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 Trading volume Methodology

## 1. Overview

Trading volume is defined as the total value of trades executed on Uniswap across its Uniswap V2, Uniswap V3, and Uniswap V4 products. This metric is utilized as a key indicator of liquidity, market share, and overall economic activity. Since trading fees are paid by users on these transactions, trading volume is highly correlated with the protocol's capacity to generate fees and revenue.

## 2. Data sources

- **Blockchain events**: `PairCreated` events and `setFeeTo` function calls from `Factory` contracts, and `Swap` events from `Pair` contracts for Uniswap V2; `PoolCreated` events from `Factory` contracts, and `SetFeeProtocol` and `Swap` events from `Pool` contracts for Uniswap V3; and `Initialize`, `ProtocolFeeUpdated`, and `Swap` events from `PoolManager` contracts for Uniswap V4, covering Ethereum, Arbitrum, Base, Polygon, and 11 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trading pair registration

- **Purpose**: Identification and registration of valid liquidity pools and their associated assets.
- **Logic**: Pool addresses and asset pairs are identified by parsing `PairCreated` events from Uniswap V2 `Factory` contracts, `PoolCreated` events from Uniswap V3 `Factory` contracts, and `Initialize` events from Uniswap V4 `PoolManager` contracts. For each pool, the contract addresses and decimal precisions of both assets (asset 0 and asset 1) are extracted. Specific pools identified as low-liquidity or lacking reliable price feeds are filtered out using a predefined denylist.
- **Key fields**: `account_address` (pool address), `token0_address` (address of asset 0), `token1_address` (address of asset 1), `token0_decimals` (decimals of asset 0), `token1_decimals` (decimals of asset 1)

### Component B: Trade event extraction

- **Purpose**: Extraction of raw trade amounts from swap events across all protocol versions.
- **Logic**: Trade events are extracted by parsing `Swap` events from Uniswap V2 `Pair` contracts, Uniswap V3 `Pool` contracts, and Uniswap V4 `PoolManager` contracts. For Uniswap V2, raw asset amounts are calculated as the difference between the incoming and outgoing amounts for each asset. For Uniswap V3, raw amounts are extracted directly from the event parameters. For Uniswap V4, raw amounts are inverted to align the trader-centric perspective of the V4 contract with the pool-centric perspective of V2 and V3.
- **Key fields**: `block_timestamp`, `transaction_hash`, `amount0` (amount of asset 0), `amount1` (amount of asset 1)

### Component C: Price outlier filtering

- **Purpose**: Exclusion of wash trading, manipulation, and extreme pricing anomalies.
- **Logic**: Raw asset amounts are normalized by their respective decimal precisions and valued in USD using end-of-day price feeds. An oracle price band filter is applied to each trade by comparing the USD value of both legs. If the USD value of one leg diverges from the other by more than 100x (where the absolute log10 of the ratio of the two valued legs is greater than 2), the trade is flagged as a price outlier and excluded from the volume calculation. Trades containing unpriced assets are bypassed and allowed to pass through unfiltered.
- **Key fields**: `timestamp`, `price_usd` (asset price in USD)

### Component D: USD valuation and aggregation

- **Purpose**: Calculation of the final USD trading volume and aggregation to daily intervals.
- **Logic**: The final USD trading volume for each trade is determined based on the asset types involved. If a trade contains exactly one tokenized stock asset paired with an unpriced asset, the USD value of the tokenized stock asset leg is used as the trade's volume. For all other trades, the volume is calculated as the minimum of the USD values of the two legs. The validated trade volumes are then aggregated by day, pool, chain, and product using UTC day boundaries.
- **Key fields**: `trading_volume`, `timestamp_grain`

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

Total value of spot trades executed on the exchange.

UniswapUNI

Trading volume

Trading volume

Competitive landscape

Chain breakdown