# Gearbox V1 Total value locked Methodology

## 1. Overview

Total value locked (TVL) is measured as the total value of assets deposited into Gearbox V1 lending pools. The total liquidity available for passive lenders to earn interest and for active credit account users to utilize as leverage is represented by this metric. It is utilized as a leading indicator of the protocol's capacity to support leveraged trading and borrowing activities. For Gearbox V1, TVL is calculated based on the expected liquidity of the lending pools, which accounts for the total underlying assets deposited by liquidity providers.

## 2. Data sources

- **Blockchain events**: State queries of pool expected liquidity and pool configurations from Gearbox contracts, covering Ethereum
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pool identification and filtering

- **Purpose**: Identify and filter Gearbox V1 pools
- **Logic**: Pool metadata is retrieved to identify active Gearbox pools. Pools are filtered to include only those belonging to the V1 version of the protocol.
- **Key fields**: `pool_address`, `version`, `product_id`

### Component B: Expected liquidity extraction

- **Purpose**: Retrieve the raw expected liquidity for each Gearbox V1 pool
- **Logic**: The expected liquidity is extracted from pool state queries. The total cash in the pool plus the principal of active loans is represented by this value.
- **Key fields**: `expected_liquidity`, `token_address`

### Component C: Decimal normalization and USD conversion

- **Purpose**: Normalize raw asset balances and convert them to USD
- **Logic**: Raw expected liquidity amounts are normalized by the decimal precision of each pool's underlying asset. The normalized balances are then multiplied by end-of-day asset prices to determine the USD value.
- **Key fields**: `tvl`, `price_usd`

### Component D: Temporal aggregation and forward-filling

- **Purpose**: Aggregate TVL daily and handle missing data points
- **Logic**: Daily TVL values are aggregated by pool and asset. A forward-filling strategy is applied to ensure the last known TVL value is carried forward for any days with missing state reads, maintaining a continuous daily time series.
- **Key fields**: `timestamp`, `tvl`

*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

Lending

Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

Gearbox V1

Total value locked

Total value locked

Chain breakdown