# Pendle Yield Tokenization Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Pendle Yield Tokenization measures the total value of assets deposited into the protocol's yield-stripping markets. This represents the underlying value of assets wrapped into Standardized Yield (SY) tokens that are held within Pendle Market and Yield Token (YT) contracts. This metric serves as a leading indicator of liquidity and the volume of assets participating in Pendle's yield tokenization and trading ecosystem.

## 2. Data sources

- **Blockchain events**: `CreateNewMarket` events from `MarketFactoryV2`, `MarketFactoryV3`, `MarketFactoryV4`, `MarketFactoryV5`, `MarketFactoryV6`, and `MarketFactoryV7` contracts, plus ERC-20 token transfers, covering Ethereum, Arbitrum, Base, BNB Chain, and 8 other chains.
- **External data**: End-of-day exchange rates and redeem factors for Standardized Yield (SY) tokens, and end-of-day price feeds for underlying assets.

## 3. Step-by-step calculation

### Component A: Market and asset identification

- **Purpose**: Identify all active Pendle markets and their associated contract addresses for balance tracking.
- **Logic**: `CreateNewMarket` events are parsed from `MarketFactoryV2`, `MarketFactoryV3`, `MarketFactoryV4`, `MarketFactoryV5`, `MarketFactoryV6`, and `MarketFactoryV7` contracts to extract Market and Principal Token (PT) addresses. These addresses are joined with token mapping metadata to identify the corresponding Standardized Yield (SY) and Yield Token (YT) addresses for each market.
- **Key fields**: `market_address`, `pt_address`, `yt_address`, `sy_address`.

### Component B: Standardized Yield token flow tracking

- **Purpose**: Calculate the quantity of assets held within Pendle Yield Tokenization contracts.
- **Logic**: ERC-20 token transfers for SY tokens are monitored across all supported chains. Inflows are identified where the recipient is a Market or YT contract address, and outflows are identified where the sender is a Market or YT contract address. A rolling cumulative balance of SY tokens is calculated for each market by summing these net flows over time.
- **Key fields**: `from_address`, `to_address`, `value`, `token_address`.

### Component C: Underlying asset conversion

- **Purpose**: Normalize SY token quantities to their underlying asset or yield token equivalents.
- **Logic**: Standardized Yield (SY) token balances are converted to their priced token equivalents using one of two valuation paths. If the yield token is priced more recently than the underlying asset and covers the balance window, the yield token path is selected, where the raw balance is normalized by decimal precision and multiplied by a daily redeem factor. Otherwise, the underlying asset path is selected, where the raw balance is multiplied by the daily exchange rate and the share net asset value in proxy units, then normalized by the underlying asset's decimals. For a specific halved market on Arbitrum, the balance is multiplied by a factor of 0.5. To handle token transitions and prevent stale levels from being carried forward, closing rows with a balance of zero are generated on the days when a token is stepped off.
- **Key fields**: `sy_balance`, `redeem_factor`, `rate`, `nav_in_proxy`, `underlying_decimals`.

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all balances to USD for cross-chain and cross-asset comparison.
- **Logic**: Underlying asset balances are normalized by decimal precision and multiplied by end-of-day price feeds. The values are aggregated by day and chain to produce the total value locked for Pendle Yield Tokenization. Values are zero-filled for any days where activity is not detected to ensure a continuous time series.
- **Key fields**: `timestamp`, `price_usd`, `underlying_decimals`.

*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.

Total value locked

Exchanges (DEX)

Users deposit yield-bearing tokens into Pendle Markets. The yield-bearing token is wrapped and split up into its principal and yield-bearing components, which allows users to execute yield-trading strategies (i.e. earn fixed yield, long yield). Traders pay a swap fee whenever yield-bearing tokens are swapped with its wrapped, principal, or yield-bearing component tokens.

Pendle is a permissionless yield-trading protocol built on Ethereum, HyperEVM, Arbitrum, BNB Chain, Optimism, Base, Berachain, Sonic, Plasma, Monad, X Layer, and Robinhood Chain. Pendle was founded by TN Lee and was launched in 2021.

PENDLE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

Pendle Yield Tokenization

Total value locked

Total value locked

Chain breakdown