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 Supply-side fees Methodology

## 1. Overview

Supply-side fees measures the share of transaction fees generated by Uniswap that is distributed to liquidity providers and service providers. This metric is utilized to represent the primary incentive for supply-side participants to allocate capital to Uniswap liquidity pools. Prior to the activation of the protocol fee switch, all collected swap and flash loan fees are allocated to the supply side. Following the activation of the protocol fee switch, supply-side fees are calculated as total fees minus the protocol's retained revenue.

## 2. Data sources

- **Blockchain events**: `PairCreated` events and `setFeeTo` function calls from `Factory` contracts, `Swap` events from `Pair` contracts, `PoolCreated`, `Swap`, `Flash`, and `SetFeeProtocol` events from `Pool` contracts, `Initialize`, `Swap`, and `ProtocolFeeUpdated` events from `PoolManager` contracts, and transaction data on Unichain, covering Ethereum, Arbitrum, Base, Polygon, and 12 other chains
- **External data**: End-of-day price feeds for assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Pool and trading pair identification

- **Purpose**: To identify active liquidity pools, trading pairs, and their associated metadata.
- **Logic**: Active pools and trading pairs are identified using `PairCreated` events from `Factory` contracts (Uniswap V2), `PoolCreated` events from `Factory` contracts (Uniswap V3), and `Initialize` events from `PoolManager` contracts (Uniswap V4). Asset metadata, including symbols and decimal precision, is joined to each pool. Denylisted trading pairs are flagged and excluded from subsequent calculations.
- **Key fields**: `account_address`, `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `fee_tier`

### Component B: Uniswap V2, Uniswap V3, and Uniswap V4 trade volume calculation

- **Purpose**: To calculate the daily USD trading volume across Uniswap V2, Uniswap V3, and Uniswap V4 pools.
- **Logic**: `Swap` events are parsed from `Pair` contracts (Uniswap V2), `Pool` contracts (Uniswap V3), and `PoolManager` contracts (Uniswap V4). Denylisted trading pairs are excluded. For each swap, the change in asset balances is extracted. Amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. To prevent price manipulation distortions, the daily trading volume is calculated using the lesser USD value of the two swapped assets.
- **Key fields**: `token0_amount`, `token1_amount`, `price_usd`

### Component C: Uniswap V3 flash loan volume calculation

- **Purpose**: To calculate the daily USD volume of flash loans executed on Uniswap V3.
- **Logic**: `Flash` events are parsed from `Pool` contracts (Uniswap V3). Denylisted trading pairs are excluded. The flash loan amounts for both assets are extracted, normalized by decimal precision, and converted to USD using end-of-day price feeds. The total flash loan volume is calculated as the sum of the USD values of both assets.
- **Key fields**: `token0_amount`, `token1_amount`, `price_usd`

### Component D: Unichain gas fee calculation

- **Purpose**: To calculate the gas fees generated on Unichain.
- **Logic**: Transaction data is parsed from Unichain. L2 gas fees are calculated by multiplying gas used by the gas price, and L1 gas fees are calculated by multiplying L1 gas used, L1 gas price, and the L1 fee scalar. Both fee components are normalized by decimal precision, summed, and converted to USD using end-of-day price feeds.
- **Key fields**: `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component E: Total fee calculation

- **Purpose**: To calculate the total fees generated across all Uniswap products.
- **Logic**: For Uniswap V2, Uniswap V3, and Uniswap V4, trading volumes and flash loan volumes are multiplied by their respective pool fee tiers to determine swap and flash loan fees. For Unichain, gas fees are added directly. All fee components are aggregated daily by chain and product.
- **Key fields**: `trading_volume`, `flash_loan_volume`, `fee_tier`, `fees`

### Component F: Protocol revenue and split calculation

- **Purpose**: To determine the portion of fees retained by the protocol as revenue.
- **Logic**: Protocol fee splits 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, if a fee recipient address is set, a 1/6 split is applied to the swap fee. For Uniswap V3, the split is determined by the protocol fee setting. For Uniswap V4, the split is determined by directional protocol fee rates (zero-for-one or one-for-zero) applied based on the trade direction. Prior to the activation of the protocol fee switch on December 27, 2025, protocol revenue is set to zero. After this date, protocol revenue is calculated by multiplying the trading volume by the fee tier and the protocol revenue split.
- **Key fields**: `revenue_split`, `trading_volume`, `fee_tier`

### Component G: Supply-side fee aggregation

- **Purpose**: To calculate the final supply-side fees.
- **Logic**: Supply-side fees are calculated by subtracting protocol revenue from total fees. Prior to the fee switch activation, supply-side fees equal 100% of total fees. Daily values are aggregated with UTC day boundaries.
- **Key fields**: `fees`, `revenue`, `fees_supply_side`

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

Portion of fees distributed to service providers or supply-side participants.

UniswapUNI

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown