Parallel batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Parallel is an L2 smart contract platform for decentralized applications, powered by Arbitrum's Nitro stack. Parallel Finance was founded by Yubo Ruan and initially launched as a DeFi application on Polkadot in 2021.

Parallel team & investors own and govern the protocol. Parallel's investors include Blockchain Capital, Polychain Capital, Coinbase Ventures, etc.

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Parallel

# Parallel Bridge deposits Methodology

## 1. Overview

Bridge deposits measures the total USD value of tokens held in Parallel Finance's bridge addresses. This metric tracks the value of assets that users have deposited into bridge contracts to transfer between different blockchain networks. The calculation monitors specific bridge contract addresses and aggregates the USD value of all tokens (both ERC-20 tokens and native ETH) held in these addresses at the end of each day.

## 2. Data sources

- **Ethereum token balances**: Daily balance snapshots for all tokens held at specified bridge addresses, derived from processing blockchain state changes
- **Token transfer events**: Parsed Ethereum `Transfer` events to track token movements in and out of bridge addresses
- **Ethereum transaction data**: Transaction logs and traces to capture balance changes and contract interactions
- **End-of-day price feeds**: Daily closing prices for all tokens to convert balances to USD values
- **Token metadata**: Contract information including token symbols, names, and decimal places for proper balance calculation
- **ERC-20 contract data**: Token contract state data to accurately determine token balances

## 3. Step-by-step calculation

### Component A: Bridge address identification
- **Purpose**: Identify the specific addresses that serve as bridge deposit contracts for Parallel Finance
- **Logic**: The methodology specifies one primary bridge address on Ethereum (`0x5a961c7d162195a9dc5a357cc168b0694283382e`) that holds deposited tokens awaiting transfer to other chains
- **Key fields**: `account_addresses` containing the bridge contract addresses to monitor

### Component B: Token balance calculation
- **Purpose**: Calculate the daily balance of all tokens held in the specified bridge addresses
- **Logic**: The system processes Ethereum blockchain data to determine end-of-day balances for all token types held at each bridge address. This includes both ERC-20 tokens and native ETH. Balance calculations account for all incoming transfers, outgoing transfers, and any other balance-changing events throughout each day. Token amounts are adjusted for decimal places based on each token's contract specifications
- **Key fields**: `balance` representing the raw token amounts, `timestamp` for daily snapshots, `chain` identifying the blockchain (Ethereum)

### Component C: USD conversion and aggregation
- **Purpose**: Convert all token balances to USD and aggregate them into a single bridge deposits value
- **Logic**: Each token balance is converted to USD using end-of-day price feeds. The conversion process applies proper decimal corrections based on each token's specifications. All USD-converted token balances at the bridge address are then summed to create the total bridge deposits value for each day
- **Key fields**: `bridge_deposits` as the aggregated USD value, with proper decimal and price conversion applied

### Component D: Business categorization
- **Purpose**: Apply standardized business metadata for reporting and categorization
- **Logic**: The metric is categorized with specific business attributes including chain identification, market sector classification as 'blockchains_l2', business segment classification as 'blockchain', and null product identification since this represents protocol-level infrastructure rather than a specific product
- **Key fields**: `chain_id` for blockchain identification, `market_sector_id` set to 'blockchains_l2', `business_segment_id` set to 'blockchain', `product_id` set to null

### Final aggregation
- **Combining components**: All token balances at bridge addresses are summed after USD conversion to create the total bridge deposits value
- **Currency conversion**: End-of-day token prices are used for USD conversion, with proper decimal adjustments applied based on token contract specifications
- **Time aggregation**: Daily snapshots are created with end-of-day timing, and a fill-forward strategy is applied to handle any missing data points
- **Final calculation**: The bridge deposits metric represents the sum of USD values for all tokens held in Parallel Finance bridge addresses at the end of each day, providing a measure of the total value locked in bridge contracts awaiting cross-chain transfers

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

Value of assets held in a project's bridge contracts.

Parallel

Bridge deposits

Bridge deposits

Competitive landscape

Chain breakdown