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.

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Grove

# Capital deployed Methodology

## Overview

Capital deployed measures the value of user deposits that are allocated into investments by an asset manager. Since this capital is typically invested to earn yield for clients, it tends to correlate with the manager’s ability to generate revenue.

## Data sources

- Smart contract events and program instructions capturing token supply changes
- On-chain vault state data including exchange rates and share balances
- Token price feeds for USD conversion
- Asset metadata for decimal precision and contract mapping

## Common calculation approaches

### Tokenized asset supply tracking
Outstanding supply is calculated from ERC-20 `Transfer` events emitted by issuers such as BitGo, Securitize, and Ondo Finance. Mint events (transfers from the zero address) and burn events (transfers to the zero address) are aggregated to determine the net circulating supply of tokenized investment products. On Solana, supply is determined from program instructions and token account balance snapshots.

### Yield-generating strategy allocation
Capital deployed into specific investment strategies is tracked through deposit token activities in lending and liquidity protocols. For example, assets are monitored from `Mint` and `Burn` events from `spToken` and `AToken` contracts associated with Spark. This approach focuses on capital actively allocated to yield-generating positions rather than idle reserves.

### Vault-based valuation
For projects such as Ether.fi, capital is determined from vault exchange rates and total share supply. Data is aggregated from liquid vault accountant contracts to value the underlying assets deployed across staking and yield products. This methodology ensures that the valuation reflects the current market value of the assets held within the managed vaults.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of capital allocated into investments by an asset manager.

GroveGROVE

Capital deployed

Capital deployed

Competitive landscape

Chain breakdown