# Uniswap V3 Flash loan volume Methodology

## 1. Overview

Flash loan volume is defined as the total value of assets borrowed and repaid within the same transaction through Uniswap V3. This metric is utilized to assess the volume of short-term, uncollateralized debt facilitated by the protocol's liquidity pools, which typically correlates with arbitrage-based activity and fee generation. By analyzing flash loan volume, pool utilization and the efficiency of capital deployment can be evaluated.

## 2. Data sources

- **Blockchain events**: `Flash` events from `Pool` contracts, and transaction metadata from transaction tables, covering Ethereum, Arbitrum, Optimism, Polygon, and 10 other chains
- **External data**: End-of-day price feeds for the borrowed assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Flash loan event extraction

- **Purpose**: Extract raw flash loan events and associate them with transaction senders
- **Logic**: `Flash` events from `Pool` contracts are parsed across all supported chains. These events are joined with transaction records to identify the transaction sender address. Pool addresses are filtered against a denylist of trading pairs to exclude low-liquidity assets with limited price feed support.
- **Key fields**: `block_timestamp`, `transaction_hash`, `address` (pool address), `sender` (contract user address), `amount0` (first asset amount), and `amount1` (second asset amount)

### Component B: Asset normalization and pool mapping

- **Purpose**: Map flash loan events to pool metadata and normalize asset amounts
- **Logic**: Flash loan records are joined with trading pair metadata to retrieve the contract addresses and decimal precisions for both assets in the pool. Asset amounts are normalized by their respective decimal precisions.
- **Key fields**: `token0_address`, `token1_address`, `token0_decimals`, and `token1_decimals`

### Component C: USD valuation and aggregation

- **Purpose**: Convert normalized asset amounts to USD and aggregate daily volumes
- **Logic**: Normalized asset amounts are multiplied by their respective end-of-day asset prices. The USD values of both assets are summed to calculate the total flash loan volume per transaction. These values are aggregated to a daily granularity using UTC day boundaries. Missing days are zero-filled to ensure data continuity.
- **Key fields**: `price_usd` and `flash_loan_volume`

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

Total value of assets borrowed and repaid within the same transaction.

Flash loan 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 V3

Flash loan volume

Flash loan volume

Chain breakdown