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XSwap | Data Breakdowns

# XSwap Supply-side fees Methodology

## 1. Overview

Supply-side fees represent the trading and flash loan fees that accrue to liquidity providers on the xSwap decentralized exchange. xSwap distributes trading fees to liquidity providers as part of their tokenomics model. The metric is calculated by multiplying trading volumes and flash loan volumes by their respective fee tiers, then aggregating all fees across both v2 and v3 versions of the protocol on the XDC blockchain.

## 2. Data sources

- **XDC blockchain swap events**: Parsed `Swap` events from both v2 Pair contracts and v3 Pool contracts containing token amounts and trading activity
- **XDC blockchain flash loan events**: Parsed `Flash` events from v3 Pool contracts containing flash loan amounts and activity
- **XDC blockchain transaction records**: Transaction data providing user addresses and transaction context
- **XDC pool and pair creation events**: `PoolCreated` events from v3 Factory contracts and `PairCreated` events from v2 Factory contracts establishing fee tiers and token relationships
- **End-of-day token price feeds**: Daily USD price data for tokens involved in trading pairs
- **Token metadata**: Token contract information including decimal places and symbols for amount conversion
- **Trading pair denylist**: Predefined list of low-liquidity trading pairs excluded from calculations due to unreliable price feeds

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate USD trading volume for fee calculation across v2 and v3 protocols
- **Logic**: Extract `Swap` events from XDC blockchain, distinguishing between v2 Pair contracts and v3 Pool contracts. For v2, calculate token amounts using the difference between `amount0In` minus `amount0Out` and `amount1In` minus `amount1Out`. For v3, use direct `amount0` and `amount1` values from events. Join with trading pair metadata to obtain fee tiers (hardcoded 0.3% for v2, variable from pool creation for v3), token addresses, and decimal places. Convert token amounts from wei to human-readable format by dividing by 10^decimals. Convert both token amounts to USD using end-of-day price feeds matched by timestamp. Use the minimum USD value between the two tokens to prevent price manipulation. Aggregate volumes daily and group by fee tier.
- **Key fields**: `block_timestamp` for daily aggregation, `token0_amount` and `token1_amount` for volume calculation, `fee_tier` for fee calculation, `account_address` for trading pair identification

### Component B: Flash loan volume calculation  
- **Purpose**: Calculate USD flash loan volume for additional fee revenue from v3 pools
- **Logic**: Extract `Flash` events from XDC v3 Pool contracts only. Filter out trading pairs that appear in the denylist to exclude low-liquidity pairs with unreliable price feeds. Join with trading pair metadata to get token information and fee tiers. Convert token amounts from wei using decimal places. Convert both token amounts to USD using end-of-day price feeds. Unlike trading volume, sum both token USD values rather than taking the minimum, as flash loans involve borrowing both tokens. Aggregate volumes daily by transaction hash and log index before final summation.
- **Key fields**: `token0_amount` and `token1_amount` for flash loan volume, `fee_tier` for fee calculation, `account_address` for pool identification, `block_timestamp` for daily aggregation

### Component C: Trading pair metadata
- **Purpose**: Provide fee tier information and token details for volume calculations
- **Logic**: Combine pool creation events from both v2 and v3 factories. For v3, extract variable fee tiers from `PoolCreated` events by dividing the `fee` parameter by 10^6. For v2, apply a fixed 0.3% fee tier (3000/10^6). Extract token addresses for both tokens in each pair. Join with token metadata to get decimal places and symbols for amount conversion and pair naming.
- **Key fields**: `fee_tier` converted from basis points, `token0_address` and `token1_address` for pair identification, `token0_decimals` and `token1_decimals` for amount conversion

### Final aggregation
- **Combining components**: Sum trading fees (trading volume × fee tier) and flash loan fees (flash loan volume × fee tier) across all pools and versions
- **Currency conversion**: USD conversion performed at the volume level using end-of-day price feeds matched by timestamp and token address
- **Time aggregation**: Daily boundaries established by truncating block timestamps to day level, with data aggregated within each day
- **Final calculation**: Total supply-side fees equals the sum of all trading fees and flash loan fees, with the `finalize_metric_fees_supply_side` macro applied to structure the output, validate data consistency, and fill missing days with zero values

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

Portion of fees distributed to service providers or supply-side participants.

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Supply-side fees

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