Liquidity providers deposit funds into ApeSwap and receive trading fees from traders (supply-side fees).

ApeSwap is a non-custodial exchange protocol built originally on BNB Chain. ApeSwap was founded by an anonymous team and launched in 2021.

BANANA tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Exchanges (DEX)

ApeSwap

# ApeSwap Total value locked Methodology

## 1. Overview

ApeSwap TVL (Total Value Locked) measures the total USD value of assets deposited in ApeSwap's automated market maker (AMM) liquidity pools. The metric tracks daily changes in liquidity pool reserves across Ethereum, BSC, Arbitrum, and Polygon networks. TVL is calculated by monitoring reserve update events from liquidity pools, converting token amounts to USD values, and aggregating net deposits over time. This metric answers the business question: "How much total value is currently locked in ApeSwap's liquidity pools?"

## 2. Data sources

- **Blockchain events**: Parsed ApeSwap `Sync` events from liquidity pool contracts on Ethereum, BSC, Arbitrum, and Polygon networks that track reserve balance changes
- **Factory events**: Parsed `PairCreated` events from ApeFactory contracts that identify all valid trading pairs and their token compositions
- **Token metadata**: Token reference data including decimal places and symbol information for proper amount calculation and display
- **External data**: End-of-day token price feeds for USD conversion of token amounts
- **Configuration data**: Hardcoded denylist of trading pairs excluded due to limited price feed support for low liquidity tokens

## 3. Step-by-step calculation

### Component A: Reserve update extraction
- **Purpose**: Capture all changes to liquidity pool reserves from blockchain events
- **Logic**: Extract `Sync` events from ApeSwap liquidity pool contracts across Ethereum, BSC, Arbitrum, and Polygon networks. These events are emitted whenever pool reserves change due to deposits, withdrawals, or swaps. Filter out denylisted trading pairs that have unreliable price feeds due to low liquidity. Each event contains the current `reserve0` and `reserve1` amounts for the two tokens in the pool.
- **Key fields**: `reserve0_amount` and `reserve1_amount` (raw token balances), `account_address` (pool contract address), `block_timestamp` (event timing), `chain` (network identifier)

### Component B: Trading pair metadata enrichment  
- **Purpose**: Add essential token information needed for decimal correction and identification
- **Logic**: Join reserve updates with trading pair dimension data sourced from `PairCreated` events. This provides the token addresses for each position in the pool (`token0_address`, `token1_address`) and their respective decimal places. Token symbols are combined to create readable pool names like "WETH-USDC". The decimal information is crucial for converting raw token amounts from wei/smallest units to human-readable values.
- **Key fields**: `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name` (constructed from token symbols)

### Component C: Daily reserve aggregation
- **Purpose**: Convert event-level data to daily snapshots and calculate reserve changes
- **Logic**: Group reserve update events by day and pool, taking the last recorded reserve values for each token within each day using window functions. Calculate the day-over-day change in reserves by subtracting the previous day's ending balance from the current day's ending balance. For new pools appearing for the first time, use the full reserve balance as the net change. This captures the net flow of liquidity into or out of each pool on a daily basis.
- **Key fields**: `token0_amount` and `token1_amount` (daily net changes in reserves), `timestamp` (daily aggregation boundary)

### Component D: USD conversion and aggregation
- **Purpose**: Convert token amounts to USD values and sum across all pools
- **Logic**: Join daily token flow amounts with end-of-day price feeds for both tokens in each pool. Multiply each token's net flow amount by its USD price to get USD values. Sum the USD values of both tokens to calculate the total net deposits for each pool. Aggregate across all pools and chains to get the total daily net deposits for ApeSwap.
- **Key fields**: `price_usd` (end-of-day token prices), `net_deposits` (USD value of combined token flows)

### Final aggregation
- **Combining components**: Sum USD values from both tokens in each pool, then aggregate across all pools and supported chains (Ethereum, BSC, Arbitrum, Polygon)
- **Currency conversion**: Use end-of-day token price feeds to convert token amounts to USD at daily closing prices
- **Time aggregation**: Daily boundaries based on UTC timestamps, taking last reserve values within each day
- **Final calculation**: TVL equals the cumulative sum of daily net deposits over time, representing the total USD value currently locked in ApeSwap liquidity pools. Daily net deposits can be positive (net inflows) or negative (net outflows), with the running total representing current TVL.

*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.

ApeSwapABOND

Total value locked

Total value locked

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