# Grove Allocator Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Grove Allocator represents the total value of assets held in yield-bearing positions. Capital is deployed into diversified yield-generating positions across multiple networks. Asset balances held by designated allocator addresses are tracked daily, normalized by decimal precision, and converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: ERC-20 asset transfers for designated Grove Allocator addresses, covering Ethereum, Base, Avalanche, and Monad
- **External data**: End-of-day price feeds, asset metadata, and yield index data

## 3. Step-by-step calculation

### Component A: Grove Allocator asset flow extraction and balance tracking

- **Purpose**: Reconstructs the daily asset balances held by Grove Allocator addresses
- **Logic**: Daily net asset flows are extracted from ERC-20 asset transfers for designated Grove Allocator holder addresses across Ethereum, Base, Avalanche, and Monad. Net flows are aggregated daily per asset and holder address. Cumulative asset balances are calculated by running a cumulative sum of these net flows over time. A daily date spine starting on May 14, 2025 is generated, and balances are carried forward to ensure continuous daily coverage. Only positive balances are retained for downstream calculations.
- **Key fields**: `timestamp` (day-end timestamp), `chain_id` (blockchain identifier), `holder_address` (allocator address), `token_address` (asset contract address), `token_balance` (cumulative asset balance)

### Component B: Grove Allocator position metadata and yield integration

- **Purpose**: Associates asset balances with metadata and yield metrics
- **Logic**: Cumulative asset balances are joined with asset metadata to obtain decimals, symbols, and names. Yield asset metadata is integrated to identify underlying assets, yield mechanisms, and yield types. Daily yield rates and accrued position fees are calculated using daily yield index values from yield tracking sources.
- **Key fields**: `token_decimals` (decimal precision), `underlying_address` (underlying asset address), `daily_yield_rate` (calculated yield rate)

### Component C: Grove Allocator USD valuation and aggregation

- **Purpose**: Converts asset balances to USD and aggregates them to calculate final TVL
- **Logic**: Cumulative asset balances are normalized by decimal precision. USD valuation is performed by multiplying the normalized balances by asset prices resolved through a prioritized hierarchy of sources, including standard price feeds, backup price feeds, yield-adjusted underlying asset prices (calculated by multiplying the yield index by the underlying asset price), external market data, or general asset prices. Daily TVL values are aggregated by chain and product, with missing days populated with zero values, and filtered based on chain data freshness.
- **Key fields**: `tvl` (final TVL in USD), `timestamp` (day-end UTC), `chain_id` (blockchain identifier)

*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

Asset management

Grove borrows via Sky's Allocator Module and deploys capital into curated yield strategies through an ALM (Asset-Liability Management) controller architecture. The protocol generates yield across its positions while management fees are settled off-chain via a Monthly Settlement Cycle between Grove and Sky DAO.

Grove operates as a programmable capital allocator that draws stablecoins from Sky Protocol and deploys them into diversified institutional-grade yield-bearing positions spanning tokenized treasuries, private credit, DeFi lending markets, and curated vaults across multiple chains.

Grove is a DeFi protocol built on Sky (formerly MakerDAO) infrastructure, incubated by Grove Labs and managed by Steakhouse Financial as risk curator.

Grove Allocator

Total value locked

Total value locked

Chain breakdown