Liquidity providers deposit funds into Velodrome and stake their LP tokens to receive VELO tokens in proportion to their share of the votes (token incentives).

Velodrome is a non-custodial exchange protocol built on Optimism. Velodrome was founded by veDAO members and launched in 2022.

VELO tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue), while the pools' unstaked liquidity providers earn the remainder of the trading fees (supply-side fees).

github

twitter

discord

etherscan

website

Exchanges (DEX)

Velodrome

# Velodrome Average trading volume (per user) Methodology

## 1. Overview

Average trading volume (per user) is measured as the average USD trading volume generated per active user (daily) over a fixed 24-hour window. This metric is used to analyze user engagement and trading intensity on the Velodrome decentralized exchange protocol. The calculation is performed by dividing total daily trading volume by the count of unique active users (daily), with both components being derived from the same swap transaction data across all Velodrome protocol versions.

## 2. Data sources

- **Blockchain events**: `Swap` events from `Pair`, `Pool`, and `CLPool` contracts, and `PairCreated` and `PoolCreated` events from `PairFactory`, `Factory`, and `CLPoolFactory` contracts, combined with transaction records, covering Optimism
- **External data**: End-of-day asset price feeds, asset metadata (including symbols and decimals), and a configuration denylist of trading pairs with limited price feed support

## 3. Step-by-step calculation

### Component A: Trading volume calculation

- **Purpose**: Calculates total USD trading volume from swap events across all Velodrome protocol versions
- **Logic**: Swap events are extracted from three protocol versions with version-specific amount calculations. For V1 and V2, asset amounts are calculated as `amount0In` minus `amount0Out` and `amount1In` minus `amount1Out`. For Slipstream (V3), direct `amount0` and `amount1` fields are used. Events for V1 and V2 are filtered to include those from June 1, 2022 onward. Swap events are joined with transaction records to identify user addresses. Trading pair metadata from pool creation events is combined to obtain asset addresses and decimals. Denylisted trading pairs are excluded. Asset amounts are normalized by decimal precision. USD values are determined using end-of-day price feeds, where the lesser of the two asset USD values is selected to prevent price manipulation. Volumes are aggregated by day.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out`, `amount0`, `amount1`, `sender`, `from_address`, `token0_address`, `token1_address`, `decimals`, `price_usd`

### Component B: Daily active user count

- **Purpose**: Counts unique active users (daily) who performed swaps each day
- **Logic**: User addresses are extracted from the same swap transaction data used for trading volume. Unique daily users are identified by the transaction originator address (`from_address`), rather than the contract caller. Unique active users (daily) are aggregated to create dimensional breakdowns, including project-level aggregation. The project-level dimension is used to determine the overall protocol active users (daily).
- **Key fields**: `user_address`, `block_timestamp`

### Component C: Final aggregation and average calculation

- **Purpose**: Combines trading volume and active user metrics to calculate the average trading volume per user
- **Logic**: Daily trading volume totals are joined with active users (daily) on the same timestamp using the project-level dimension. USD conversion is performed at the asset level using end-of-day price feeds prior to aggregation, with anti-manipulation logic selecting the minimum USD value of the two assets in each swap. Both volume and user counts are aggregated to daily granularity using timestamp truncation to day boundaries. Total daily trading volume is divided by the active users (daily) count using safe division to handle cases where the active user count is zero, preventing division errors.

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

Average trading volume (per user)

Trading volume divided by daily active users.

VelodromeVELO

Average trading volume (per user)

Average trading volume (per user)

Competitive landscape