Stakers deposit funds into BENQI and receive a return on investment in the form of staking rewards (supply-side fees).

BENQI Liquid Staking is the liquid staking derivative business line of BENQI. BENQI was founded by an international team of software developers and launched in 2021.

BENQI tokenholders own and govern the BENQI protocol, including the BENQI Liquid Staking business line. They currently take a cut of the total staking rewards earned by the protocol (revenue). BENQI's investors include Dragonfly Capital, Mechanism Capital, Spartan, etc.

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BENQI Liquid Staking

# BENQI Liquid Staking Total value locked Methodology

## 1. Overview

BenqiLSD TVL measures the total value locked in the Benqi liquid staking protocol on Avalanche. The metric represents the USD value of all AVAX tokens staked through the protocol, calculated by tracking the total supply of sAVAX (staked AVAX) tokens. The calculation monitors mint and burn events of sAVAX tokens to maintain a running total of assets staked, then converts this to USD value for the final TVL metric.

## 2. Data sources

The TVL calculation relies on the following raw data sources:
- **Protocol events**: Parsed `StakedAvax_Submitted` and `StakedAvax_Redeem` event logs from the Benqi liquid staking protocol on Avalanche
- **Token data**: sAVAX token contract events at address `0x2b2c81e08f1af8835a78bb2a90ae924ace0ea4be`
- **Price feeds**: End-of-day token price feeds for sAVAX to USD conversion
- **Token metadata**: Token decimal precision data for accurate amount calculations

## 3. Step-by-step calculation

### Component A: sAVAX mint tracking
- **Purpose**: Captures new sAVAX tokens minted when users stake AVAX
- **Logic**: Extracts `StakedAvax_Submitted` event logs from the Benqi protocol on Avalanche. Each event represents a user staking AVAX and receiving sAVAX tokens in return. The `shareAmount` field contains the amount of sAVAX tokens minted. Events are classified under the liquid staking business line and assigned to the sAVAX account with the corresponding token address.
- **Key fields**: `shareAmount` (amount of sAVAX minted), `block_timestamp` (event timing), `transaction_hash` and `log_index` (unique identification)

### Component B: sAVAX burn tracking  
- **Purpose**: Captures sAVAX tokens burned when users unstake their AVAX
- **Logic**: Extracts `StakedAvax_Redeem` event logs from the Benqi protocol on Avalanche. Each event represents a user unstaking by burning sAVAX tokens to receive AVAX back. The `shareAmount` field contains the amount of sAVAX tokens burned. Events follow the same classification as mint events but represent supply reduction.
- **Key fields**: `shareAmount` (amount of sAVAX burned), `block_timestamp` (event timing), `transaction_hash` and `log_index` (unique identification)

### Component C: Daily supply change calculation
- **Purpose**: Combines mint and burn events to calculate net daily changes in sAVAX supply
- **Logic**: Unions mint events (with positive amounts) and burn events (with negative amounts) into a single dataset. Groups events by day using timestamp truncation and sums the amounts for each day. This produces daily net changes in sAVAX token supply, where positive values indicate net staking and negative values indicate net unstaking.
- **Key fields**: `timestamp` (daily boundaries), `amount` (net daily supply change)

### Component D: Cumulative supply tracking
- **Purpose**: Calculates the running total of sAVAX tokens in circulation
- **Logic**: Applies a cumulative sum window function to the daily supply changes, partitioned by chain, version, and token address. This produces the total sAVAX supply for each day, representing the cumulative amount of AVAX staked in the protocol over time.
- **Key fields**: `assets_staked` (cumulative sAVAX supply)

### Final aggregation
- **Combining components**: The TVL metric directly uses the cumulative sAVAX supply from the assets staked calculation
- **Currency conversion**: Converts sAVAX amounts to USD using end-of-day price feeds and applies decimal corrections to ensure accurate token amount representation
- **Time aggregation**: Uses daily boundaries with timestamp truncation to day level granularity
- **Final calculation**: The final TVL equals the USD value of total sAVAX tokens in circulation, representing the total value of AVAX locked in the liquid staking protocol

*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.

BENQI Liquid Staking

Total value locked

Total value locked

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