# Chainflip Lending Total value locked Methodology

## 1. Overview

Total value locked (TVL) is calculated to represent the total value of assets deposited as supply or collateral within Chainflip Lending. This metric is utilized as a key indicator of the protocol's liquidity, capacity for lending operations, and overall user adoption. To prevent double-counting of assets that may simultaneously act as both supply and collateral for a single depositor, the maximum of the two balances is utilized per account. The final values are normalized to USD using end-of-day price feeds to enable standardized analysis.

## 2. Data sources

- **Blockchain events**: `LendingFundsAdded`, `LendingFundsRemoved`, `CollateralAdded`, and `CollateralRemoved` events from the `lendingPools` pallet, covering Chainflip Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Flow extraction and normalization

- **Purpose**: Asset flows are extracted and signed from lending and collateral events.
- **Logic**: `LendingFundsAdded`, `LendingFundsRemoved`, `CollateralAdded`, and `CollateralRemoved` events are parsed from the `lendingPools` pallet on Chainflip Chain. For supply flows, `LendingFundsAdded` is assigned a positive sign and `LendingFundsRemoved` is assigned a negative sign. For collateral flows, `CollateralAdded` is assigned a positive sign and `CollateralRemoved` is assigned a negative sign. Raw hex values are converted to numeric format, and flows are aggregated by account, asset, and day.
- **Key fields**: `block_timestamp` (timing), `amount` (flow quantities), `token_address` (asset identification)

### Component B: Balance tracking and double-counting prevention

- **Purpose**: Running balances are calculated and deduplication logic is applied per depositor.
- **Logic**: Daily supply and collateral flow deltas are accumulated over time to establish running balances for each account and asset. To prevent double-counting of assets that are simultaneously utilized as supply and collateral by the same depositor, the greater value between the running supply balance and the running collateral balance is selected as the active locked balance for each account. These sparse daily balances are then filled forward to ensure continuous daily coverage.
- **Key fields**: `supply_balance` (cumulative supply), `collateral_balance` (cumulative collateral), `locked_balance` (deduplicated balance)

### Component C: Aggregation and USD conversion

- **Purpose**: Locked balances are aggregated and converted to USD.
- **Logic**: The deduplicated locked balances are summed across all accounts to calculate the total locked balance per asset and day. These aggregated balances are normalized by asset decimal precision using asset metadata. The normalized balances are then multiplied by end-of-day asset prices to determine the final total value locked in USD. Missing days are filled with zeros where applicable, and chain availability filters are applied.
- **Key fields**: `tvl` (total value locked), `price` (asset price)

*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

Lending

Chainflip operates a decentralized network of 150 validators that collectively control multi-chain vaults using threshold signature schemes (TSS). The protocol uses a Just-In-Time (JIT) AMM where liquidity providers compete to fill swap orders at the moment of execution, enabling capital-efficient cross-chain swaps. A portion of each swap fee is used to buy and burn FLIP tokens.

Chainflip is a decentralized cross-chain swap protocol that enables native asset exchanges across blockchains including Bitcoin, Ethereum, and Solana without wrapped tokens or traditional bridges. It was launched in 2023 by Chainflip Labs and uses a JIT AMM model combined with MPC-based vault technology to provide competitive pricing on cross-chain trades.

Chainflip is governed by its validator set and FLIP tokenholders. Validators stake FLIP to participate in the network and earn fees from swaps. The protocol is developed and maintained by Chainflip Labs.

Chainflip Lending

Total value locked

Total value locked

Chain breakdown