# Uniswap V2 Revenue Methodology

## 1. Overview

The portion of swap fees retained by Uniswap V2 is measured as Revenue, as determined by the protocol's take rate. The remaining fees are distributed to supply-side participants, such as liquidity providers. Earnings generated by the protocol from selling its automated market maker services are shown by this metric, before cost of revenue, token incentives, and operating expenses. For Uniswap V2, revenue is generated only when the global fee switch is activated by governance, through which a portion of the swap fees is redirected to a designated fee recipient.

## 2. Data sources

- **Blockchain events**: `PairCreated` events and `setFeeTo` function calls from `Factory` contracts, and `Swap` events from `Pair` contracts, covering Ethereum, Arbitrum, Base, Polygon, 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: Uniswap V2 pool and fee split initialization

- **Purpose**: Active Uniswap V2 liquidity pools are identified and the state of the protocol fee switch is tracked.
- **Logic**: `PairCreated` events from `Factory` contracts are parsed to identify active trading pairs, their constituent assets, and their default fee tier (0.30%). To determine the protocol revenue share, `setFeeTo` function calls from `Factory` contracts are tracked. If the designated fee recipient address is set to a non-zero address, the protocol revenue split is set to 1/6th (approximately 16.67%) of the total swap fee; otherwise, it is set to zero. These fee configurations are mapped to historical intervals so that accurate temporal application is ensured.
- **Key fields**: `pair` (pool address), `token0`, `token1`, `feeTo` (recipient address), `revenue_split`

### Component B: Uniswap V2 swap volume extraction and normalization

- **Purpose**: Swap activity is captured and the volume of assets traded is calculated.
- **Logic**: `Swap` events from `Pair` contracts are parsed to extract the raw amounts of assets exchanged. The net change for each asset in a swap is calculated using the difference between the incoming and outgoing amount fields. Raw asset amounts are normalized by decimal precision using asset metadata. To prevent distortion from price manipulation or low-liquidity pools, the trading volume is converted to USD using end-of-day price feeds, and the final swap volume is determined as the minimum USD value between the two swapped assets. Denylisted trading pairs are excluded from the calculation.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `price_usd`

### Component C: Uniswap V2 revenue calculation and aggregation

- **Purpose**: The protocol's share of fees is calculated and aggregated to daily USD values.
- **Logic**: Normalized swap volumes are multiplied by the pool's fee tier (0.30%) and the active protocol revenue split (either 1/6th or zero) for the calculation of daily revenue. Additionally, after the protocol fee switch date, revenue is calculated as 85% of total fees. Daily revenue values are aggregated by chain and product using UTC day boundaries.
- **Key fields**: `trading_volume`, `fee_tier`, `revenue_split`, `revenue`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

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

Revenue

Revenue

Chain breakdown