# Uniswap V2 Fees Methodology

## 1. Overview

Fees measures the total value paid by users to execute swaps on Uniswap V2. These fees are paid to liquidity providers as compensation for facilitating trades, with a portion potentially allocated to the protocol treasury if the fee switch is enabled. This metric is critical for assessing the economic activity and fee-generation capacity of the Uniswap V2 protocol.

## 2. Data sources

- **Blockchain events**: `PairCreated` events from `Factory` contracts and `Swap` events from `Pair` contracts, covering Ethereum, Arbitrum, Optimism, Base, and 5 other chains
- **External data**: End-of-day price feeds for traded assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Trading pair and fee tier identification

- **Purpose**: Identify active Uniswap V2 liquidity pools and their associated fee parameters.
- **Logic**: `PairCreated` events from `Factory` contracts are parsed to identify deployed liquidity pool addresses, along with the addresses of the two underlying assets. A constant fee tier of 0.3% is assigned to all Uniswap V2 pools. Asset metadata is joined to retrieve decimal precision for each asset. Denylisted trading pairs are filtered out to prevent distorted calculations from low-liquidity assets.
- **Key fields**: `account_address`, `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `fee_tier`

### Component B: Swap volume extraction

- **Purpose**: Capture swap activity and calculate raw asset volumes per trade.
- **Logic**: `Swap` events from `Pair` contracts are parsed. The net change for each asset in the pool is calculated by subtracting the outgoing amount from the incoming amount. These raw amounts are normalized by the respective asset's decimal precision.
- **Key fields**: `token0_amount`, `token1_amount`

### Component C: USD valuation and price manipulation filtering

- **Purpose**: Convert asset volumes to USD while mitigating price manipulation.
- **Logic**: Normalized asset amounts are multiplied by end-of-day asset prices. To prevent distortion from price manipulation or low-liquidity pools, the trading volume for each swap is determined by taking the minimum (least) USD value between the two traded assets.
- **Key fields**: `price_usd`, `trading_volume`

### Component D: Fee calculation and aggregation

- **Purpose**: Calculate total fees and aggregate to daily granularity.
- **Logic**: Swap fees are calculated by multiplying the filtered USD trading volume by the pool's fee tier (0.3%). The calculated fees are aggregated by day, chain, and product using UTC day boundaries.
- **Key fields**: `fees`, `timestamp`

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Exchanges (DEX)

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.

Uniswap V2

Fees

Fees

Chain breakdown