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

Merkle Trade is a non-custodial perpetual exchange protocol built on Aptos.

MKL tokenholders own and govern the protocol. They do currently take a cut of the total trading fees paid by traders (revenue). Merkle Trade's investors include Arrington Capital, Hashed, etc.

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Merkle Trade

# Merkle Trade Treasury Methodology

## 1. Overview

The MerkleTrace treasury metric measures the total USD value of assets held across MerkleTrace's treasury components on the Aptos blockchain. This includes assets in fee staking vaults, governance wallet holdings, and cumulative treasury flows from the Aires Market. The metric aggregates balances from multiple token types (USDC variants, MKLP liquidity provider tokens, and MKL governance tokens) and provides a comprehensive view of the protocol's treasury health.

## 2. Data sources

- **Aptos blockchain events**: Parsed `Deposit` and `Withdraw` events from the Aires Market contract containing treasury flow data with amount and receiver information
- **Aptos resources table**: On-chain state data for vault contracts and coin stores, providing current balance information for various token types
- **Aptos fungible asset stores**: Modern Aptos token storage mechanism tracking balances for governance wallet assets
- **End-of-day token price feeds**: USD price data for USDC variants, MKLP tokens, and MKL governance tokens
- **Token metadata**: Decimal precision and contract address mappings for proper balance calculations

## 3. Step-by-step calculation

### Component A: Fee staking vault balances
- **Purpose**: Tracks assets held in MerkleTrace's fee staking vaults
- **Logic**: Queries Aptos resources table for vault contracts holding lzUSDC and W_USDC tokens. Filters for specific vault types using the MerkleTrace contract address and vault type identifiers. Extracts daily end-of-day balances by taking the latest resource state per day. Applies forward-fill logic to ensure continuous daily balance records even when no vault state changes occur.
- **Key fields**: `token_address` identifies the specific USDC variant, `amount` contains the vault balance extracted from the coin store value field, `timestamp` provides daily granularity

### Component B: Governance wallet balances
- **Purpose**: Captures multi-token balances in MerkleTrace's governance wallet
- **Logic**: Combines data from both coin stores and fungible asset stores to handle Aptos's migration from coin stores to fungible assets. Tracks multiple token types including USDC variants, MKLP liquidity provider tokens for different pools, and MKL governance tokens. Extracts balances for a specific governance wallet address across all supported token types. Maps fungible asset addresses to coin store addresses for consistency during the transition period. Takes daily end-of-day balances and applies forward-fill to maintain continuity.
- **Key fields**: `token_address` specifies the token contract, `amount` holds the wallet balance, `source` indicates whether data comes from coin store or fungible asset

### Component C: Treasury flow tracking
- **Purpose**: Calculates cumulative treasury balance from Aires Market deposit and withdraw flows
- **Logic**: Processes `Deposit` events as positive amounts when the receiver matches the treasury address, and `Withdraw` events as negative amounts. Filters events to the specific W_USDC token address and treasury receiver address. Aggregates daily deposit and withdraw amounts, then calculates cumulative running totals to determine net treasury position over time. Applies forward-fill to ensure continuous daily records.
- **Key fields**: `amount` represents the deposit or withdrawal amount (negative for withdrawals), `token_address` identifies W_USDC, `token_balance` shows the cumulative treasury position

### Final aggregation
- **Combining components**: All three components are combined using union operations, creating a single dataset with consistent schema including timestamp, chain identifier, token address, and amount fields
- **Currency conversion**: Applies USD conversion using end-of-day price feeds with decimal correction based on token-specific precision requirements. The conversion accounts for different decimal places across USDC variants and MerkleTrace native tokens
- **Time aggregation**: Maintains daily granularity with proper timestamp truncation to day boundaries. Forward-fill strategy ensures no gaps in the time series
- **Final calculation**: The finalize metric treasury macro validates the data schema, ensures proper project identification, and applies a zero-fill strategy for any remaining gaps. Chain availability filters ensure only supported blockchain data is included in the final output

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

Total value of a project's onchain treasury, including its native token.

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