How the washTradingScore is determined

The washTradingScore is a metric used to determine the likelihood of wash trading activity for a particular transaction. Wash trading refers to the practice of artificially inflating trading volume by simultaneously buying and selling the same asset.

In the Reservoir Indexer, the washTradingScore is calculated by checking wallets that trade back and forth. We also manual blocklist collections and wallets with high wash trading. Treat the score as a rough estimation. The score returned will be either 0 or 1.

Please note a washTradingScore of 1 does not guarantee wash trading occurred, but the transaction exhibits a high likelihood of wash trading. It serves as an indicator to flag potentially suspicious trading activity for further analysis.