# Uniswap V3 Fees Methodology

## 1. Overview

Fees measures the total value paid by users to interact with Uniswap V3 liquidity pools. These fees are paid by traders executing swaps and by borrowers executing flash loans. Collected fees are primarily distributed to liquidity providers as compensation for provisioning assets, though a portion may be allocated to the protocol treasury if the protocol fee switch is enabled. Fees are calculated by applying pool-specific fee tiers to trading and flash loan volumes, which are then converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts, and `Swap`, `Flash`, and `SetFeeProtocol` events from `Pool` contracts, covering Ethereum, Arbitrum, Optimism, Polygon, and 11 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pool registration and fee tier extraction

- **Purpose**: Identify active Uniswap V3 pools and their associated fee tiers
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to extract pool addresses, asset addresses, and pool fee tiers. Fee tiers are normalized by dividing the raw fee value by one million. Denylisted pools with limited price feed support are excluded from the dataset to maintain data quality.
- **Key fields**: `pool` (pool address), `token0` (asset 0 address), `token1` (asset 1 address), `fee` (raw fee tier)

### Component B: Trading volume calculation

- **Purpose**: Calculate the USD value of swap transactions
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract swap amounts for asset 0 and asset 1. Swap amounts are normalized by decimal precision using asset metadata. To prevent price manipulation and ensure data integrity, the trading volume for each swap is calculated as the minimum USD value between the two swapped asset legs, using end-of-day price feeds.
- **Key fields**: `amount0` (asset 0 swap amount), `amount1` (asset 1 swap amount), `price_usd` (end-of-day asset prices)

### Component C: Flash loan volume calculation

- **Purpose**: Calculate the USD value of flash loans executed through the pools
- **Logic**: `Flash` events from `Pool` contracts are parsed to extract flash loan amounts for asset 0 and asset 1. Flash loan amounts are normalized by decimal precision. The total flash loan volume is calculated by summing the USD values of both loaned assets, converted using end-of-day price feeds.
- **Key fields**: `amount0` (asset 0 loan amount), `amount1` (asset 1 loan amount), `price_usd` (end-of-day asset prices)

### Component D: Fee aggregation and USD conversion

- **Purpose**: Calculate and aggregate total fees generated by Uniswap V3
- **Logic**: Trading fees are calculated by multiplying the USD trading volume of each pool by its normalized fee tier. Flash loan fees are calculated by multiplying the USD flash loan volume of each pool by its normalized fee tier. Both fee components are summed daily per pool and chain. Daily boundaries are defined using UTC timestamps.
- **Key fields**: `trading_volume` (USD trading volume), `flash_loan_volume` (USD flash loan volume), `fee_tier` (normalized pool fee tier)

*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 V3

Fees

Fees

Chain breakdown