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 (net) Methodology

## 1. Overview

Treasury net measures the total USD value of treasury assets held by MerkleTraде across its various treasury mechanisms on the Aptos blockchain. This metric captures the protocol's net treasury position by combining balances from fee staking vaults, governance wallets, and direct treasury holdings, excluding the protocol's native MKL governance token to focus on external asset reserves. The calculation aggregates multiple USDC token variants held across different treasury components and converts them to USD for a unified treasury valuation.

## 2. Data sources

- **Aptos resource state data**: Blockchain state information capturing the current storage values of smart contracts, including vault balances and wallet holdings
- **Aptos event logs**: Parsed `Deposit` and `Withdraw` events from MerkleTraде contracts tracking treasury fund movements
- **End-of-day token price feeds**: Daily USD price data for USDC variants and LP tokens
- **Token metadata**: Decimal precision and contract information for accurate token amount calculations

## 3. Step-by-step calculation

### Component A: Fee staking vault balances
- **Purpose**: Tracks USDC assets held in MerkleTraде's fee staking vaults on Aptos
- **Logic**: Queries Aptos resource state data for specific MerkleTraде vault contracts that hold two USDC token types: lzUSDC (LayerZero USDC) with address `0xf22bede237a07e121b56d91a491eb7bcdfd1f5907926a9e58338f964a01b17fa::asset::USDC` and W_USDC (wrapped USDC) with address `0x5ae6789dd2fec1a9ec9cccfb3acaf12e93d432f0a3a42c92fe1a9d490b7bbc06::fa_box::W_USDC`. For each day, takes the last available vault state and extracts the coin store values. Forward-fills missing days to ensure continuous daily records
- **Key fields**: `timestamp` (daily), `token_address` (USDC variant identifier), `amount` (vault balance)

### Component B: Governance wallet balances  
- **Purpose**: Tracks multiple token types held by MerkleTraде's governance wallet
- **Logic**: Queries Aptos coin stores and fungible asset stores for governance wallet address `0x3b83ff0d8f5c1ec387b2851242e16d02177aa5a832c334595f24fda5c818743b`. Captures six token types: USDCoin, lzUSDC, W_USDC, and two MKLP liquidity provider token variants (for lzUSDC and W_USDC pools), plus MKL governance tokens. Uses both coin store data structures and fungible asset data structures to capture all token holdings. Takes the last daily value for each token and forward-fills gaps
- **Key fields**: `timestamp` (daily), `token_address` (identifies token type), `amount` (wallet balance), `source` (coin_store or fungible_asset)

### Component C: Treasury balance tracking
- **Purpose**: Calculates net treasury position from deposit and withdrawal flows
- **Logic**: Monitors Aptos event logs for `Deposit` and `Withdraw` events involving W_USDC tokens flowing to/from treasury address `0x3b83ff0d8f5c1ec387b2851242e16d02177aa5a832c334595f24fda5c818743b`. Deposit events contribute positive amounts, withdraw events contribute negative amounts. Aggregates all daily transaction flows and calculates cumulative running balances over time using window functions. Forward-fills missing days to maintain continuous balance records
- **Key fields**: `timestamp` (daily), `token_address` (W_USDC), `amount` (daily flow), `token_balance` (cumulative balance)

### Final aggregation
- **Combining components**: Unions all three components using standardized schema with `timestamp`, `chain_id`, `token_address`, and balance amount. Excludes MKL token amounts from all components using filter `token_address != '0x5ae6789dd2fec1a9ec9cccfb3acaf12e93d432f0a3a42c92fe1a9d490b7bbc06::mkl_token::MKL'`
- **Currency conversion**: Applies USD conversion using end-of-day price feeds matched by token address and date. Corrects for token decimal places using token metadata to ensure accurate USD calculations
- **Time aggregation**: Maintains daily grain throughout the calculation, with forward-filling ensuring no gaps in the time series
- **Final calculation**: Sums all USD-converted treasury balances across components, applies schema validation, and uses zero-filling strategy for any remaining missing periods to produce the final daily treasury net value in USD

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

Total value of a project's treasury excluding its native token.

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