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 Total value locked Methodology

## 1. Overview

MerkleTrade's Total Value Locked (TVL) represents the total USD value of assets held in MerkleTrade's house liquidity provider vaults on the Aptos blockchain. The metric tracks vault balances containing two types of USDC tokens: LayerZero USDC (lzUSDC) and wrapped USDC, providing insight into the protocol's liquidity depth and user deposits.

## 2. Data sources

- **Aptos blockchain resources**: On-chain state data containing vault balance information stored in Aptos account resources
- **End-of-day token price feeds**: USD price data for accurate valuation of vault assets
- **Token metadata**: Decimal precision information for proper token amount calculations

## 3. Step-by-step calculation

### Component A: Vault balance extraction
- **Purpose**: Extract current token balances from MerkleTrade's house LP vaults on Aptos
- **Logic**: Query Aptos resources table for vault state data, specifically targeting two vault types: one containing LayerZero USDC and another containing wrapped USDC. Filter resources by specific data types that match MerkleTrade's house LP vault structures. Extract the `coin_store.value` from the JSON data structure to get actual token amounts stored in each vault
- **Key fields**: `block_timestamp`, `data_type` (vault identifier), `coin_store.value` (token balance), `token_address` (derived from vault type)

### Component B: Daily balance aggregation  
- **Purpose**: Calculate daily vault balances by taking the most recent balance recorded each day
- **Logic**: Group vault balance data by day, chain, and token address. Use row numbering ordered by block timestamp descending to identify the latest balance record for each day. This ensures we capture the end-of-day vault state rather than intraday fluctuations
- **Key fields**: `timestamp` (truncated to day), `amount` (vault balance), `row_num` (ranking for latest daily value)

### Component C: USD conversion and decimal correction
- **Purpose**: Convert token amounts to standardized USD values  
- **Logic**: Apply decimal correction based on token metadata to ensure proper token unit calculations. Convert corrected token amounts to USD using end-of-day price feeds. This handles the different decimal precisions between lzUSDC and wrapped USDC tokens
- **Key fields**: `net_deposits` (USD-converted balance), price and decimal correction factors

### Final aggregation
- **Combining components**: The net deposits from vault balances directly represent TVL since they reflect the total value of user deposits held in MerkleTrade's liquidity vaults
- **Currency conversion**: All token amounts are converted to USD using end-of-day pricing to ensure consistent valuation
- **Time aggregation**: Data is aggregated to daily boundaries, taking the final vault balance recorded each day
- **Final calculation**: TVL equals the sum of USD-converted vault balances across all supported token types (lzUSDC and wrapped USDC), with data validation and gap filling applied to ensure complete time series coverage

*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.

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