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Blockchains (L3)

Hook

# Hook Bridge deposits Methodology

## 1. Overview

Bridge deposits represents the total USD value of tokens held in Hook protocol's bridging infrastructure on Arbitrum. This metric measures the amount of capital locked in Hook's bridge contracts that facilitate cross-chain token transfers. The calculation tracks token balances held by specific bridge addresses and converts them to USD values using end-of-day price feeds.

## 2. Data sources

- **Arbitrum blockchain events**: Parsed `Transfer` events from ERC20 token contracts showing token movements in and out of bridge addresses
- **Arbitrum transaction traces**: Native ETH transfer traces to capture native token balances held by bridge contracts  
- **End-of-day price feeds**: Token price data used for USD conversion of held balances
- **Token metadata**: Token contract information including decimal precision and symbols for proper balance calculations
- **Chain availability data**: Configuration data determining which chains and time periods are included in the final dataset

## 3. Step-by-step calculation

### Component A: Portfolio balance tracking
- **Purpose**: Calculate token balances held by Hook's bridge address on Arbitrum
- **Logic**: The system identifies the specific bridge address (`0x6bc4f2698cd385a04ee0b1805d15e995c45476f6`) and tracks all token movements involving this address. For each token contract, it processes `Transfer` events where the bridge address is either the sender or recipient, calculating net balance changes over time. Native ETH balances are tracked through transaction traces. Token amounts are corrected for decimal precision using token metadata, then converted to USD values using end-of-day price feeds.
- **Key fields**: `balance` (USD value of tokens held), `timestamp` (when balance was calculated), `chain` (Arbitrum chain identifier)

### Component B: Business metadata enrichment  
- **Purpose**: Add protocol and market classification data to the balance information
- **Logic**: Each balance record is enriched with business context identifying this as blockchain infrastructure data. The system assigns `blockchains_l2` as the market sector since Hook operates on Layer 2 networks, `blockchain` as the business segment to categorize this as blockchain infrastructure, and leaves `product_id` as null since this represents protocol-level rather than product-specific metrics.
- **Key fields**: `market_sector_id` (blockchains_l2), `business_segment_id` (blockchain), `product_id` (null)

### Final aggregation
- **Combining components**: Token balances across all assets held by the bridge address are summed to create a total bridge deposits value for each time period
- **Currency conversion**: All token balances are converted to USD using end-of-day price feeds, with proper decimal adjustment based on token metadata
- **Time aggregation**: Data is organized by timestamp with daily granularity, showing the total bridge deposits at each point in time
- **Final calculation**: The final `bridge_deposits` metric represents the sum of USD values for all tokens held by Hook's bridge address on Arbitrum. A forward-fill strategy is applied to handle periods with no balance changes, ensuring continuous data coverage. Results are filtered based on chain availability configuration to include only validated time periods and chains.

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

Value of assets held in a project's bridge contracts.

Hook

Bridge deposits

Bridge deposits

Competitive landscape

Chain breakdown