# ZeroFi Trading volume Methodology

## 1. Overview

Trading volume measures the total USD value of trades executed through the ZeroFi proprietary market maker on Solana. This metric is critical for assessing the protocol's transactional activity and its capacity to generate fees, as users pay trading fees on executed swaps. Since operations are conducted as a proprietary market maker quoting from its own inventory, trades are executed directly against the operator's inventory rather than traditional liquidity pools. The metric is calculated by valuing each trade at the lesser USD value of its two transaction legs to prevent distortions from price outliers.

## 2. Data sources

- **Blockchain events**: `InitMarket` and `InitMarketV2` instructions from `ZeroFi` programs, and trade records from Solana DEX programs, covering Solana
- **External data**: End-of-day price feeds and asset metadata for asset decimals, asset types, and USD valuation

## 3. Step-by-step calculation

### Component A: Pool metadata resolution

- **Purpose**: Identify canonical pool accounts, vault accounts, and associated asset accounts.
- **Logic**: `InitMarket` and `InitMarketV2` instructions from `ZeroFi` programs are parsed to extract pool accounts, `vault_a` accounts, and `vault_b` accounts. The mapping between vault accounts and asset mint accounts is resolved by analyzing historical trade records. Only pool accounts with fully resolved asset accounts for both vaults are retained.
- **Key fields**: `pool_address`, `vault_a`, `vault_b`, `token_address_0`, `token_address_1`

### Component B: Trade extraction and atomic round-trip filtering

- **Purpose**: Extract raw trade records and filter out non-economic wash trading.
- **Logic**: Raw trade records are extracted where the executing account matches the `ZeroFi` program. Atomic round-trip trades—where a trader executes offsetting swaps within a single transaction on a single pool and ends net-flat—are excluded. This is determined by calculating the net and gross flows for each asset in a transaction; if the ratio of absolute net flow to gross flow is below 1%, the trade is classified as a round trip and discarded.
- **Key fields**: `transaction_id`, `pool_address`, `base_amount`, `quote_amount`, `base_mint_address`, `quote_mint_address`

### Component C: Decimal normalization and asset mapping

- **Purpose**: Normalize trade amounts and align them with canonical pool assets.
- **Logic**: Raw trade amounts are normalized by the decimal precision of their respective assets. Normalized trade amounts are then mapped to the canonical pool assets (`token_address_0` and `token_address_1`) by comparing the trade's asset accounts with the resolved pool metadata. The trade direction is flagged to indicate whether the swap flowed from asset A to asset B.
- **Key fields**: `base_amount`, `quote_amount`, `amount_0`, `amount_1`, `a_to_b`

### Component D: USD valuation and outlier mitigation

- **Purpose**: Convert trade amounts to USD and apply valuation rules to handle price outliers.
- **Logic**: Normalized trade amounts for both legs of each swap are multiplied by their respective end-of-day asset prices. To mitigate the impact of price outliers or illiquid assets, the trade is valued at the lesser USD value of its two legs. However, if exactly one leg of the trade is identified as a tokenized stock (using asset metadata), the trade is valued solely on that tokenized stock leg to prevent unpriced or newly launched counterparty assets from zeroing out the trade value.
- **Key fields**: `trading_volume_0`, `trading_volume_1`, `trading_volume`, `asset_type_0`, `asset_type_1`

### Component E: Daily aggregation

- **Purpose**: Aggregate trading volume to a daily granularity.
- **Logic**: Trading volumes are summed by day, chain, product, and pool. Missing days are zero-filled to ensure a continuous time series, and chain availability filters are applied to align the data with approved reporting periods.
- **Key fields**: `timestamp`, `timestamp_grain`, `chain_id`, `product_id`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume

Exchanges (DEX)

The operator posts its own inventory into on-chain vaults and quotes prices from the ZeroFi program, so every fill is against the operator rather than pooled liquidity-provider capital. It earns the spread embedded in its quotes; the swap instructions carry no separate fee field, and there is no governance token.

ZeroFi is a proprietary automated market maker (prop AMM) on Solana, live since December 2024. It has no public frontend and takes almost all of its order flow from DEX aggregators, primarily Jupiter, which route swaps to its pools when its quote is best.

ZeroFi is operated by a professional market-making team that has not disclosed its identity and publishes no website, documentation or social accounts.