# Liquid Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Liquid is measured as the total value of assets deposited into the Liquid vaults on Ethereum and the HYPE/BeHYPE staking contracts on HyperEVM. It is utilized as a key indicator of user adoption and capital efficiency for the automated yield-generating strategies offered by Liquid. The metric is calculated by aggregating the USD value of all underlying assets, including staked ETH, wrapped BTC, stablecoins, and ecosystem assets, net of double-counted looped positions. These assets are valued using end-of-day price feeds and normalized by decimal precision.

## 2. Data sources

- **Blockchain events**: Contract state reads of vault supply, accountant states, and token configurations, alongside oracle TVL report events and total supply events, covering Ethereum and HyperEVM
- **External data**: End-of-day price feeds for underlying assets and asset metadata

## 3. Step-by-step calculation

### Component A: Liquid Vaults capital tracking

- **Purpose**: Track the raw capital deployed in Liquid Vaults on Ethereum.
- **Logic**: Vault configurations are defined for three asset groups: `eth`, `btc`, and `usd`. For each active vault, the total supply of vault shares and the exchange rate are retrieved from accountant and vault state reads. The raw capital deployed is calculated by dividing the total supply of shares by the accountant's decimal precision, multiplying by the exchange rate (normalized by the accountant's decimal precision), and scaling by the base asset's decimal precision.
- **Key fields**: `total_supply`, `exchange_rate`, `accountant_decimals`, `base_decimals`

### Component B: Double-counting and loop adjustments

- **Purpose**: Adjust vault balances to prevent double-counting of looped assets.
- **Logic**: Adjustments are calculated for the `eth` and `btc` vault groups. For the `eth` group, a WETH adjustment is subtracted, which is determined by the looped TVL of the `Liquid-weth` category (before May 6, 2025) or the `Liquid-vault-weth` category (on or after May 6, 2025) reported by the oracle. For the `btc` group, a WBTC adjustment is subtracted, which is determined by the total supply of `ether.fi eBTC` (before May 6, 2025) or the looped TVL of the `Liquid-vault-wbtc` category (on or after May 6, 2025). Adjusted group totals are prevented from falling below zero.
- **Key fields**: `weth_adjustment`, `wbtc_adjustment`, `total_supply`

### Component C: Asset distribution and reallocation

- **Purpose**: Reallocate adjusted vault balances to their respective underlying assets.
- **Logic**: The adjusted group totals and subtracted adjustments are distributed to specific asset addresses. The adjusted `eth` group total is mapped to `ether.fi weETH`. The adjusted `btc` group total is split equally between `ether.fi eBTC` and WBTC. The adjusted `usd` group total is mapped to USDC. The subtracted WETH and WBTC adjustments are added back directly as WETH and WBTC respectively, ensuring accurate asset classification.
- **Key fields**: `adjusted_amount`, `token_address`

### Component D: HyperEVM HYPE and BeHYPE supply tracking

- **Purpose**: Capture the supply of HYPE and BeHYPE contributed by Liquid on HyperEVM.
- **Logic**: The total supply of LiquidHYPE is tracked directly. The total supply of BeHYPE is multiplied by the BeHYPE-to-HYPE exchange rate (normalized by decimal precision) to calculate the equivalent HYPE amount. These two components are summed to represent the total HYPE supply, which is mapped to the wrapped HYPE (WHYPE) asset.
- **Key fields**: `total_supply`, `behype_to_hype_rate`

### Component E: USD conversion and final aggregation

- **Purpose**: Normalize all asset balances to USD and aggregate daily TVL.
- **Logic**: All distributed asset amounts from the Liquid Vaults and HyperEVM supply are normalized by their respective decimal precisions. These normalized amounts are multiplied by end-of-day USD asset prices. The resulting USD values are aggregated daily to produce the final TVL metric for the Liquid product.
- **Key fields**: `amount`, `price_usd`

*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

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

Total value locked

Total value locked

Chain breakdown