E: Final expenses and earnings aggregation

- **Purpose**: Revenue and expenses are combined to calculate net earnings.
- **Logic**: Total expenses are calculated by summing the cost of revenue and token incentives. Earnings are calculated as the difference when total expenses are subtracted from protocol revenue. All calculations are aggregated daily using UTC day boundaries, and missing days are filled with zeros.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

UniswapUNI

Earnings

Earnings

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