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 Tvl Methodology

## 1. Overview

Tvl measures the total value of assets deposited into Grove. It represents the aggregate value of all assets held across the protocol's allocator contracts. This metric serves as a primary indicator of the protocol's adoption and the total capital managed by its yield-optimizing strategies.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers associated with specific allocator addresses, covering Ethereum, Base, Avalanche, and Monad
- **External data**: End-of-day price feeds for underlying assets and yield-bearing assets, plus asset metadata

## 3. Step-by-step calculation

### Component A: Allocator account tracking

- **Purpose**: Identifies and captures token activity for the protocol's allocator contracts
- **Logic**: Net token flows are captured for specific allocator addresses on Ethereum, Base, Avalanche, and Monad. These flows are derived from on-chain transfer activity associated with the protocol's smart contracts.
- **Key fields**: `account_address` (allocator identification), `token_address` (asset identification), `amount` (net flow quantity)

### Component B: Balance reconstruction

- **Purpose**: Determines the daily quantity of each asset held by the protocol
- **Logic**: Daily net flows are aggregated per asset and per account. End-of-day balances are reconstructed by calculating the cumulative sum of these flows over time. For days without new transfer activity, the previous day's balance is forward-filled to ensure a continuous time series.
- **Key fields**: `timestamp`, `token_balance`

### Component C: Asset metadata integration

- **Purpose**: Associates balances with relevant token and yield metadata
- **Logic**: Asset metadata, including symbols and decimal precision, is associated with each balance. For yield-bearing assets, additional metadata regarding the underlying asset and the yield-generating mechanism is integrated to facilitate accurate valuation.
- **Key fields**: `token_decimals`, `underlying_address`, `yield_index_normalized`

### Component D: USD conversion and aggregation

- **Purpose**: Normalizes asset balances to USD for cross-chain and cross-asset comparison
- **Logic**: Balances are normalized by decimal precision and converted to USD. For standard assets, end-of-day price feeds are applied. For yield-bearing assets, the USD value is calculated by multiplying the underlying asset's price by the current normalized yield index. Values are aggregated by day and chain to produce the final metric.
- **Key fields**: `price_usd`, `tvl` (USD value)

*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.

GroveGROVE

Total value locked

Total value locked

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