# Polymarket International Open interest Methodology

## 1. Overview

Open interest is defined as the total USD notional value of all open positions on Polymarket International at a point in time. For Polymarket International, open interest is represented by the total collateral locked within the protocol's settlement contracts. Because prediction market contracts are fully collateralized, the value of the locked collateral is equated to the face value of all active, unresolved positions. This metric is utilized as a leading indicator of speculative activity and capital at risk on the platform.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events and native asset transfers associated with Polymarket International settlement contracts, covering Polygon
- **External data**: End-of-day price feeds for the locked collateral assets

## 3. Step-by-step calculation

### Component A: Token balance change tracking

- **Purpose**: Track daily net flows of collateral assets in and out of the settlement contracts
- **Logic**: Daily net flows of ERC-20 tokens and native assets are extracted for the specified Polymarket International settlement contract addresses (`0x4d97dcd97ec945f40cf65f87097ace5ea0476045` and `0x3a3bd7bb9528e159577f7c2e685cc81a765002e2`). The flow values are normalized by decimal precision during extraction. These daily net flows are then aggregated by contract address, asset address, and day.
- **Key fields**: `timestamp`, `account_address`, `token_address`, `value`

### Component B: Cumulative balance calculation

- **Purpose**: Calculate the running balance of each collateral asset held in the settlement contracts
- **Logic**: Daily net flows are accumulated over time to calculate the running balance of each asset held by the settlement contracts. Gaps between active days are forward-filled to ensure a continuous daily record of asset balances.
- **Key fields**: `timestamp`, `account_address`, `token_address`, `balance`

### Component C: Valuation and open interest aggregation

- **Purpose**: Convert asset balances to USD and aggregate to determine total open interest
- **Logic**: The running balances of the collateral assets are multiplied by their respective end-of-day asset prices to determine the USD value of the locked collateral. These USD values are then summed across all assets and contracts to calculate the daily total TVL for Polymarket International. Because the contracts are fully collateralized, this TVL is mapped directly as the open interest metric for the product.
- **Key fields**: `timestamp`, `tvl`, `open_interest`

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

Total USD notional value of all open positions on a derivatives protocol at a point in time.

Open interest

Prediction markets

Liquidity providers deposit funds into Polymarket and receive trading fees from traders (supply-side fees). Polymarket has also launched a new peer-to-peer order book with no liquidity providers involved.

Polymarket is a non-custodial prediction market protocol built on Polygon. Polymarket was founded by Shayne Coplan and launched in 2020.

Polymarket team & investors own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Polymarket's investors include Polychain, 1Confirmation, ParaFi Capital, etc.

Polymarket International

Open interest

Open interest

Chain breakdown