# Uniswap V3 Trading volume Methodology

## 1. Overview

Trading volume is defined as the total USD value of trades executed on Uniswap V3. This metric is utilized as a key indicator of the protocol's liquidity, market share, and overall activity across decentralized markets. Because trading fees are paid by users on every trade, trading volume is directly correlated with the protocol's capacity to generate fees and supply-side revenue for liquidity providers. Through the analysis of trading volume, the utilization and economic viability of Uniswap V3 pools are assessed by institutional investors.

## 2. Data sources

- **Blockchain events**: `PoolCreated` events from `Factory` contracts, `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: Uniswap V3 pool identification

- **Purpose**: Identify active Uniswap V3 liquidity pools and their associated assets.
- **Logic**: `PoolCreated` events from `Factory` contracts are parsed to extract pool addresses, asset addresses (`token0` and `token1`), and fee tiers. Asset metadata is joined to retrieve decimal precision and symbols for each asset. Pool addresses are cross-referenced against a static denylist of trading pairs with limited price feed support to ensure their exclusion from downstream calculations.
- **Key fields**: `account_address`, `token0_address`, `token1_address`, `fee_tier`, `token0_decimals`, `token1_decimals`

### Component B: Uniswap V3 trade event extraction

- **Purpose**: Capture individual swap transactions executed within Uniswap V3 pools.
- **Logic**: `Swap` events from `Pool` contracts are parsed to extract trade details. The raw amounts of both assets exchanged (`amount_0` and `amount_1`) are captured. Transaction sender addresses are joined from transaction logs to ensure the identification of the user executing the trade.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, `account_address`, `token0_amount`, `token1_amount`, `user_address`

### Component C: Price outlier filtering

- **Purpose**: Eliminate wash trading, manipulation, and highly divergent pricing anomalies.
- **Logic**: Raw asset amounts are normalized by their respective decimal precisions. Daily asset prices from end-of-day price feeds are joined to value both legs of each trade. A price band filter is applied to identify trades where the USD value of the two legs diverges by more than 100x (where the absolute log10 of the ratio of the USD values is greater than 2). Trades flagged as price outliers are excluded from the final aggregation, while trades with unpriced assets are allowed to pass through unfiltered.
- **Key fields**: `amount_0`, `amount_1`, `price_usd`

### Component D: USD valuation and aggregation

- **Purpose**: Convert trade amounts to USD and aggregate volume to daily intervals.
- **Logic**: For each valid trade, the USD trading volume is calculated. To prevent artificial volume inflation, the trade is valued as the minimum (least) of the USD values of the two legs. An exception is applied if exactly one leg of the trade is classified as a tokenized stock, in which case the trade is valued solely on the USD value of the tokenized stock leg. The resulting USD values are aggregated by day, chain, and pool address. Finally, a chain availability filter is applied to align the data with approved historical boundaries.
- **Key fields**: `trading_volume`, `timestamp`, `chain_id`, `pool_address`

*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 V3

Trading volume

Trading volume

Chain breakdown