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Lending

Dolomite

# Dolomite Total value locked Methodology

## 1. Overview

Dolomite TVL measures the total value locked in the Dolomite lending protocol across multiple chains (Arbitrum, Base, Ink, Berachain, and Ethereum). The metric represents the net value of assets deposited into the protocol, accounting for both positive balances (deposits/supplies) and negative balances (borrows/loans). TVL is calculated as the sum of net deposits, which combines portfolio balances held by protocol contracts with active loan amounts owed by borrowers.

## 2. Data sources

- **Dolomite protocol events**: Parsed events from the DolomiteMargin contract including `LogTrade`, `LogDeposit`, `LogWithdraw`, `LogTransfer`, `LogBuy`, `LogSell`, `LogLiquidate`, and `LogVaporize` events that track account balance changes
- **Index update events**: `LogIndexUpdate` events from the DolomiteMargin contract that provide borrow and supply index values used for interest accrual calculations
- **Market registration events**: `LogAddMarket` events that register new token markets within the protocol
- **Token flow data**: Account-level token transfer tracking for both ERC20 tokens and native tokens flowing to/from protocol contract addresses
- **End-of-day price feeds**: Daily token price data for USD conversion
- **Dolomite market prices**: Protocol-internal price data used as fallback when standard price feeds are unavailable
- **Token metadata**: Token symbols, decimal places, and contract addresses for proper amount calculations

## 3. Step-by-step calculation

### Component A: Portfolio balances (net deposits from external flows)
- **Purpose**: Tracks the net token balances held by Dolomite protocol contracts, representing user deposits minus withdrawals
- **Logic**: Monitors token flows (both ERC20 transfers and native token movements) to/from specific Dolomite protocol contract addresses on each chain. Daily flows are aggregated by token and converted from raw amounts to decimal-adjusted amounts using token metadata. Cumulative balances are calculated over time by summing daily flows. Missing days are forward-filled to maintain continuous time series. Only positive balances are included in the final calculation
- **Key fields**: `timestamp`, `chain`, `account_address` (protocol contract), `token_address`, `amount` (decimal-corrected), cumulative `balance`

### Component B: Active loans (borrowing positions)  
- **Purpose**: Calculates the current value of all active borrowing positions in the protocol
- **Logic**: Parses Dolomite account balance update events to identify loan positions where `par_sign` is false (indicating negative/borrowed amounts) and `par_amount` is greater than zero. Creates daily snapshots of all active loans by finding which loan positions existed at the end of each day. Converts non-interest-adjusted par amounts to real borrow amounts by applying daily borrow index values from `LogIndexUpdate` events using the formula: real_amount = par_amount × (borrow_index / 1e18). Aggregates by market and converts to USD values
- **Key fields**: `account_owner`, `account_number`, `market_id`, `par_amount` (non-adjusted), `borrow_index`, calculated `borrow_amount` (interest-adjusted)

### Component C: Market data enrichment
- **Purpose**: Provides token metadata and pricing information for proper calculations
- **Logic**: Market registration events (`LogAddMarket`) map market IDs to token addresses and provide market metadata. Token metadata provides decimal places for amount corrections. Daily index updates from `LogIndexUpdate` events provide borrow and supply indices needed for interest calculations
- **Key fields**: `market_id`, `token_address`, `token_decimals`, `borrow_index`, `supply_index`

### Final aggregation
- **Combining components**: Portfolio balances and active loans are combined through a union operation, where portfolio balances represent positive net deposits and active loans represent additional value locked through borrowing positions
- **Currency conversion**: USD conversion uses end-of-day price feeds as the primary source, with Dolomite's internal market prices serving as fallback when standard prices are unavailable
- **Time aggregation**: All calculations use daily boundaries with end-of-day snapshots. Missing days are forward-filled to ensure continuous time series
- **Final calculation**: TVL equals the sum of all net deposits (portfolio balances plus active loans) across all chains and tokens, expressed in USD terms. The metric represents the total economic value locked within the Dolomite protocol ecosystem

*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.

DolomiteDOLO

Total value locked

Total value locked

Competitive landscape

Chain breakdown