# Lighter Net deposits Methodology

## 1. Overview

Net deposits is measured as the dollar value of user assets deposited in the smart contracts of Lighter. Capital commitment and overall protocol trust are assessed by investors using this metric. User balances are tracked across the exchange order book and custody contracts. The metric is calculated as the time-weighted average USD value of all locked assets across supported chains.

## 2. Data sources

- **Blockchain events**: ERC-20 transfers to and from bridge and custody contracts, and state-read order book balances, covering Ethereum, Arbitrum, and Robinhood Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Order book balance extraction

- **Purpose**: Capture user balances held directly within the Lighter exchange order book
- **Logic**: Order book balances are retrieved via state reads for Lighter. Active user assets committed to the order book are represented by these balances.
- **Key fields**: `account_address`, `token_address`, `net_deposits`

### Component B: Bridge and custody transfer tracking

- **Purpose**: Track user deposits and withdrawals through the protocol's bridge and custody contracts
- **Logic**: ERC-20 transfers are monitored for specific bridge and custody addresses. Deposits are identified as transfers where the recipient is the bridge address, and withdrawals are identified as transfers where the sender is the bridge address. For Ethereum and Arbitrum, transfers of USDC assets are tracked using the bridge address `0x3b4d794a66304f130a4db8f2551b0070dfcf5ca7`. For Robinhood Chain, multi-asset transfers (including USDG and tokenized stock assets) are tracked using the custody address `0x94bab9693ba2f6358507effcbd372b0660afff9d`. Withdrawals are subtracted from deposits to calculate net transfer balances.
- **Key fields**: `to_address`, `from_address`, `token_address`, `amount`

### Component C: Balance aggregation and daily propagation

- **Purpose**: Combine order book balances and net bridge transfers into a continuous daily time series
- **Logic**: Order book balances and net bridge transfer balances are aggregated. To ensure daily continuity for all assets, including those with fluctuating daily prices such as tokenized stock assets, balances are carried forward daily.
- **Key fields**: `timestamp`, `chain_id`, `token_address`, `net_deposits`

### Component D: Decimal normalization and USD conversion

- **Purpose**: Convert asset balances into their USD equivalent values
- **Logic**: Raw asset quantities are normalized by dividing by the decimal precision defined in the asset metadata. The normalized quantities are then multiplied by end-of-day asset prices to determine the daily USD value of net deposits.
- **Key fields**: `net_deposits`, `decimals`, `asset_price`

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

Value of user assets deposited in the protocol.

Net deposits

Lighter

Lighter generates revenue through trading fees charged to takers on its on-chain order book. The protocol retains all fees as revenue.

Lighter is an app-specific zk-rollup (L2) purpose-built for order book trading. It operates its own chain with a custom execution environment, settling to Ethereum. The protocol supports perpetual futures and spot markets with sub-second finality and zero MEV.

Lighter team and investors own and govern the protocol. Lighter's investors include a16z, Lightspeed, Coatue, etc.

LighterLIT

Net deposits

Net deposits

Competitive landscape

Chain breakdown