# Uniswap V3 Trade count Methodology

## 1. Overview

Trade count measures the number of distinct swap transactions executed on Uniswap V3. This metric is utilized to evaluate user engagement, trading frequency, and liquidity pool utilization over time. By monitoring the frequency of transaction execution, overall market activity and demand for assets within the protocol are analyzed.

## 2. Data sources

- **Blockchain events**: `Swap` and `SetFeeProtocol` events from `Pool` contracts, and `PoolCreated` events from `Factory` contracts, combined with transaction data from native blockchain `transactions` tables, covering Ethereum, Arbitrum, Optimism, Polygon, and 11 other chains

## 3. Step-by-step calculation

### Component A: Trading pool identification

- **Purpose**: Identify valid Uniswap V3 liquidity pools and their associated assets
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to extract pool addresses, asset addresses, and fee tiers. These pools are matched against asset metadata to retrieve decimal configurations. Denylisted trading pairs are identified and excluded to prevent low-liquidity or bad data from skewing the metrics.
- **Key fields**: `pool_address`, `token0_address`, `token1_address`

### Component B: Swap event extraction and filtering

- **Purpose**: Extract individual swap transactions and filter out invalid data
- **Logic**: `Swap` events from `Pool` contracts are parsed to capture transaction hashes, log indices, and pool addresses. These events are joined with the identified pools and the native blockchain `transactions` tables to verify transaction success and extract sender addresses. Transactions associated with denylisted pools are filtered out.
- **Key fields**: `transaction_hash`, `log_index`, `pool_address`, `sender_address`

### Component C: Trade count aggregation and finalization

- **Purpose**: Aggregate distinct trades and format the final metric
- **Logic**: The distinct transaction hashes are counted and aggregated on a daily granularity using UTC day boundaries. The aggregated daily trade counts are processed to ensure schema consistency, validate chain and protocol identifiers, and apply a zero-filling strategy for days with no trading activity.
- **Key fields**: `timestamp`, `chain_id`, `trade_count`

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

Number of trades executed on a decentralized exchange.

Trade count

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

Trade count

Trade count

Chain breakdown