# Fathom DEX Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Fathom DEX measures the total market value of assets deposited into liquidity pools. This metric represents the available liquidity for trading pairs on the exchange and serves as a primary indicator of the platform's adoption and capital efficiency. Assets are supplied by liquidity providers to facilitate decentralized trading and can be withdrawn by depositors at any time.

## 2. Data sources

- **Blockchain events**: `PairCreated` events from `Factory` contracts and `Sync` events from `Pair` contracts on XDC Network
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trading pair identification

- **Purpose**: Identify the universe of active liquidity pools and their constituent assets.
- **Logic**: `PairCreated` events are parsed from `Factory` contracts to identify the contract addresses of liquidity pools and the addresses of the two assets within each pair. This data is joined with asset metadata to retrieve the correct decimal precision for each asset, ensuring accurate quantity calculations.

### Component B: Reserve balance tracking

- **Purpose**: Capture the quantities of assets held within each liquidity pool.
- **Logic**: `Sync` events are parsed from `Pair` contracts to extract the updated reserve balances for both assets in a pool following any state-changing transaction. The last reserve values recorded for each pool within a UTC day are captured to represent the end-of-day balances.

### Component C: USD conversion and aggregation

- **Purpose**: Standardize the value of different assets and aggregate them into a single metric.
- **Logic**: Reserve quantities are normalized by decimal precision and multiplied by end-of-day price feeds. The values of both assets in a pair are summed to determine the total value locked per pool. These pool-level values are then aggregated to calculate the total TVL for Fathom DEX. Forward-filling logic is applied to maintain continuity on days where no transactions occur for specific pools.

*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)