# Drift Protocol Trade Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Drift Protocol Trade measures the total market value of all assets held within the protocol's primary vault accounts. This metric represents the collateral deposited by users to facilitate decentralized trading, borrowing, and lending activities. TVL serves as a primary indicator of the protocol's liquidity and the scale of assets secured by its Solana-based programs.

## 2. Data sources

- **Blockchain events**: Solana account balance changes for Drift Protocol vault accounts, covering Solana
- **External data**: End-of-day price feeds for assets held within the vault

## 3. Step-by-step calculation

### Component A: Vault balance tracking

- **Purpose**: Identify and aggregate the quantity of each asset held by the Drift Protocol Trade vault.
- **Logic**: Solana account balance changes are filtered to isolate the specific owner account associated with the Drift Protocol vault. For every asset held, the daily closing balance is extracted from the ledger state. In instances where no balance-changing transactions occur on a specific day, the last known balance is carried forward to ensure a continuous daily time series.
- **Key fields**: `post_balance` (asset quantity), `token_address` (asset identification), and `owner` (vault identification).

### Component B: Asset valuation and USD conversion

- **Purpose**: Transform raw asset quantities into a standardized USD value.
- **Logic**: Daily asset balances are matched with end-of-day price feeds based on the asset's address on Solana. The quantity of each asset is normalized by its specific decimal precision before being multiplied by the corresponding USD price.
- **Key fields**: `token_amount` (normalized quantity) and `price_usd` (valuation).

### Component C: Final aggregation

- **Purpose**: Consolidate individual asset values into a single daily TVL metric for the product.
- **Logic**: The USD values of all identified assets in the vault are summed for each UTC-mapped day. A final forward-filling logic is applied to the aggregated totals to maintain data continuity across the time series.
- **Key fields**: `tvl` (summed USD value) and `timestamp` (daily granularity).

*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

Derivative exchanges