diff --git a/tycho/tycho/decoders.py b/tycho/tycho/decoders.py
index 73c1479..66646f3 100644
--- a/tycho/tycho/decoders.py
+++ b/tycho/tycho/decoders.py
@@ -1,9 +1,117 @@
-from tycho.tycho.models import EVMBlock
+from logging import getLogger
+from typing import Any
+
+from tycho.tycho.exceptions import TychoDecodeError
+from tycho.tycho.models import EVMBlock, ThirdPartyPool, EthereumToken
+from tycho.tycho.utils import decode_tycho_exchange
+
+log = getLogger(__name__)
 
 
 class ThirdPartyPoolTychoDecoder:
     """ThirdPartyPool decoder for protocol messages from the Tycho feed"""
 
-    def decode_snapshot(self, message, block: EVMBlock):
-        """Decode a message from the Tycho feed"""
-        pass
+    def __init__(self, adapter_contract: str, minimum_gas: int, hard_limit: bool):
+        self.adapter_contract = adapter_contract
+        self.minimum_gas = minimum_gas
+        self.hard_limit = hard_limit
+
+    def decode_snapshot(
+        self,
+        snapshot: dict[str, Any],
+        block: EVMBlock,
+        tokens: dict[str, EthereumToken],
+    ) -> tuple[dict[str, ThirdPartyPool], list[str]]:
+        pools = {}
+        failed_pools = []
+        for snap in snapshot.values():
+            try:
+                pool = self.decode_pool_state(snap, block, tokens)
+                pools[pool.id_] = pool
+            except TychoDecodeError as e:
+                log.error(f"Failed to decode third party snapshot: {e}")
+                failed_pools.append(snap["component"]["id"])
+                continue
+
+        return pools, failed_pools
+
+    def decode_pool_state(
+        self, snap: dict, block: EVMBlock, tokens: dict[str, EthereumToken]
+    ) -> ThirdPartyPool:
+        component = snap["component"]
+        exchange, _ = decode_tycho_exchange(component["protocol_system"])
+
+        try:
+            tokens = tuple(tokens[t] for t in component["tokens"])
+        except KeyError as e:
+            raise TychoDecodeError("Unsupported token", pool_id=component["id"])
+
+        balances = self.decode_balances(snap, tokens)
+        optional_attributes = self.decode_optional_attributes(component, snap)
+
+        return ThirdPartyPool(
+            id_=optional_attributes.pop("pool_id", component["id"]),
+            tokens=tokens,
+            balances=balances,
+            block=block,
+            spot_prices={},
+            trading_fee=Decimal("0"),
+            exchange=exchange,
+            adapter_contract_name=self.adapter_contract,
+            minimum_gas=self.minimum_gas,
+            hard_sell_limit=self.hard_limit,
+            db_type=DatabaseType.tycho,
+            trace=True,
+            **optional_attributes,
+        )
+
+    @staticmethod
+    def decode_optional_attributes(component, snap):
+        # Handle optional state attributes
+        attributes = snap["state"]["attributes"]
+        pool_id = attributes.get("pool_id") or component["id"]
+        balance_owner = attributes.get("balance_owner")
+        stateless_contracts = {}
+        index = 0
+        while f"stateless_contract_addr_{index}" in attributes:
+            address = attributes[f"stateless_contract_addr_{index}"]
+            code = attributes[f"stateless_contract_code_{index}"]
+            stateless_contracts[address] = code
+            index += 1
+        return {
+            "balance_owner": balance_owner,
+            "pool_id": pool_id,
+            "stateless_contracts": stateless_contracts,
+        }
+
+    def decode_balances(self, snap, tokens):
+        balances = {}
+        for addr, balance in snap["state"]["balances"].items():
+            checksum_addr = addr
+            token = next(t for t in tokens if t.address == checksum_addr)
+            balances[token.address] = token.from_onchain_amount(
+                int(balance, 16)  # balances are big endian encoded
+            )
+        return balances
+
+    def apply_update(
+        self,
+        pool: ThirdPartyPool,
+        pool_update: dict[str, Any],
+        balance_updates: dict[str, Any],
+        block: EVMBlock,
+    ) -> ThirdPartyPool:
+        # check for and apply optional state attributes
+        attributes = pool_update.get("updated_attributes")
+        if attributes:
+            # TODO: handle balance_owner and stateless_contracts updates
+            pass
+
+        for addr, balance_msg in balance_updates.items():
+            token = [t for t in pool.tokens if t.address == addr][0]
+            balance = int(balance_msg["balance"], 16)  # balances are big endian encoded
+            pool.balances[token.address] = token.from_onchain_amount(balance)
+        pool.block = block
+        # we clear simulation cache and overwrites on the pool and trigger a recalculation of spot prices
+        pool.clear_all_cache()
+        return pool
diff --git a/tycho/tycho/tycho_adapter.py b/tycho/tycho/tycho_adapter.py
index b90f337..ff4319e 100644
--- a/tycho/tycho/tycho_adapter.py
+++ b/tycho/tycho/tycho_adapter.py
@@ -12,7 +12,6 @@ from http.client import HTTPException
 from logging import getLogger
 from typing import Tuple, Any, Optional, Dict
 
-from eth_utils import to_checksum_address
 from protosim_py import (
     AccountUpdate,
     AccountInfo,
@@ -74,7 +73,6 @@ class TokenLoader:
         formatted_tokens = dict()
 
         for token in all_tokens:
-            token["address"] = to_checksum_address(token["address"])
             formatted = EthereumToken(**token)
             formatted_tokens[formatted.address] = formatted
 
@@ -102,6 +100,7 @@ class TychoPoolStateStreamAdapter:
         self,
         tycho_url: str,
         protocol: str,
+        decoder: ThirdPartyPoolTychoDecoder,
         blockchain: Blockchain,
         min_tvl: Optional[Decimal] = 10,
         min_token_quality: Optional[int] = 51,
@@ -122,6 +121,7 @@ class TychoPoolStateStreamAdapter:
         self.protocol = f"vm:{protocol}"
         self._include_state = include_state
         self._blockchain = blockchain
+        self._decoder = decoder
 
         # Create engine
         self._db = TychoDB(tycho_http_url=self.tycho_url)
@@ -245,8 +245,8 @@ class TychoPoolStateStreamAdapter:
         self._process_vm_storage(state_msg["snapshots"]["vm_storage"], block)
 
         # decode new pools
-        decoded_pools, failed_pools = ThirdPartyPoolTychoDecoder().decode_snapshot(
-            state_msg["snapshots"]["states"], block
+        decoded_pools, failed_pools = self._decoder.decode_snapshot(
+            state_msg["snapshots"]["states"], block, self._tokens
         )
 
         decoded_count += len(decoded_pools)