Liquidity providers deposit funds into Katana and receive trading fees from traders (supply-side fees).

Katana is a non-custodial exchange protocol built on Ronin. Katana was founded by Sky Mavis and launched in 2021.

The Ronin team own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

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Exchanges (DEX)

Katana (Ronin)

# Katana Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) for Katana represents the total USD value of assets deposited in the DEX's liquidity pools. The metric answers the business question: "How much value is currently locked in Katana's AMM pools?" The calculation approach tracks daily changes in pool reserves (net deposits) and treats TVL as the cumulative sum of these net deposit flows over time.

## 2. Data sources

The TVL calculation relies on the following raw data sources:

- **Katana AMM events**: Parsed `Sync` events from Katana v1 pairs on Ronin blockchain that capture reserve balance updates for each trading pair
- **Trading pair creation events**: Parsed `PairCreated` events from Katana v1 Factory contract on Ronin that establish the relationship between pair contracts and their underlying tokens
- **Token metadata**: Token registry data containing token symbols, decimals, and standards for proper decimal adjustment
- **Manual token overrides**: Manually curated token information for Katana-specific tokens not available in the standard registry (specifically Smooth Love Potion/SLP)
- **End-of-day price feeds**: Daily token price data in USD for converting token amounts to dollar values

## 3. Step-by-step calculation

### Component A: Reserve update extraction
- **Purpose**: Capture all changes to AMM pool reserves from blockchain events
- **Logic**: Extract `Sync` events emitted by Katana pair contracts on Ronin chain. These events contain the updated reserve amounts for both tokens in each trading pair (`reserve0` and `reserve1` fields). Each event represents a moment when pool reserves changed due to trading, deposits, or withdrawals
- **Key fields**: `block_timestamp` for timing, `address` for the pair contract, `reserve0_amount` and `reserve1_amount` for the new reserve balances

### Component B: Trading pair metadata enrichment
- **Logic**: Join reserve update events with trading pair metadata derived from Factory `PairCreated` events. This establishes which token addresses correspond to `token0` and `token1` in each pair. Retrieve token decimals from the token registry, with manual overrides for tokens not in the standard registry (like SLP token). Create human-readable pair names by combining token symbols
- **Key fields**: `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, and `account_name` for the trading pair

### Component C: Decimal correction and daily aggregation
- **Purpose**: Convert raw token amounts to human-readable values and aggregate to daily level
- **Logic**: Divide raw reserve amounts by 10 raised to the power of each token's decimals to get actual token quantities. For each day and trading pair, identify the last reserve update within that day using window functions. This gives the end-of-day reserve balances for each token in each pair
- **Key fields**: Decimal-corrected `reserve0_amount` and `reserve1_amount` values aggregated to daily timestamps

### Component D: Net flow calculation
- **Purpose**: Calculate daily changes in pool reserves to determine net deposits/withdrawals
- **Logic**: For each trading pair and day, calculate the change in reserves compared to the previous day using lag functions. If it's the first day for a pair, use the full reserve amount as the initial deposit. This produces daily net flow amounts for both tokens in each pair, where positive values indicate net deposits and negative values indicate net withdrawals
- **Key fields**: `token0_amount` and `token1_amount` representing daily net changes in reserves

### Component E: USD conversion
- **Purpose**: Convert token amounts to USD values for aggregation
- **Logic**: Join daily net flow amounts with end-of-day token prices. Multiply each token's net flow amount by its USD price on the corresponding day. Handle missing prices by defaulting to zero value. Sum the USD values of both tokens in each pair to get the total net deposit value for that pair on that day
- **Key fields**: `net_deposits` representing the total USD value of daily net flows for each trading pair

### Final aggregation
- **Combining components**: Sum net deposits across all trading pairs for each day to get protocol-wide daily net deposits
- **Currency conversion**: Already completed in Component E using end-of-day price feeds
- **Time aggregation**: Daily boundary logic based on block timestamps truncated to day level
- **Final calculation**: TVL equals the net deposits value, as the metric represents the cumulative value of net deposits flowing into the protocol's liquidity pools. The finalization process ensures proper schema validation and fills any gaps in the time series with zeros where appropriate

*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.

Katana (Ronin)

Total value locked

Total value locked

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