# Acala DEX Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Acala DEX measures the aggregate value of all assets deposited into the protocol's liquidity pools and provisioning pools. This metric serves as a primary indicator of the liquidity available for decentralized trading on the Acala Substrate chain. TVL includes both active liquidity used for swaps and assets committed to pools during the bootstrapping phase.

## 2. Data sources

- **Blockchain events**: Liquidity and provision pool balances are retrieved from the `liquidityPool` and `provisioningPool` state endpoints on Acala Substrate
- **External data**: End-of-day price feeds for assets and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Acala DEX liquidity pool tracking

- **Purpose**: Capture the value of assets currently available for trading in active liquidity pools.
- **Logic**: Token balances for `balance0` and `balance1` are extracted from `liquidityPool` state data. Assets are identified and categorized by type, including native assets, foreign assets, and stable assets. All balances are normalized by their respective decimal precision as defined in asset metadata.
- **Key fields**: `token0_value`, `token1_value`, `balance0`, `balance1`

### Component B: Acala DEX provision pool tracking

- **Purpose**: Capture the value of assets deposited into pools that are in the provisioning or bootstrapping phase.
- **Logic**: Accumulated token amounts for `accumulated0` and `accumulated1` are extracted from `provisioningPool` state data. These deposits represent user-provided liquidity for pool pairs that have not yet reached the required threshold for active trading. Balances are normalized by decimal precision.
- **Key fields**: `token0_value`, `token1_value`, `accumulated0`, `accumulated1`

### Component C: LDOT valuation adjustment

- **Purpose**: Calculate an accurate exchange rate for the Liquid DOT (LDOT) asset used within the DEX pools.
- **Logic**: An internal exchange rate is derived by dividing the total underlying DOT backing the LDOT system (comprising bonded staking assets and assets in the bond pool) by the total issuance of LDOT (including voided liquid assets). This rate is applied to any LDOT balances found in the DEX pools to ensure valuation reflects the underlying collateral value.
- **Key fields**: `total_staking_bonded`, `to_bond_pool`, `total_issuance`, `total_void_liquid`

### Component D: USD conversion and final aggregation

- **Purpose**: Normalize all pool balances to USD and aggregate them into a single TVL metric.
- **Logic**: Normalized token balances from both liquidity and provision pools are multiplied by end-of-day price feeds. For LDOT-denominated assets, the adjustment factor calculated in Component C is applied. The total value is then aggregated by summing the USD values of all pool components on a daily basis using UTC day boundaries.
- **Key fields**: `price_usd`, `ldot_exchange_rate`

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Total value locked

Exchanges (DEX)

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Acala is a specialized stablecoin and liquidity blockchain powered by Polkadot Relay chain.

ACA holders own and govern the protocol. Acala’s investors include Pantera Capital, Coinbase Ventures, and Polychain Capital.

Acala DEX

Archived

Total value locked

Total value locked

Chain breakdown