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).

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Gearbox

# Gearbox Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets deposited into Gearbox pools and the net equity held by borrowers within credit accounts. It is used as a leading indicator of the protocol's capacity to support leverage-enabled trading, farming, and borrowing activities. For Gearbox V1, TVL is represented solely by pool expected liquidity. For Gearbox V3, TVL is calculated as the sum of pool expected liquidity and borrower equity (total collateral minus debt) across active credit accounts.

## 2. Data sources

- **Blockchain events**: `Borrow` and `Repay` events from `PoolV3` contracts, ERC-20 token transfers, and daily state reads of pool liquidity, pool borrows, credit account books, and credit account debts, covering Ethereum, Monad, and Plasma
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Gearbox V1 and Gearbox V3 pool expected liquidity tracking

- **Purpose**: Capture the total liquidity available in Gearbox V1 and Gearbox V3 lending pools.
- **Logic**: For Ethereum and Plasma, expected liquidity is extracted from daily state reads of the pools. For Monad, pool expected liquidity is reconstructed by summing pool cash and total borrowed principal. Pool cash is calculated by aggregating net ERC-20 token transfers to the pool address, while borrowed principal is tracked by aggregating changes from `Borrow` and `Repay` events from `PoolV3` contracts.
- **Key fields**: `expected_liquidity`, `amount`, `pool_address`, `token_address`

### Component B: Gearbox V3 borrower equity tracking

- **Purpose**: Calculate the net equity of active borrowers in Gearbox V3 credit accounts.
- **Logic**: Borrower equity is calculated as total credit account collateral minus outstanding debt. For Ethereum and Plasma, collateral balances and debts (representing principal plus accrued interest) are extracted from daily state reads of credit accounts. For Monad, collateral and debt (representing principal only) are reconstructed from historical token flows and principal changes. Staked wrapper assets are mapped to and valued as their underlying staked assets. Curve LP collateral on Monad and Plasma is valued at net asset value based on the underlying pool reserves, whereas LP tokens on other chains are valued using their market prices. Specific depegged or unpriced assets, such as Stream Finance xUSD on Plasma, are excluded and valued at zero.
- **Key fields**: `credit_manager_address`, `account_address`, `token_address`, `amount`, `total_debt`

### Component C: Decimal normalization and USD conversion

- **Purpose**: Normalize asset quantities and convert them to a unified USD valuation.
- **Logic**: Native asset amounts from pool expected liquidity and borrower equity are normalized by their respective decimal precisions. Normalized amounts are then multiplied by end-of-day asset prices to determine their USD value. Borrower equity is calculated directly in USD, while pool expected liquidity is converted using daily price feeds.
- **Key fields**: `tvl`, `amount_usd`, `price_usd`

### Component D: Aggregation and forward-filling

- **Purpose**: Combine TVL components and ensure daily data continuity.
- **Logic**: Pool expected liquidity and borrower equity are aggregated by day, chain, and product. To prevent data gaps, a forward-fill strategy is applied to carry the last recorded TVL values forward for days with missing state reads or event activity. Any remaining empty intervals are filled with zeros.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `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.

GearboxGEAR

Total value locked

Total value locked

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