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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zkSwap Finance

# zkSwap Finance Trading volume Methodology

## 1. Overview

zkSwap trading volume measures the total USD value of trades executed on the zkSwap v1 decentralized exchange on zkSync Era. This metric captures the daily trading activity by analyzing AMM swap events, converting token amounts to USD values, and applying price manipulation protection to ensure data quality.

## 2. Data sources

The calculation relies on several key data sources:
- **Swap events**: Parsed `Pair_Swap_event` logs from zkSwap v1 contracts on zkSync Era containing token amounts in and out for each trade
- **Pair creation events**: `Factory_PairCreated_event` logs that define trading pairs, token relationships, and fee tier structures
- **Transaction records**: zkSync Era transaction data used to identify the actual user addresses behind each trade
- **Token metadata**: Token information including decimal places and symbols for proper amount normalization
- **End-of-day price feeds**: Daily USD prices for tokens to enable currency conversion

## 3. Step-by-step calculation

### Component A: Trade extraction
- **Purpose**: Extract individual trades from zkSwap AMM swap events
- **Logic**: Parse `Pair_Swap_event` logs from zkSwap v1 contracts on zkSync Era. For each swap event, calculate the net change in both tokens by subtracting the `amount_out` from `amount_in` for both `token0` and `token1`. Join with zkSync Era transaction records to identify the actual user address (transaction sender) rather than just the contract interaction address. Each trade record includes the trading pair address, user addresses, and net token amounts.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` from swap events, `transaction_hash` and `log_index` for uniqueness, `from_address` from transactions for user identification

### Component B: Trading pair metadata
- **Purpose**: Define trading pair relationships and token properties
- **Logic**: Extract trading pair information from `Factory_PairCreated_event` logs to establish the relationship between pair contract addresses and their underlying tokens. For each pair, identify the `token0` and `token1` addresses and set the fee tier (zkSwap v1 uses 0% fees). Join with token metadata to get decimal places and symbols for both tokens in each pair. Create human-readable pair names by combining token symbols.
- **Key fields**: `pair` address, `token0` and `token1` addresses, token `decimals` and `symbols`, `fee_tier` set to 0

### Component C: Daily volume aggregation
- **Purpose**: Calculate daily trading volumes with proper decimal correction and USD conversion
- **Logic**: Join individual trades with trading pair metadata to get token addresses and decimal information. Aggregate trades by day, summing the absolute values of token amounts to capture total volume regardless of trade direction. Correct for token decimals by dividing amounts by 10 raised to the power of each token's decimal places. Convert both `token0` and `token1` amounts to USD using end-of-day price feeds matched by date, token address, and chain.
- **Key fields**: Daily `timestamp`, corrected `token0_amount` and `token1_amount`, `price_usd` from price feeds

### Final aggregation
- **Combining components**: Join the daily aggregated data with price feeds for both tokens in each trading pair
- **Currency conversion**: Convert token amounts to USD by multiplying corrected amounts with end-of-day prices from the price feeds
- **Price manipulation protection**: For each trade, take the lesser of the two USD values (`token0_usd` vs `token1_usd`) to filter out potential price manipulation or oracle errors where one token's price might be artificially inflated
- **Time aggregation**: Aggregate all trades within each daily period, summing the protected USD trading volumes across all trading pairs
- **Final calculation**: Sum daily trading volumes across all zkSwap v1 pairs on zkSync Era, apply zero-filling for days with no trading activity, and format according to Token Terminal's standard metric structure

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

Total value of spot trades executed on the exchange.

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Trading volume

Trading volume

Competitive landscape