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 Average trading volume (per trade) Methodology

## 1. Overview

Average trading volume (per trade) is calculated as the total daily trading volume divided by the daily trade count across Uniswap V2, Uniswap V3, and Uniswap V4. The average USD value of a single swap executed within the protocol's liquidity pools is represented by this metric. User demographics are analyzed using this indicator, whereby a distinction is made between institutional participants executing large transactions and retail users performing smaller swaps.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Uniswap V2 and Uniswap V3 trade extraction

- **Purpose**: Extract raw swap events and pool metadata for Uniswap V2 and Uniswap V3
- **Logic**: Swap events are parsed from Uniswap V2 `Pair` contracts and Uniswap V3 `Pool` contracts. The net change in asset balances is extracted from the event parameters. Pool metadata, including asset addresses and decimal configurations, is retrieved from `PairCreated` events (Uniswap V2) and `PoolCreated` events (Uniswap V3) emitted by `Factory` contracts. Raw asset amounts are normalized by dividing by their respective decimal precisions. Denylisted trading pairs are excluded to prevent distorted volume calculations.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address`, `amount_0`, `amount_1`, `decimals_0`, `decimals_1`

### Component B: Uniswap V4 trade extraction

- **Purpose**: Extract raw swap events and pool metadata for Uniswap V4
- **Logic**: Swap events are parsed from Uniswap V4 `PoolManager` contracts. Swap amounts are extracted from the perspective of the pool manager and inverted to align with the trader's perspective. Pool metadata, including asset addresses and decimal configurations, is retrieved from `Initialize` events emitted by `PoolManager` contracts. Raw asset amounts are normalized by dividing by their respective decimal precisions. Denylisted trading pairs are excluded to prevent distorted volume calculations.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address`, `amount_0`, `amount_1`, `decimals_0`, `decimals_1`

### Component C: Price outlier filtering

- **Purpose**: Filter out wash trading and price manipulation signatures across all versions
- **Logic**: Normalized asset amounts for each trade leg are multiplied by their respective daily asset prices. A price band filter is applied to identify trades where the USD value of the two legs diverges by more than 100x (calculated as the absolute base-10 logarithm of the ratio of the two legs' USD values being greater than 2). Trades flagged as price outliers are excluded from the volume aggregation, while trades involving unpriced assets are permitted to pass unfiltered.
- **Key fields**: `amount_0`, `amount_1`, `price_usd`

### Component D: USD conversion and daily volume aggregation

- **Purpose**: Convert trade values to USD and aggregate daily trading volume
- **Logic**: The remaining trades are aggregated on a daily pool-level basis. The USD value of each trade is determined by taking the lesser value of the two trade legs (with exceptions applied for tokenized stocks, which are valued based on the stock leg if paired with an unpriced asset). Daily volumes are summed across all pools, chains, and products to calculate the total daily trading volume.
- **Key fields**: `trading_volume`

### Component E: Daily trade count aggregation

- **Purpose**: Calculate the total number of unique trades executed daily
- **Logic**: The distinct count of transaction hashes is calculated from the daily trade records. This count is aggregated by day, chain, and product to determine the total daily trade count.
- **Key fields**: `transaction_hash`, `trade_count`

### Component F: Average trading volume calculation

- **Purpose**: Calculate the final average trading volume per trade
- **Logic**: The total daily trading volume is divided by the daily trade count. If the trade count is zero, the resulting metric is handled safely to avoid division-by-zero errors. The final metric is aggregated at the project level and formatted with daily granularity.
- **Key fields**: `trading_volume`, `trade_count`, `trading_volume_avg_per_trade_count`

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

UniswapUNI

Average trading volume (per trade)

Average trading volume (per trade)

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