# dYdX V4 Bridge deposits Methodology

## 1. Overview

Bridge deposits measures the total value of assets held in dYdX V4 bridge contracts on the Ethereum mainnet. This metric serves as a leading indicator of capital flows into the dYdX Chain and reflects the intent of users to provide liquidity or trade on the protocol. Asset balances are tracked within specific canonical bridge addresses and are converted to USD to provide a standardized view of total value locked within the bridging infrastructure.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers and native asset transfers involving the dYdX V4 bridge contract (`0xd54f502e184b6b739d7d27a6410a67dc462d69c8`), covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Asset flow extraction

- **Purpose**: Identify all incoming and outgoing asset movements for the dYdX V4 bridge.
- **Logic**: Native asset transfers and ERC-20 token transfers are parsed for the designated bridge contract address. Inflows and outflows are identified by monitoring transfers where the bridge address acts as the sender or recipient. Data is aggregated at a daily granularity to determine the net change in asset quantities for each supported asset.
- **Key fields**: `amount`, `token_address`, `account_address`, and `block_timestamp`.

### Component B: Cumulative balance tracking

- **Purpose**: Calculate the running balance of assets held within the bridge infrastructure.
- **Logic**: Daily net flows for each asset are aggregated using a cumulative sum to determine the total quantity held at the end of each UTC day. A fill-forward strategy is applied to ensure that balances are maintained for days where no transfer activity occurs, providing a continuous time series of held assets.
- **Key fields**: `amount` and `timestamp`.

### Component C: USD normalization and aggregation

- **Purpose**: Convert asset quantities into a uniform USD valuation.
- **Logic**: Raw asset quantities are normalized by their respective decimal precision. These normalized balances are multiplied by end-of-day price feeds for each asset. The resulting values are aggregated to calculate the total bridge deposits for dYdX V4.
- **Key fields**: `price_usd` and `decimals`.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of assets held in a project's bridge contracts.

Bridge deposits

Exchanges (DEX)

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.

dYdX V4

Bridge deposits

Bridge deposits

Chain breakdown