Ink batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Ink is an Ethereum Layer 2 (L2) blockchain built on Optimism's Superchain, focused on providing a secure, scalable infrastructure for Web3 applications.

Kraken team owns and governs the protocol. Kraken's investors include RIT Capital Partners, Hummingbird Ventures, Money Partners Group, etc.

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Blockchains (L2)

# Ink Bridge deposits Methodology

## 1. Overview

Bridge deposits measures the total USD value of assets held in Ink's Layer 2 bridge contracts on Ethereum. This metric tracks the cumulative value locked in the bridging infrastructure that enables users to move assets between Ethereum mainnet and the Ink Layer 2 network. The calculation monitors four key Ethereum smart contracts that comprise Ink's bridging system and aggregates the token and ETH balances across these addresses.

## 2. Data sources

- **Ethereum blockchain events**: Parsed `Transfer` events from ERC20 token contracts to track token movements into and out of bridge addresses
- **Ethereum transaction traces**: ETH transfer traces to monitor native ETH deposits and withdrawals from bridge contracts  
- **Token balance snapshots**: Historical balance data for both ERC20 tokens and ETH across the monitored bridge addresses
- **End-of-day token price feeds**: USD price data for converting token balances to dollar values
- **Token metadata**: Contract addresses, decimal places, and token symbols for proper balance calculations
- **Smart contract information**: Bridge contract addresses and their respective functions in the Ink bridging system

## 3. Step-by-step calculation

### Component A: Bridge address portfolio tracking
- **Purpose**: Monitor token and ETH balances across Ink's four main bridge contract addresses on Ethereum
- **Logic**: The system tracks balances for four specific Ethereum addresses: `0xbd4AbB321138e8Eddc399cE64E66451294325a14` (ETHLockbox), `0x661235a238B11191211fa95D4Dd9E423d521E0Be` (L1ERC721Bridge), `0x5d66c1782664115999c47c9fa5cd031f495d3e4f` (OptimismPortal2), and `0x88ff1e5b602916615391f55854588efcbb7663f0` (L1StandardBridge). For each address, the calculation processes all incoming and outgoing `Transfer` events for ERC20 tokens and ETH transfers to maintain running balance totals over time
- **Key fields**: `timestamp` for temporal tracking, `balance` representing the USD value of holdings, `token_address` for asset identification, and `account_address` for the specific bridge contract

### Component B: Balance aggregation and business context
- **Purpose**: Sum balances across all bridge addresses and add business categorization metadata
- **Logic**: All balances from the four monitored addresses are summed together for each timestamp to calculate total bridge deposits. The aggregated data is tagged with business context including chain identifier (ethereum), market sector (blockchains_l2 for Layer 2 solutions), and business segment (blockchain). Product identification is left null as this represents overall bridge functionality rather than a specific product
- **Key fields**: `bridge_deposits` as the aggregated USD value, `chain_id` identifying Ethereum as the source chain, `market_sector_id` and `business_segment_id` for business categorization

### Final aggregation
- **Combining components**: The individual address balances are summed using a GROUP BY operation on timestamp, chain, and business metadata fields to produce a single bridge deposits value per time period
- **Currency conversion**: All token balances are converted to USD using end-of-day price feeds, with proper decimal adjustment based on each token's contract specifications
- **Time aggregation**: Data is standardized to daily timestamp grains with forward-filling applied to maintain continuity when no balance changes occur
- **Final calculation**: The final bridge deposits metric represents the total USD value of all assets (both ERC20 tokens and ETH) held across Ink's four main bridge contracts at any given time, providing a measure of the total value locked in the bridging infrastructure

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

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

Ink

Bridge deposits

Bridge deposits

Competitive landscape

Chain breakdown