Liquidity providers deposit funds into Perpetual Protocol to earn a share of trading fees (supply-side fees). Perpetual Protocol leverages Uniswap v3's architecture as a pricing engine, enabling traders to access up to 10x leverage. Perpetual Protocol also offers Hot Tub vaults, which operate trading strategies that generate yield from arbitrage profits. 

Perpetual Protocol is an open-source and non-custodial exchange for perpetual contracts built on Optimism. Perpetual Protocol was founded by Shao-Kang Lee & Yenwen Feng and launched in 2019.

PERP token holders own and govern the protocol. Token holders can boost their governance power and earn 15% of trading fees paid by traders (revenue) by locking PERP into vote-escrowed PERP (vePERP). Perpetual Protocol's investors include CMS Holdings, Binance Labs, and Mechanism Capital.

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Perpetual Protocol

# Perpetual Protocol Total value locked Methodology

## 1. Overview

Perpetual Protocol's Total Value Locked (TVL) represents the total USD value of collateral held within the protocol's designated account addresses across Optimism and Gnosis chains. The metric is calculated by tracking the net deposits (total deposits minus withdrawals) in specific collateral accounts that hold user funds for derivatives trading. This approach reflects the protocol's architecture where user collateral is pooled in dedicated smart contract accounts to facilitate perpetual futures trading.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Blockchain transaction data**: Optimism and Gnosis Chain transaction traces and logs to identify all balance changes for designated account addresses
- **ERC-20 token events**: Parsed `Transfer` events from both chains to track token movements into and out of collateral accounts  
- **Native token balance changes**: ETH and xDAI balance modifications from transaction traces
- **Token metadata**: Token contract information including decimal places and token identifiers for proper balance normalization
- **End-of-day price feeds**: USD price data for all tokens held in the tracked accounts to enable currency conversion
- **Smart contract addresses**: Predefined list of collateral account addresses that hold protocol funds

## 3. Step-by-step calculation

### Component A: Portfolio balance tracking
- **Purpose**: Monitor historical token balances for Perpetual Protocol's collateral accounts across Optimism and Gnosis chains
- **Logic**: The calculation focuses on three specific account addresses: one on Optimism (`0xad7b4c162707e0b2b5f6fddbd3f8538a5fba0d60`) and two on Gnosis (`0x8c29f6f7fc1999ab84b476952e986f974acb3824` and `0x5d9593586b4b5edbd23e7eba8d88fd8f09d83ebd`). For each address, all inbound and outbound token transfers are identified through transaction traces and `Transfer` events. This includes both ERC-20 token movements and native token balance changes. Token amounts are normalized using decimal information from token metadata to ensure consistent precision across different token types.
- **Key fields**: Account `address`, token `contract_address`, transfer `amount`, block `timestamp`, and transaction direction (inbound/outbound)

### Component B: USD conversion and net deposits calculation  
- **Purpose**: Convert token balances to USD values and calculate cumulative net deposits for each time period
- **Logic**: Token balances from the portfolio tracking are converted to USD using end-of-day price feeds, ensuring consistent pricing across the time series. For each account and time period, the system calculates net deposits by taking the cumulative sum of all deposits minus withdrawals. This represents the net amount of collateral that users have deposited into the protocol over time. The calculation aggregates across all tracked addresses and chains to provide a protocol-wide view of collateral holdings.
- **Key fields**: USD-converted `balance`, cumulative `net_deposits`, `timestamp`, and `chain_id`

### Final aggregation
- **Combining components**: Net deposits from all tracked addresses across Optimism and Gnosis chains are summed to calculate total protocol collateral
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds with proper decimal adjustment for each token type
- **Time aggregation**: Daily time boundaries are applied with gap-filling logic that assigns zero values for periods with no activity
- **Final calculation**: TVL is set equal to the total net deposits, as this represents the actual collateral value locked in the protocol's accounts. The metric is classified under the derivatives market sector and perpetual business segment, reflecting the protocol's focus on perpetual futures trading

*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.

Perpetual ProtocolPERP

Total value locked

Total value locked

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