# Bifrost Stable Swaps Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets deposited in Bifrost Stable Swaps liquidity pools. This metric reflects the liquidity available for stable asset exchanges and serves as a primary indicator of the product's adoption and capacity to facilitate low-slippage trades. TVL is calculated by aggregating the balances of all assets held within the stable swap pool contracts and converting them to USD.

## 2. Data sources

- **Blockchain events**: `Minted` events from `vtokenMinting` contracts and state snapshots from `stable_asset_pools` contracts, covering Bifrost Substrate
- **External data**: End-of-day price feeds for supported assets and asset metadata

## 3. Step-by-step calculation

### Component A: Pool balance extraction

- **Purpose**: Retrieve the raw quantities of assets held in each stable swap pool
- **Logic**: Asset balances and currency identifiers are parsed from `stable_asset_pools` state records. Balances for primary and secondary assets (represented as `balance_1` and `balance_2`) are extracted for every active pool ID. Data is organized by block number to maintain a historical record of pool compositions.

### Component B: VToken exchange rate calculation

- **Purpose**: Determine the correct valuation of liquid staked assets relative to their underlying base assets
- **Logic**: The exchange ratio between base assets and vTokens is calculated by parsing `Minted` events from `vtokenMinting` contracts. The ratio is derived by dividing the base token amount by the vToken amount emitted in the event. These ratios are averaged daily and a fill-forward mechanism is applied to ensure consistent pricing for liquid staked assets across all time periods.

### Component C: Asset normalization and valuation

- **Purpose**: Convert raw on-chain balances into normalized units and apply liquid staking adjustments
- **Logic**: Raw balances are normalized by decimal precision based on asset metadata. For assets identified as vTokens, the normalized balance is multiplied by the calculated vToken price ratio to account for accrued staking rewards. Assets are mapped to canonical identifiers to ensure accurate price discovery and metadata application.

### Component D: USD conversion and aggregation

- **Purpose**: Calculate the final TVL in a standardized currency
- **Logic**: Normalized asset balances are multiplied by end-of-day price feeds to determine the USD value of each position. The values are summed by day across all pools on Bifrost Substrate. Daily granularity is maintained using UTC day boundaries, and a zero-filling strategy is applied to the final time series to ensure continuity in reporting.

*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.

Bifrost is the Staking Yield Layer app-chain for stablecoins, RWAs, and DeFi, powered by the Polkadot Relay chain.

BNC holders own and govern the protocol. Bifrost’s investors include OKX Ventures, Long Hash Ventures, etc.

Bifrost Stable Swaps

Archived

Total value locked

Total value locked

Chain breakdown