# dYdX V4 Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets deposited into dYdX V4 subaccounts on the dYdX Chain. This metric serves as a leading indicator for the protocol's liquidity and trading capacity, as these assets serve as collateral for perpetual futures trading. TVL is calculated by tracking the net balance of assets remaining within the protocol after accounting for all historical deposits and withdrawals.

## 2. Data sources

- **Blockchain events**: `deposit_to_subaccount` and `withdraw_from_subaccount` events from `message_events` on the dYdX Chain
- **External data**: Asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Asset flow extraction

- **Purpose**: Capture all deposits and withdrawals to and from protocol subaccounts
- **Logic**: `deposit_to_subaccount` and `withdraw_from_subaccount` events are parsed from `message_events`. Filtering is applied to include only events where the `asset_id` is '0', representing the primary USDC collateral. The `quantums` field is extracted from the event attributes to determine the raw volume of each transaction.
- **Key fields**: `quantums`, `event_type`, `asset_id`

### Component B: Net deposit calculation

- **Purpose**: Determine the cumulative balance of assets held on-chain
- **Logic**: Daily deposit and withdrawal volumes are aggregated. Raw `quantums` values are normalized by decimal precision. A cumulative sum of these flows is calculated across the entire history of the dYdX Chain to determine the net balance of USDC held within the protocol. A forward-filling logic is applied to maintain a continuous balance for days where no on-chain movement events occur.
- **Key fields**: `quantums`, `block_timestamp`

### Component C: USD valuation and final aggregation

- **Purpose**: Finalize the TVL metric in USD for reporting
- **Logic**: The cumulative net deposit balance is assigned as the TVL for dYdX V4. As the assets are denominated in USDC, the normalized quantities directly represent the USD value. The data is aggregated at a daily granularity with UTC day boundaries. Any missing values in the final time series are zero-filled to ensure consistent reporting.

### Component D: Chain and product filtering

- **Purpose**: Ensure data accuracy and product-level attribution
- **Logic**: Results are filtered to include only records associated with the dYdX Chain and attributed specifically to the dYdX V4 product. Availability filters are applied to ensure data is only displayed up to the last approved timestamp or archival date for the relevant chain.

*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

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

Total value locked

Total value locked

Chain breakdown