# Jupiter Lend Total value locked Methodology

## 1. Overview

Total value locked (TVL) is used to measure the total value of assets deposited into Jupiter Lend on Solana. It is utilized as a key indicator of the protocol's liquidity, borrowing capacity, and overall user adoption. Assets are deposited into Jupiter Lend to earn yield or to be utilized as collateral. TVL is calculated by aggregating active deposits, including both standard liquidity supplies and specialized Earn deposits, and converting their values to USD.

## 2. Data sources

- **Blockchain events**: `Deposit` from the `Lending` program, `Operate` from the `Liquidity` program, and SPL token `Mint` and `Burn` instructions, covering Solana
- **External data**: End-of-day asset price feeds and internal exchange rate feeds

## 3. Step-by-step calculation

### Component A: Earn market identification and share flow tracking

- **Purpose**: Identify Earn markets and track the minting and burning of Earn share assets.
- **Logic**: Earn markets are identified by extracting distinct protocol and share asset mint accounts from `Deposit` within the `Lending` program. Daily share flows for these Earn markets are calculated by aggregating SPL token `Mint` and `Burn` instructions for the identified share assets.
- **Key fields**: `token_address`, `amount`, `timestamp`

### Component B: Standard liquidity flow tracking

- **Purpose**: Track standard asset deposits and withdrawals excluding Earn markets.
- **Logic**: Standard liquidity flows are captured from `Operate` within the `Liquidity` program. Deposits and withdrawals are aggregated daily by asset. Flows associated with Earn protocols or Earn share assets acting as collateral are explicitly excluded to prevent double-counting.
- **Key fields**: `token_address`, `amount`, `timestamp`

### Component C: Exchange rate interpolation and share balance calculation

- **Purpose**: Determine daily exchange rates and calculate cumulative asset balances.
- **Logic**: Observed supply exchange rates are retrieved from internal exchange price feeds. For days without direct observations, exchange rates are calculated using log-linear interpolation between the nearest preceding and succeeding observed rates. Daily asset flows are converted into share-equivalent flows by dividing the flow amount by the day's exchange rate. Cumulative share balances are then calculated and multiplied by the daily exchange rate to determine the current asset balance.
- **Key fields**: `supply_exchange_price`, `flow`, `timestamp`

### Component D: Decimal normalization and USD conversion

- **Purpose**: Normalize asset balances and convert them to USD.
- **Logic**: Cumulative asset balances are normalized by dividing by the asset's decimal precision. The normalized balances are then multiplied by end-of-day asset prices to calculate the final TVL in USD.
- **Key fields**: `balance`, `price_usd`, `tvl`

*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

Jupiter aggregates liquidity from multiple non-custodial exchanges. Integrators set custom fees. Liquidity providers deposits funds into the perpetual exchange. Both receive fees from traders (supply-side fees).

Jupiter is a non-custodial DEX aggregator and exchange for perpetual contracts built on Solana. Jupiter was founded by an pseudonymous founder meow and launched in 2021.

JUP token holders own and govern the protocol. They currently take a cut of the total perpetual and integrator trading fees paid by traders (revenue). Jupiter's investors include White Hilt Capital, etc.
