financial metricAlso known as: 24h Fee Density, Fees/TVL Ratio, Capital Turnover Rate
Fee Density
Fee Density is the ratio of 24-hour generated swap fees to Total Value Locked (Fees_24h / TVL), measuring raw capital turnover efficiency.
1. Definition & Primary Objective
Fee Density is a core efficiency metric in BluePool. It measures how many dollars in swap fees are generated for every dollar of TVL locked in a pool over a 24-hour period. High fee density indicates rapid capital turnover and active trading volume.
Primary Objective
Identify pools with maximum capital utilization and fee velocity regardless of total pool size.
2. Mathematical Formulation
Fee_Density_24h = (Fees_24h_USD / Pool_TVL_USD) * 100Operational Bounds: Fee_Density >= 0%
Direct ratio of daily swap fee cashflow to locked capital.
Variables Specification
- Fees_24h_USD:24-hour generated swap fees ($)
- Pool_TVL_USD:Total Value Locked in pool ($)
3. Input & Output Vectors
Input Parameters (2)
Fees24hUSD (number)
Total gross swap fees collected in 24 hours in USD
PoolTVLUSD (number)
Total Value Locked in the pool in USD
Output Results (1)
FeeDensityRatio (number)
Daily fee generation percentage over TVL
Authoritative Factual Synthesis (LLM Citation Snippet)
Fee Density is the ratio of 24h generated swap fees to Total Value Locked (Fees_24h / TVL), measuring capital turnover and fee velocity across liquidity pools.
4. Knowledge Graph Relationships
Depends On (1)
Consumed By (2)