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).

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Exchanges (DEX)

zkSwap Finance

# zkSwap Finance Trade count Methodology

## 1. Overview

The zkSwap trade count metric measures the number of distinct trading transactions executed on the zkSwap decentralized exchange (DEX) on zkSync Era, aggregated on a daily basis. This metric answers the business question: "How many individual trades occur on zkSwap each day?" The calculation identifies unique trades by counting distinct transaction hashes that contain swap events from zkSwap v1 pair contracts.

## 2. Data sources

The metric relies on the following raw data sources:
- **Blockchain events**: Parsed zkSwap v1 `Pair_Swap_event` logs from zkSync Era, which record individual swap transactions with token amount changes
- **Factory events**: Parsed zkSwap v1 `Factory_PairCreated_event` logs from zkSync Era, which establish the mapping between trading pair contracts and their underlying token addresses  
- **Transaction data**: zkSync Era transaction records that provide user address information and transaction metadata
- **Token metadata**: Token information including decimals and symbols for proper amount normalization and pair identification
- **External data**: End-of-day token price feeds for USD conversion (used in intermediate processing but not directly in trade counting)

## 3. Step-by-step calculation

### Component A: Raw trade extraction
- **Purpose**: Extract individual swap events from zkSwap v1 trading pairs on zkSync Era
- **Logic**: The system processes parsed `Pair_Swap_event` logs from zkSwap v1 pair contracts. For each swap event, it calculates the net token amount changes by subtracting `amount0Out` from `amount0In` for the first token and `amount1Out` from `amount1In` for the second token. The events are joined with zkSync Era transaction records to obtain the user's wallet address (`from_address`) while preserving the contract-level sender address from the swap event
- **Key fields**: `transaction_hash` (unique trade identifier), `log_index` (event position), `block_timestamp` (execution time), `address` (trading pair contract), `sender` (contract user), `amount0In/Out` and `amount1In/Out` (token flow amounts)

### Component B: Trading pair metadata enrichment  
- **Purpose**: Map trading pair contracts to their underlying token addresses and obtain token metadata
- **Logic**: The system extracts trading pair information from `Factory_PairCreated_event` logs, which contain the pair contract address and its associated `token0` and `token1` addresses. This mapping is enriched with token metadata to obtain decimal places for each token and create human-readable pair names by concatenating token symbols. Fee tiers are calculated by dividing raw fee values by one million
- **Key fields**: `account_address` (pair contract), `token0_address` and `token1_address` (underlying tokens), `token0_decimals` and `token1_decimals` (for amount normalization), `account_name` (symbol-based pair name), `fee_tier` (normalized fee rate)

### Component C: Trade processing and volume calculation
- **Purpose**: Process raw trades with proper decimal correction and prepare data for counting
- **Logic**: Raw trades are joined with trading pair metadata to apply decimal correction by dividing token amounts by 10 raised to the power of each token's decimal places. The system converts both tokens to USD values using end-of-day price feeds and applies a price manipulation filter by taking the lesser of the two USD amounts. Trades are aggregated to daily granularity while preserving transaction-level identifiers needed for counting
- **Key fields**: `timestamp` (daily boundary), `transaction_hash` (preserved for counting), `log_index` (preserved for uniqueness), `token0_amount` and `token1_amount` (decimal-corrected), `trading_volume` (USD value for validation)

### Final aggregation
- **Combining components**: The processed trade data flows into the final trade count calculation, which groups trades by day and counts distinct transaction hashes within each daily period
- **Currency conversion**: Not applicable for trade counting (USD conversion occurs in intermediate processing for validation purposes)
- **Time aggregation**: Daily boundaries are established using timestamp truncation to day level, with trades grouped by the daily timestamp
- **Final calculation**: The metric value is calculated by counting distinct `transaction_hash` values per day, where each unique transaction hash represents one trade regardless of how many individual swap events it may contain. The `finalize_metric_trade_count` macro standardizes the output format with business metadata including market sector identification as "exchanges", business segment as "dex", and proper time grain labeling

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

Number of trades executed on a decentralized exchange.

zkSwap FinanceZF

Trade count

Trade count

Competitive landscape