# Uniswap V2 Trading volume Methodology

## 1. Overview

Trading volume is measured as the total USD value of all trades executed on Uniswap V2. This metric is utilized as a key indicator of liquidity, user activity, and market share for the decentralized exchange. Because trading fees are generated as a percentage of trade execution size, trading volume is directly correlated with the protocol's capacity to generate supply-side fees and protocol revenue. Volume is aggregated on a daily basis across all supported deployments of Uniswap V2.

## 2. Data sources

- **Blockchain events**: `PairCreated` events 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 and asset metadata

## 3. Step-by-step calculation

### Component A: Trading pair and pool identification

- **Purpose**: Identify active Uniswap V2 liquidity pools and their associated assets
- **Logic**: `PairCreated` events from `Factory` contracts are parsed to extract pool addresses, `token0` addresses, and `token1` addresses. These pools are mapped to their respective chains and assigned a standard fee tier of 0.3%. Denylisted pool addresses, identified due to limited price feed support or low liquidity, are filtered out using a predefined denylist.
- **Key fields**: `account_address` (pool address), `token0_address`, `token1_address`

### Component B: Trade event extraction and normalization

- **Purpose**: Extract raw trade amounts from swap transactions
- **Logic**: `Swap` events from `Pair` contracts are parsed to capture asset flows. For each swap, the net change for each asset is calculated by subtracting the outgoing amount from the incoming amount (specifically, `amount0In` minus `amount0Out` for `token0`, and `amount1In` minus `amount1Out` for `token1`). These raw asset amounts are then normalized by dividing by their respective decimal precision retrieved from asset metadata.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`

### Component C: Price outlier filtering

- **Purpose**: Filter out anomalous trades and potential manipulation
- **Logic**: Normalized asset amounts for both legs of each trade are multiplied by their daily end-of-day USD prices. A price band filter is applied to compare the USD value of both legs; if the values diverge by more than 100x (where the absolute log10 of the ratio of the two legs exceeds 2), the trade is flagged as a price outlier and excluded from the volume calculation. Trades involving assets without active price feeds are bypassed and remain unfiltered.
- **Key fields**: `amount_0`, `amount_1`, `price_usd`

### Component D: USD valuation and final aggregation

- **Purpose**: Value trades in USD and aggregate daily volume
- **Logic**: The USD value of each trade is determined by taking the lower value of the two transaction legs. An exception is applied if exactly one leg is classified as a tokenized stock, in which case the trade is valued solely on the tokenized stock leg to prevent distortion from unpriced counterparties. The validated USD trade values are then aggregated by day, chain, and product using UTC day boundaries.
- **Key fields**: `trading_volume`, `timestamp`, `chain_id`, `product_id`

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

Total value of spot trades executed on the exchange.

Trading volume

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

Trading volume

Trading volume

Chain breakdown