# Hydration Lending Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Hydration Lending measures the total value of all assets deposited into the protocol's lending markets. This metric serves as a key indicator of the liquidity available for borrowing and the overall scale of the lending platform. Assets deposited into the protocol are tokenized as interest-bearing atokens, which represent the depositor's claim on the underlying liquidity and accrue interest over time.

## 2. Data sources

- **Blockchain events**: `atoken` supply state records and asset metadata from the Hydration Substrate chain
- **External data**: End-of-day price feeds for supported lending assets

## 3. Step-by-step calculation

### Component A: Atoken supply extraction

- **Purpose**: Capture the total circulating supply of interest-bearing tokens representing user deposits
- **Logic**: Total supply figures for various atokens are extracted from state records on the Hydration Substrate chain. These balances represent the aggregate quantity of each asset currently held within the lending protocol's pools.
- **Key fields**: `atoken_address`, `total_supply`, `timestamp`

### Component B: Asset mapping and normalization

- **Purpose**: Align atoken balances with their underlying assets and correct for decimal precision
- **Logic**: Atoken contracts are mapped to their respective underlying assets using a dimension table that links EVM-compatible addresses to Substrate-native token identifiers. Supply amounts are normalized by the decimal precision specific to each asset, such as 10 decimals for DOT or 18 decimals for WETH, to ensure accurate quantity reporting.
- **Key fields**: `evm_address`, `substrate_address`, `underlying_token_id`, `decimals`

### Component C: Valuation and fill-forward processing

- **Purpose**: Convert asset quantities into a unified USD value and ensure daily data continuity
- **Logic**: Normalized asset balances are multiplied by end-of-day price feeds. For specific assets like WETH, price data is joined based on the asset's unique identifier. A fill-forward mechanism is applied to ensure that the last known balance for any given asset is carried forward to subsequent days if no new state change is recorded. This prevents gaps in the time series and ensures a consistent daily representation of the total value locked.
- **Key fields**: `token_address`, `amount`, `price_usd`

### Component D: Final aggregation

- **Purpose**: Consolidate daily TVL across all lending markets
- **Logic**: USD-denominated values are aggregated by day and chain to produce the final metric. The calculation excludes specific internal assets and focuses on external liquidity provided by users. Daily granularity is maintained using UTC day boundaries.

*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

Lending

Collators aggregate parachain transactions block candidates and producing state transition proofs for validators based on those blocks.

Hydration is a Polkadot parachain specialized in trading, lending, and stablecoin issuance.

HDX holders own and govern the protocol. Hydration’s investors include KR1 plc, Hypersphere, etc.

Hydration Lending

Total value locked

Total value locked

Chain breakdown