Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

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dYdX

# dYdX Total value locked Methodology

## 1. Overview

dYdX Total Value Locked (TVL) represents the total value of assets deposited into the dYdX protocol across both its dYdX V3 (Ethereum-based) and dYdX V4 (native dYdX chain) versions. The metric is calculated as the cumulative net deposits (deposits minus withdrawals) across both protocol versions, treating net deposits as equivalent to TVL. This approach captures the total value that users have committed to the protocol at any given point in time.

## 2. Data sources

The TVL calculation combines data from multiple sources:

- **dYdX dYdX V4 message events**: Native dYdX blockchain message events, specifically `deposit_to_subaccount` and `withdraw_from_subaccount` events containing USDC deposit and withdrawal data
- **Ethereum token balance data**: Token balance changes for specific dYdX dYdX V3 smart contract addresses on Ethereum, tracking various ERC-20 tokens held by the protocol
- **End-of-day price feeds**: Daily USD price data for tokens held in dYdX dYdX V3 contracts, used for USD conversion
- **Token metadata**: Information about token symbols, decimal places, and contract addresses for proper data processing

## 3. Step-by-step calculation

### Component A: dYdX dYdX V4 net deposits

- **Purpose**: Calculates net USDC deposits on the native dYdX dYdX V4 chain
- **Logic**: Processes message events from the dYdX blockchain to track deposit and withdrawal activity. Filters for `deposit_to_subaccount` and `withdraw_from_subaccount` events where the `asset_id` equals '0', indicating USDC transactions. Extracts the `quantums` field from event attributes JSON, which represents the amount in USDC base units. Deposits are recorded as positive values while withdrawals are converted to negative values. Daily aggregation sums all movements per day, then calculates a running cumulative sum to track net deposits over time.
- **Key fields**: `quantums` (USDC amount in base units), `asset_id` (token identifier), `event_type` (deposit or withdrawal), `block_timestamp` (transaction timing)

### Component B: dYdX dYdX V3 net deposits  

- **Purpose**: Calculates the USD value of tokens held in dYdX dYdX V3 smart contract addresses on Ethereum
- **Logic**: Tracks token balance changes for three specific dYdX dYdX V3 contract addresses on Ethereum. Uses blockchain data to calculate how token balances change over time through transfers, mints, burns, and other balance-affecting events. Maintains running cumulative balances for each token at each address. Converts token balances to USD using end-of-day price feeds, joining on timestamp, chain, and token address. Only includes addresses and tokens with positive balances in the final calculation.
- **Key fields**: `account_address` (dYdX dYdX V3 contract addresses), `token_address` (ERC-20 token contracts), `balance` (token amount), `price_usd` (daily USD price)

### Final aggregation

- **Combining components**: The dYdX V3 and dYdX V4 net deposits are combined using a union operation, maintaining separate `product_id` values ('dYdX V3' and 'dYdX V4') to distinguish between protocol versions. Each component contributes its respective net deposit values calculated in USD.
- **Currency conversion**: dYdX V4 amounts are already in USDC and treated as USD equivalent. dYdX V3 token balances are converted to USD by multiplying token quantities by their respective end-of-day USD prices from price feeds.
- **Time aggregation**: Data is aggregated to daily granularity using day-truncated timestamps. Missing daily values are forward-filled to ensure continuous time series data without gaps.
- **Final calculation**: TVL equals the sum of dYdX V3 net deposits (USD-converted token balances in dYdX contracts) plus dYdX V4 net deposits (cumulative USDC deposits minus withdrawals). The result represents the total value of assets committed to the dYdX protocol across both versions.

*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.

dYdXDYDX

Total value locked

Total value locked

Competitive landscape

Chain breakdown