# Uniswap V4 Trading volume Methodology

## 1. Overview

Trading volume is defined as the total USD value of trades executed on Uniswap V4. This metric is utilized as a key indicator of liquidity, user activity, and the overall utilization of the protocol's decentralized exchange infrastructure. Since trading fees are paid as a percentage of execution volume, trading volume directly correlates with the protocol's capacity to generate supply-side fees for liquidity providers and protocol revenue.

## 2. Data sources

- **Blockchain events**: `Initialize` and `Swap` events from `PoolManager` contracts, covering Ethereum, Arbitrum, Base, Optimism, and 7 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pool initialization and metadata

- **Purpose**: Active liquidity pools are identified and their asset pairs and decimal configurations are mapped.
- **Logic**: `Initialize` events from `PoolManager` contracts are parsed to extract pool identifiers, asset addresses, and hook addresses. If a pool is initialized with a null address for either asset, the address is replaced with the wrapped native asset address for the respective chain. Asset addresses are joined with asset metadata to retrieve decimal precision and symbols, which are used to construct canonical trading pair names and IDs.
- **Key fields**: `pool_id`, `currency0` (asset 0 address), `currency1` (asset 1 address), `hooks` (hooks address), and asset decimals.

### Component B: Trade extraction and normalization

- **Purpose**: Raw swap amounts are extracted and transaction directions are aligned.
- **Logic**: `Swap` events from `PoolManager` contracts are parsed to extract swap amounts and fee tiers. Because swap amounts are recorded from the perspective of the trader in Uniswap V4, the signs of the asset amounts are inverted to align with the contract-centric perspective used in previous protocol versions. Transactions are joined with native transaction records to resolve the transaction sender address, and pools matching denylisted trading pairs are excluded.
- **Key fields**: `pool_id`, `amount0` (asset 0 amount), `amount1` (asset 1 amount), `fee` (fee tier), and `transaction_hash`.

### Component C: Price outlier filtering

- **Purpose**: Wash trading and price manipulation anomalies are filtered out.
- **Logic**: Raw asset amounts are normalized by their respective decimal precision. Daily oracle prices are applied to both legs of each trade to calculate their USD values. Trades where the USD value of the two legs diverges by more than 100x (determined by an absolute log10 ratio greater than 2) are flagged as price outliers and excluded from the final dataset, while trades with unpriced assets are allowed to pass unfiltered.
- **Key fields**: `amount_0`, `amount_1`, and daily asset prices.

### Component D: USD valuation and aggregation

- **Purpose**: Normalized trade amounts are converted to USD and daily volume is aggregated.
- **Logic**: Normalized trade amounts are valued in USD using daily prices from primary price feeds, backup price feeds, or asset metrics prices. If exactly one leg of a trade is classified as a tokenized stock asset and has a positive volume, the trade is valued solely on that leg to prevent distortion from unpriced counterparty assets; otherwise, the trade is valued using the minimum of the USD values of the two legs. The final trading volume is aggregated by day, chain, and product, with a zero-filling strategy applied to ensure continuous daily data, and a chain availability filter is applied to exclude specified chains such as Blast.
- **Key fields**: `trading_volume`, `timestamp`, `chain_id`, and `product_id`.

*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 V4

Trading volume

Trading volume

Chain breakdown