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 Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) for zkSwap represents the total USD value of assets deposited in zkSwap v1 liquidity pools on zkSync Era. The metric answers the question: "How much value is currently locked in zkSwap's decentralized exchange?" TVL is calculated by tracking net deposits (deposits minus withdrawals) across all trading pairs and converting them to USD values using end-of-day price feeds.

## 2. Data sources

The calculation uses several raw data sources:
- **zkSync Era blockchain events**: Parsed `PairCreated` events from the zkSwap v1 Factory contract and `Sync` events from individual Pair contracts
- **Token metadata**: Token symbol, decimal precision, and identifier information for proper amount calculations
- **End-of-day price feeds**: Daily USD prices for tokens traded on zkSwap to enable currency conversion
- **Chain availability data**: zkSync Era network operational status and data availability windows

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identifies all zkSwap v1 liquidity pools and their constituent tokens
- **Logic**: Processes `PairCreated` events from the zkSwap v1 Factory contract on zkSync Era. Each event contains the pair contract address and the two token addresses (`token0` and `token1`) that form the trading pair. Joins with token metadata to retrieve decimal precision and symbols for each token. Creates human-readable pool names by combining token symbols with a hyphen separator.
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name` (token symbol combination)

### Component B: Reserve tracking
- **Purpose**: Captures changes in liquidity pool reserves over time
- **Logic**: Processes `Sync` events emitted by zkSwap Pair contracts whenever liquidity changes occur. These events contain `reserve0` and `reserve1` values representing the current token balances in each pool. Events are joined with trading pair data to associate reserves with specific token addresses and decimal information. Raw reserve amounts are converted to proper decimal representation by dividing by 10^token_decimals.
- **Key fields**: `block_timestamp`, `account_address` (pair contract), `reserve0_amount`, `reserve1_amount` (decimal-corrected)

### Component C: Daily asset flow calculation
- **Purpose**: Computes daily changes in pool reserves to determine net deposit flows
- **Logic**: Aggregates reserve data to daily boundaries by taking the last reserve values within each day for each pool using window functions. Calculates day-over-day changes by subtracting the previous day's reserves from the current day's reserves using lag functions. For the first day of data, uses the full reserve amount as the initial deposit. Handles cases where no activity occurs on a given day by defaulting to the day's ending reserve balance.
- **Key fields**: `timestamp` (daily), `token0_amount` (daily change), `token1_amount` (daily change)

### Component D: USD conversion and net deposits
- **Purpose**: Converts token amounts to USD and calculates total net deposits
- **Logic**: Joins daily asset flows with end-of-day price feeds based on timestamp, token address, and chain to get USD prices for both tokens in each pair. Multiplies token amounts by their respective USD prices and sums the results to get total USD value of net deposits per pool per day. Uses the `calculate_dex_net_deposits` macro to handle DEX-specific logic for computing deposit flows from reserve changes.
- **Key fields**: `net_deposits` (USD value of daily flows per pool)

### Final aggregation
- **Combining components**: Sums net deposit values across all zkSwap trading pairs to get total daily net deposits for the entire protocol
- **Currency conversion**: Uses end-of-day token price feeds to convert token amounts to USD values, with zero prices used as fallback for tokens without price data
- **Time aggregation**: Daily boundary logic based on timestamp truncation, with last-value window functions to capture end-of-day reserve states
- **Final calculation**: TVL equals the net deposits value, representing the cumulative USD value of assets deposited into zkSwap pools. The `finalize_metric_tvl` macro applies schema validation, ensures proper data structure, and fills any gaps in the time series with zeros where appropriate

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

zkSwap FinanceZF

Total value locked

Total value locked

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