Liquidity providers deposit funds into Zyberswap and receive trading fees from traders (supply-side fees).

Zyberswap is a non-custodial exchange protocol built on Arbitrum. Zyberswap was founded by anonymous team and launched in 2023.

ZYB tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Zyberswap

# Zyberswap Fees Methodology

## 1. Overview

ZyberSwap fees represent the total fees generated from trading and flash loan activities across ZyberSwap's v2 and v3 AMM exchanges on Arbitrum. The calculation multiplies trading volumes and flash loan volumes by their respective fee tiers to determine total fee revenue. This metric answers how much fee revenue ZyberSwap generates from its exchange operations, combining both traditional swap fees and flash loan fees into a comprehensive fee metric.

## 2. Data sources

The calculation relies on these underlying data sources:
- **Arbitrum blockchain event logs**: Parsed `Pair_Swap_event` logs from ZyberSwap v2 pairs and `AlgebraPool_Swap_event` logs from v3 pools for trading activity
- **Flash loan event logs**: Parsed `AlgebraPool_Flash_event` logs from v3 pools and `SwapFlashLoan_TokenSwap_event` logs from v2 for flash loan activity
- **Pool creation events**: Parsed `SwapDeployer_NewSwapPool_event`, `Factory_PairCreated_event`, and `AlgebraFactory_Pool_event` logs that establish trading pairs and their token compositions
- **Fee update events**: Parsed `AlgebraPool_Fee_event` and `AlgebraPool_CommunityFee_event` logs that track dynamic fee changes in v3 pools
- **Transaction data**: Arbitrum transaction records for user address identification and timestamp validation
- **Token metadata**: Token contract information including decimal places and symbols for proper amount calculation
- **End-of-day price feeds**: Daily token price data for USD conversion of volumes

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Establishes all valid trading pairs/pools where fee-generating activity occurs
- **Logic**: Extracts pool creation events from both v2 and v3 versions on Arbitrum. For v2, processes `SwapDeployer_NewSwapPool_event` and `Factory_PairCreated_event` logs to identify pair contracts and their constituent tokens. For v3, processes `AlgebraFactory_Pool_event` logs. Creates mappings between pool addresses and their token pairs, including token ordering and decimal information
- **Key fields**: Pool/pair `address`, `token0_address`, `token1_address`, token `decimals`, and trading pair `account_name`

### Component B: Trading volume calculation
- **Purpose**: Calculates USD-denominated trading volumes for fee calculation
- **Logic**: Extracts swap events from Arbitrum blockchain logs, processing `Pair_Swap_event` for v2 and `AlgebraPool_Swap_event` for v3. For v2 swaps, calculates net token flows using `amount0In` minus `amount0Out` and `amount1In` minus `amount1Out`. For v3 swaps, uses direct `amount0` and `amount1` values. Joins with transaction data to identify users and applies start date filter of 2023-01-23. Combines with trading pair data to correct token decimals and aggregates by day. Converts token amounts to USD using end-of-day price feeds and applies price manipulation protection by taking the lesser USD value between the two tokens in each trade
- **Key fields**: Daily `trading_volume` in USD, `fee_tier`, `token0_amount`, `token1_amount`, and pool `account_address`

### Component C: Flash loan volume calculation  
- **Purpose**: Calculates USD-denominated flash loan volumes for fee calculation
- **Logic**: Extracts flash loan events from `AlgebraPool_Flash_event` for v3 and `SwapFlashLoan_TokenSwap_event` for v2. Processes token amounts differently by version - v3 uses absolute values of `amount0` and `amount1`, while v2 uses `tokensSold` and `tokensBought` amounts. Joins with trading pair metadata for decimal correction and aggregates by day. Converts to USD using end-of-day price feeds. For v3, sums both token amounts for total volume. For v2, applies price manipulation protection using the lesser of the two token values
- **Key fields**: Daily `flash_loan_volume` in USD, flash loan `fee_tier`, and associated token amounts

### Component D: Fee tier determination
- **Purpose**: Applies appropriate fee rates to volumes based on exchange version and dynamic updates
- **Logic**: Uses fixed fee tiers for v2 operations - 0.25% for trading and 0.05% for flash loans. For v3 operations, retrieves dynamic fee tiers from `AlgebraPool_Fee_event` logs, matching fee updates to specific pools and blocks. Handles protocol fees separately with fixed 0.10% for v2 trading and 0.025% for v2 flash loans, while v3 protocol fees are calculated as a percentage of the base fee tier based on `AlgebraPool_CommunityFee_event` logs
- **Key fields**: Applied `fee_tier` and `protocol_fee_tier` values per transaction

### Final aggregation
- **Combining components**: Unions trading fees (calculated as trading volume multiplied by trading fee tier) with flash loan fees (calculated as flash loan volume multiplied by flash loan fee tier) into a single fee dataset
- **Currency conversion**: All volumes are converted to USD using end-of-day price feeds before fee calculation, ensuring consistent currency basis
- **Time aggregation**: Aggregates all fees by day using timestamp truncation to daily boundaries
- **Final calculation**: Sums all fee components (trading fees plus flash loan fees) grouped by timestamp, chain, market sector, business segment, and product dimensions. Applies final metric standardization using the `finalize_metric_fees` macro and chain availability filtering

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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