# Liquid Capital deployed Methodology

## 1. Overview

Capital deployed is defined as the total value of user deposits allocated into yield-generating strategies by Liquid. The total value locked within the various automated vaults managed by the protocol is reflected by this metric, indicating its scale and capacity to generate fee revenue. Through the tracking of assets held across different vault groups, a clear view of the protocol's active asset management footprint is provided to institutional investors.

## 2. Data sources

- **Blockchain events**: `totalSupply` state reads from Liquid vault and eBTC contracts, `accountantState`, `decimals`, and `base` asset state reads from accountant contracts, `behype_to_hype_rate` and `total_supply` state reads from HyperEVM rate and supply contracts, and `categoryTVL` oracle reports, covering Ethereum and HyperEVM
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Liquid vault state and supply tracking

- **Purpose**: Extract total supply, exchange rates, and asset configurations for Ethereum-based Liquid vaults.
- **Logic**: State reads are parsed from accountant and vault contracts to retrieve the total shares, exchange rates, and total supply for each active vault. Vaults are filtered to include only those where the block timestamp is greater than the hardcoded deployment timestamp. For each active vault, the raw capital deployed is calculated by normalizing the total supply by the accountant's decimal precision, multiplying it by the exchange rate normalized by the accountant's decimal precision, and scaling the resulting value by the base asset's decimal precision.
- **Key fields**: `total_supply`, `exchange_rate`, `decimals`, `base_decimals`

### Component B: Vault group aggregation and adjustments

- **Purpose**: Aggregate vault balances by asset group and apply TVL adjustments to prevent double-counting.
- **Logic**: Vault balances are aggregated into three distinct groups: 'eth', 'btc', and 'usd'. Adjustments are applied to the 'eth' and 'btc' groups based on a specific cutoff timestamp. For the 'eth' group, a WETH adjustment is subtracted, where the TVL of the `Liquid-weth` category is utilized before the cutoff and the `Liquid-vault-weth` category is utilized after the cutoff. For the 'btc' group, a WBTC adjustment is subtracted, where the total supply of eBTC is utilized before the cutoff and the TVL of the `Liquid-vault-wbtc` category is utilized after the cutoff. Adjusted group amounts are floored at zero to prevent negative balances.
- **Key fields**: `vault_group`, `weth_adjustment`, `wbtc_adjustment`

### Component C: Asset allocation and adjustment recovery

- **Purpose**: Distribute the adjusted group balances to their respective underlying assets and add back the subtracted adjustments.
- **Logic**: The adjusted 'eth' group balance is allocated entirely to `ether.fi weETH`. The adjusted 'btc' group balance is split equally (50% each) between eBTC and WBTC. The adjusted 'usd' group balance is allocated entirely to USDC. To ensure complete asset coverage, the subtracted WETH and WBTC adjustments are added back as separate entries for WETH and WBTC respectively.
- **Key fields**: `token_address`, `amount`

### Component D: HyperEVM HYPE asset supply integration

- **Purpose**: Capture capital deployed from LiquidHYPE and BeHYPE on HyperEVM.
- **Logic**: Total supply is tracked directly for LiquidHYPE. For BeHYPE, the total supply is multiplied by the BeHYPE-to-HYPE exchange rate, which is normalized by decimal precision, to calculate the equivalent HYPE amount. These two components are summed to determine the total HYPE capital deployed on HyperEVM.
- **Key fields**: `total_supply`, `behype_to_hype_rate`

### Component E: USD conversion and aggregation

- **Purpose**: Normalize all capital deployed values to USD.
- **Logic**: All asset amounts are normalized by their respective decimal precisions using asset metadata. The normalized amounts are then multiplied by end-of-day asset prices to calculate the USD value of capital deployed. The final values are aggregated daily using UTC day boundaries.
- **Key fields**: `capital_deployed`, `price_usd`

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

Value of capital allocated into investments by an asset manager.

Capital deployed

Liquid staking

Stakers deposit funds into Ether.fi and receive a return on investment in the form of staking rewards (supply-side fees).

Ether.fi is a non-custodial staking protocol built on Ethereum and other blockchains. Ether.fi was founded by Mike Silagadze and launched in 2023.

Ether.fi team & investors own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Ether.fi’s investors include North Island Ventures, Chapter One, Node Capital, and Arthur Hayes.

Liquid

Capital deployed

Capital deployed

Chain breakdown