Liquidity providers deposit funds into Verse and receive trading fees from traders (supply-side fees).

Verse is an automated market maker-based decentralized exchange built on Ethereum. Verse was created by Bitcoin.com, and launched in 2022.

VERSE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Verse's investors include Blockchain.com, KuCoin Ventures and others.

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Verse

# Verse Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures the efficiency of capital utilization in VerseX DEX pools by calculating the ratio of daily trading volume to total value locked (TVL). This metric indicates how many times the liquidity in pools is "turned over" through trading activity, with higher values suggesting more efficient capital usage. The calculation divides daily trading volume by TVL, where both components are measured in USD.

## 2. Data sources

The calculation relies on several Ethereum blockchain data sources and external feeds:
- **Swap events**: Parsed Ethereum `Swap` events from VerseX trading pairs that record token amounts exchanged in each trade
- **Reserve synchronization events**: Parsed `Sync` events that track real-time reserve levels for both tokens in each trading pair
- **Pair creation events**: `PairCreated` events from the VerseX factory contract that establish trading pair relationships and token addresses
- **Transaction records**: Ethereum transaction data providing user addresses and timestamps for trade attribution
- **End-of-day token price feeds**: USD price data for tokens to enable currency conversion
- **Token metadata**: Token symbol and decimal information needed for amount normalization

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculates daily USD trading volume across all VerseX pools
- **Logic**: Extract trade data from `Swap` events, where each event contains `amount0In`, `amount0Out`, `amount1In`, and `amount1Out` fields. Calculate net token amounts as the difference between in and out amounts (taking absolute values). Normalize amounts using token decimal metadata by dividing by 10^decimals. Join with trading pair metadata to get token addresses. Aggregate trades daily by summing normalized amounts. Convert to USD by multiplying token amounts by end-of-day price feeds. To prevent price manipulation, use the minimum USD value between token0 and token1 calculations for each trade
- **Key fields**: `token0_amount` and `token1_amount` (normalized), `trading_volume` (USD), `fee_tier` (hardcoded as 0.003 or 0.3%)

### Component B: Total value locked (TVL) calculation  
- **Purpose**: Calculates daily TVL representing total capital deposited in VerseX pools
- **Logic**: Track reserve changes using `Sync` events that emit current `reserve0` and `reserve1` amounts for each pool. Normalize reserve amounts using token decimals. For each day, identify the last reserve update per pool using window functions. Calculate daily net changes by taking the difference between current day reserves and previous day reserves using lag functions. For the first day of a pool, use the absolute reserve amount. Convert token amounts to USD using end-of-day price feeds. Sum USD values across all tokens and pools to get total TVL
- **Key fields**: `reserve0_amount` and `reserve1_amount` (normalized), `token0_amount` and `token1_amount` (daily changes), `net_deposits` (USD)

### Final aggregation
- **Combining components**: The liquidity turnover is calculated by dividing daily trading volume by TVL for each day. Both metrics are sourced from their respective calculation chains and joined on timestamp
- **Currency conversion**: All amounts are converted to USD using end-of-day token price feeds, with missing prices treated as zero value
- **Time aggregation**: Calculations use daily boundaries with timestamp truncation to day level. Reserve changes use last-value semantics within each day
- **Final calculation**: The final metric is the simple ratio of trading volume divided by TVL, expressed as a decimal. A fill_zeros strategy is applied to ensure continuous daily data points where missing values are filled with zero

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

Trading volume divided by total liquidity.

VerseVERSE

Liquidity turnover

Liquidity turnover

Competitive landscape