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 Liquidity turnover Methodology

## 1. Overview

Liquidity turnover measures how efficiently a decentralized exchange utilizes its total value locked (TVL) by dividing daily trading volume by daily TVL. This metric indicates how many times the locked liquidity "turns over" through trading activity. A higher ratio suggests more efficient capital utilization, while a lower ratio may indicate idle liquidity. The calculation combines trading activity from both Zyberswap v2 and v3 protocols on Arbitrum.

## 2. Data sources

- **Arbitrum blockchain event logs**: Parsed `Swap`, `Sync`, `Mint`, `Collect`, and `Flash` events from Zyberswap v2 and v3 smart contracts
- **Transaction data**: Arbitrum transaction records to link swap events to user addresses
- **Fee configuration events**: Dynamic fee updates from `AlgebraPool_Fee_event` and `AlgebraPool_CommunityFee_event` logs for v3 pools
- **Trading pair metadata**: Token addresses, decimals, and symbols from pool creation events
- **End-of-day price feeds**: USD price data for all tokens traded on the platform
- **Portfolio balance data**: Calculated holdings for specific treasury addresses in v2 flash asset flows

## 3. Step-by-step calculation

### Component A: Trading volume calculation
- **Purpose**: Calculate daily USD trading volume across all Zyberswap pools
- **Logic**: Extract swap events from both v2 `Pair_Swap_event` logs and v3 `AlgebraPool_Swap_event` logs on Arbitrum. For v2 swaps, calculate net token amounts as the difference between input and output amounts (`amount0In - amount0Out`, `amount1In - amount1Out`). For v3 swaps, use the direct `amount0` and `amount1` values. Apply absolute values to get trading volumes. Join with dynamic fee data - v3 pools use fees from `AlgebraPool_Fee_event` logs while v2 pools use a fixed 0.25% fee tier. Similarly, apply protocol fees from `AlgebraPool_CommunityFee_event` for v3 (calculated as fee_tier × protocol_fee_tier) and fixed 0.10% for v2. Correct token decimals using trading pair metadata, then convert both token amounts to USD using end-of-day price feeds. To prevent price manipulation, use the lesser USD value between token0 and token1 amounts for each trade. Aggregate all trades daily.
- **Key fields**: `amount0In`, `amount0Out`, `amount1In`, `amount1Out` from v2 swaps; `amount0`, `amount1` from v3 swaps; `fee_tier` and `protocol_fee_tier` for fee calculations

### Component B: Total value locked calculation  
- **Purpose**: Calculate daily TVL as cumulative net deposits into Zyberswap pools
- **Logic**: For v2 pools, track reserve changes using `Pair_Sync_event` logs that contain `reserve0` and `reserve1` amounts. Calculate daily reserve differences using lag functions to determine net flows. For v3 pools, combine multiple event types: add liquidity from `AlgebraPool_Mint_event` logs, subtract liquidity from `AlgebraPool_Collect_event` logs, include trading impacts from swap events, and add flash loan fees by multiplying flash loan amounts from `AlgebraPool_Flash_event` by the current fee tier. Also include v2 flash loans from `SwapFlashLoan_TokenSwap_event` logs. Apply decimal corrections using token metadata and convert all amounts to USD using end-of-day price feeds. Calculate net deposits as the sum of all inflows minus outflows, then compute cumulative TVL over time. Include additional v2 flash asset flows calculated from portfolio holdings of specific treasury addresses.
- **Key fields**: `reserve0`, `reserve1` from sync events; `amount0`, `amount1` from mint/collect events; `tokensSold`, `tokensBought` from flash loan events

### Final aggregation
- **Combining components**: Join daily trading volume and daily TVL data on timestamp, ensuring both metrics use the same daily boundaries and USD conversions
- **Currency conversion**: All token amounts converted to USD using end-of-day price feeds matched by timestamp, token address, and chain. Price conversion happens after decimal correction but before aggregation
- **Time aggregation**: All blockchain events aggregated to daily grain using `timestamp_trunc(block_timestamp, day)` to ensure consistent daily boundaries
- **Final calculation**: Daily liquidity turnover equals daily trading volume divided by daily TVL, providing a ratio that indicates how many times the locked liquidity was utilized for trading activity

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

Trading volume divided by total liquidity.

ZyberswapZYB

Liquidity turnover

Liquidity turnover

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