# Uniswap V3 Revenue Methodology

## 1. Overview

Revenue measures the portion of swap fees that is retained by Uniswap V3, as determined by its protocol take rate. This metric represents the earnings generated by the protocol from facilitating asset swaps, before cost of revenue, token incentives, and operating expenses. Revenue is generated only when the protocol fee switch is active, with the remaining swap fees distributed to supply-side liquidity providers.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts, `SetFeeProtocol` and `Swap` events from `Pool` contracts, and transaction data, 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 identification and fee tier tracking

- **Purpose**: Identify active Uniswap V3 pools, their associated assets, and fee tiers
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to extract pool addresses, asset addresses, and fee tiers. Fee tiers are normalized by dividing the raw fee value by one million. Asset metadata is joined to retrieve decimal precision and symbols for each asset.
- **Key fields**: `address`, `token0`, `token1`, `fee`

### Component B: Protocol fee split tracking

- **Purpose**: Determine the protocol's share of swap fees for each pool over time
- **Logic**: `SetFeeProtocol` events from `Pool` contracts are parsed to capture changes in the protocol fee configuration. The protocol revenue split is calculated as the reciprocal of the new protocol fee value. These splits are structured into intervals using the block number and log index to determine the active split for any given trade.
- **Key fields**: `address`, `feeProtocol0New`, `block_number`, `log_index`

### Component C: Swap volume extraction and normalization

- **Purpose**: Extract swap amounts and calculate USD-denominated trading volume
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract swap amounts for both assets. Swap events are joined with pool metadata to normalize asset amounts by their decimal precision. Daily trading volumes are converted to USD using end-of-day price feeds. To mitigate price manipulation, the trading volume for each swap is calculated using the lesser USD value between the two swapped assets.
- **Key fields**: `address`, `amount0`, `amount1`, `price_usd`

### Component D: Revenue calculation

- **Purpose**: Calculate the protocol revenue generated from swap fees
- **Logic**: Revenue is calculated for swaps occurring on or after the protocol fee switch date. For these swaps, revenue is determined by multiplying the USD-denominated trading volume by the pool's fee tier and the active protocol revenue split. Alternatively, for certain configurations, revenue is calculated as 85% of the total fees. Values are aggregated daily and filtered to exclude denylisted trading pairs and chains with restricted availability.
- **Key fields**: `timestamp`, `trading_volume`, `fee_tier`, `revenue_split`

*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 V3

Revenue

Revenue

Chain breakdown