Liquidity providers deposit funds into zkSwap and receive trading fees from traders (supply-side fees). Traders receive token rewards for their trades through the Swap2Earn incentive program (token incentives).

zkSwap Finance is a non-custodial Swap-to-Earn DeFi exchange protocol built on zkSync Era (originally a fork of Uniswap). zkSwap Finance was founded by pseudonymous ThunderNoah, etc., and launched in 2023. 

ZF token holders own and govern the protocol via Snapshot vote. They currently take a cut of the total trading fees paid by traders (revenue).

governance

github

twitter

discord

etherscan

website

Exchanges (DEX)

zkSwap Finance

# Liquidity turnover Methodology

## Overview

Liquidity turnover measures trading volume relative to total liquidity on the decentralized exchange. It shows how efficiently liquidity is being used to facilitate trades.

## Data sources

- Smart contract events and program instructions capturing trading activity and liquidity changes
- End-of-day price feeds for USD valuation
- Asset metadata for decimal normalization

## Common calculation approaches

### Volume-to-TVL ratio calculation
Daily trading volume is divided by the total value locked (TVL) to produce a dimensionless ratio. For example, trading volume is aggregated from `Swap` events in Aerodrome's pools, while TVL is derived from the underlying asset balances. Similarly, volume is captured from Tokenlon swap events such as `AMMWrapper_Swapped` and `RFQ_FillOrder` to determine the turnover ratio.

### Multi-version liquidity tracking
Liquidity utilization is tracked across different protocol versions by aggregating data from multiple contract types. For instance, volume and liquidity data are extracted from PancakeSwap and KyberSwap V2 and V3 contracts, including `Swap`, `Mint`, and `Burn` events. This allows for a comprehensive efficiency measurement across concentrated and standard liquidity models.

### Instruction-based efficiency analysis
On Solana, trading activity and liquidity levels are tracked through program instructions. Swap instructions and vault balance changes are parsed from projects like Orca to calculate the turnover ratio. This approach ensures that capital efficiency is measured accurately within the account-based model of the Solana network.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

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

Trading volume divided by total liquidity.

zkSwap FinanceZF

Liquidity turnover

Liquidity turnover

Competitive landscape