Liquidity providers deposit funds into Balancer and receive trading fees from traders (supply-side fees). In addition, Balancer provides liquidity providers with additional yield using boosted pools.

Balancer is a non-custodial exchange protocol built on Ethereum. Balancer was founded by Fernando Martinelli and launched in 2018.

BAL tokenholders own and govern the protocol. They currently take a cut of the total trading and yield fees (revenue). Balancer's investors include DeFiance Capital, Three Arrows Capital, Alameda Research, etc.

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Balancer

# Balancer Total value locked Methodology

## 1. Overview

Balancer TVL represents the total dollar value of all underlying assets deposited in Balancer V2 liquidity pools across supported chains. The calculation aggregates the USD value of all tokens held in pools while excluding LP tokens (Balancer Pool Tokens - BPTs) to avoid double-counting. This metric answers how much total capital is locked in the Balancer protocol for providing liquidity.

## 2. Data sources

The TVL calculation draws from several blockchain and external data sources:
- **Pool creation events**: Parsed `PoolCreated` events from various Balancer V2 factory contracts across Ethereum, Arbitrum, Polygon, Gnosis, Avalanche, and Base chains to identify all valid pool addresses
- **Pool reserve data**: Hourly snapshots of token balances held in each Balancer pool contract
- **Token metadata**: Token symbols, decimal places, and contract addresses for proper identification and decimal conversion  
- **End-of-day price feeds**: Token price data for USD conversion of reserves
- **Factory contract events**: Events from multiple pool factory types including WeightedPool, ComposableStablePool, StablePool, MetaStablePool, AaveLinearPool, ERC4626LinearPool, ManagedPool, YearnLinearPool, and LiquidityBootstrappingPool factories

## 3. Step-by-step calculation

### Component A: Pool identification
- **Purpose**: Identify all valid Balancer pool addresses to distinguish LP tokens from underlying assets
- **Logic**: Collect `PoolCreated` events from multiple factory contracts across supported chains. Each event contains a `pool` field representing the address of the newly created pool contract, which corresponds to the LP token address. Factory contracts include various versions and types such as WeightedPoolFactory, ComposableStablePoolFactory, StablePoolFactory, and their versioned variants across chains. The model excludes Optimism chain data since those pools are managed jointly with BeethovenX and counted under that protocol instead
- **Key fields**: `pool` addresses from creation events, `chain` information, factory contract `version`

### Component B: Daily reserve extraction  
- **Purpose**: Convert hourly pool reserve snapshots into daily end-of-day reserve values
- **Logic**: Source hourly pool reserve data and filter for records where the hour equals zero (midnight). Shift timestamps backward by one day to represent end-of-day reserves for the previous day. Filter out negative reserves and exclude Optimism chain data. Join with token metadata to obtain symbols and decimal information for each token
- **Key fields**: `timestamp` shifted by one day, `pool_address`, `token_address`, `reserve` amounts, token `symbol`

### Component C: LP token exclusion
- **Purpose**: Filter out LP tokens (pool tokens) from reserve calculations to avoid double-counting
- **Logic**: Use the pool address registry from Component A to identify which token addresses are actually LP tokens. Perform a left join between pool reserves and the pool registry where the `token_address` matches a `account_address` (pool address). Exclude records where this join finds a match, meaning the token is actually a Balancer pool token. Also exclude cases where `account_address` equals `token_address` to remove self-referential entries
- **Key fields**: `account_address` (pool address), `token_address`, join exclusion logic

### Final aggregation
- **Combining components**: Sum all filtered reserve amounts across all pools, tokens, and chains after LP token exclusion
- **Currency conversion**: Apply USD conversion using end-of-day price feeds and correct for token decimal places through the finalization process
- **Time aggregation**: Group by daily timestamps to produce daily TVL values
- **Final calculation**: The TVL equals the sum of all USD-converted underlying asset reserves held in Balancer pools, excluding the value of LP tokens themselves to prevent double-counting liquidity

*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.

BalancerBAL

Total value locked

Total value locked

Competitive landscape

Chain breakdown