Lenders deposit funds into Compound and receive interest payments from borrowers (supply-side fees).

Compound is a non-custodial lending protocol built on Ethereum. Compound was founded by Robert Leshner & Geoffrey Hayes and launched in 2017.

 COMP tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Compound’s investors include a16z, Paradigm, Polychain, etc.

governance

github

twitter

discord

etherscan

website

Lending

Compound

# Compound Total value locked Methodology

## 1. Overview

Compound TVL (Total Value Locked) measures the total USD value of assets deposited across all Compound lending markets. The metric represents net deposits, calculated as gross deposits minus active loans, providing a measure of the total capital available for lending on the protocol. The calculation combines token transfer tracking across multiple blockchains with real-time loan data to compute the net value locked in Compound markets on a daily basis.

## 2. Data sources

- **Multi-chain token transfers**: Parsed ERC20 `Transfer` events from Ethereum, Arbitrum, Base, Polygon, Optimism, and Unichain networks capturing deposits to and withdrawals from Compound market contracts
- **Native ETH flows**: Ethereum transaction traces tracking native ETH movements to and from the cETH market contract (`0x4ddc2d193948926d02f9b1fe9e1daa0718270ed5`)
- **Compound v2 events**: Parsed `AccrueInterest` events from Compound v2 contracts on Ethereum including `CEther_AccrueInterest_event`, `CErc20_AccrueInterest_event`, and `CErc20Delegator_AccrueInterest_event`
- **Compound v3 state data**: Daily snapshots of Compound v3 market states including total borrows and denomination information
- **Market configuration data**: Compound protocol configuration data identifying valid market addresses and their underlying asset mappings for both v2 and v3 deployments
- **Token metadata**: Token symbol and decimal information for proper asset identification and amount normalization
- **End-of-day price feeds**: Daily USD price data for all supported tokens to enable currency conversion

## 3. Step-by-step calculation

### Component A: Market transaction tracking
- **Purpose**: Captures all deposits to and withdrawals from Compound lending markets across supported chains
- **Logic**: Extract all ERC20 token transfers where the recipient address matches a known Compound market address, treating these as positive deposit amounts. Similarly extract all transfers where the sender address matches a market address, treating these as negative withdrawal amounts. Join transfer data with market configuration to ensure only legitimate Compound market addresses are included and to map market addresses to their underlying token assets.
- **Key fields**: `block_timestamp` for timing, `token_address` for asset identification, `account_address` for market identification, `amount` with positive values for deposits and negative values for withdrawals

### Component B: Native ETH handling  
- **Purpose**: Tracks native ETH deposits and withdrawals for the Compound v2 cETH market
- **Logic**: Extract native ETH flows to and from the specific cETH market address using transaction trace data. This captures ETH deposits that don't appear in standard ERC20 transfer events since ETH is the native blockchain currency.
- **Key fields**: `block_timestamp`, `account_address` set to the cETH market address, `amount` representing ETH value transferred, `token_address` representing ETH

### Component C: Daily TVL aggregation
- **Purpose**: Combines all market transactions and calculates cumulative TVL for each market
- **Logic**: Merge ERC20 market transactions with native ETH transactions. Aggregate all transactions by day, token address, and market address. Calculate running cumulative sums partitioned by token, market address, and chain to track the total amount deposited over time. This transforms transaction-level data into point-in-time TVL snapshots for each market.
- **Key fields**: Daily `timestamp`, `token_address`, `account_address` for market identification, cumulative `amount` representing total deposits

### Component D: Active loan tracking
- **Purpose**: Calculates the total amount of assets actively borrowed from Compound markets
- **Logic**: For Compound v2, extract `totalBorrows` values from `AccrueInterest` events which are emitted when interest accrues and borrow balances are updated. For Compound v3, use state snapshot data that provides `total_borrows` amounts. Aggregate loan amounts daily by market and token. The active loans represent capital that has been lent out and is not available as liquid TVL.
- **Key fields**: Daily `timestamp`, `account_address` for market identification, `token_address`, `active_loans` amount

### Component E: USD conversion and normalization
- **Purpose**: Converts token amounts to USD values with proper decimal handling
- **Logic**: Filter out negative TVL amounts which can occur from cToken transactions. Fill forward missing days to ensure continuous time series data. Join with end-of-day price feeds to convert token amounts to USD values. Apply decimal correction based on each token's decimal places to normalize amounts to standard units.
- **Key fields**: `timestamp`, `token_address`, USD-denominated `tvl` amount, USD-denominated `active_loans` amount

### Final aggregation
- **Combining components**: Combine USD-converted TVL amounts with USD-converted active loan amounts for the same timestamp and chain. Sum TVL amounts and active loan amounts separately to get totals across all markets and tokens.
- **Currency conversion**: All amounts converted to USD using end-of-day price feeds with proper decimal normalization for each token type
- **Time aggregation**: Data aggregated to daily boundaries using timestamp truncation to day level
- **Final calculation**: Net deposits calculated as total TVL amounts plus active loan amounts (since loans represent capital deployed from the protocol). The final TVL metric represents the net value locked in Compound markets after accounting for borrowed amounts.

*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.

CompoundCOMP

Total value locked

Total value locked

Competitive landscape

Chain breakdown