# Polymarket International Total value locked Methodology

## 1. Overview

Total value locked (TVL) is measured as the total value of assets held in the smart contracts of Polymarket International. This metric is utilized as a key indicator of the liquidity available for prediction markets and the overall capital committed by users to the platform. Collateral deposits are held in escrow contracts to secure user positions and guarantee payouts upon market resolution. By tracking the cumulative balance of these escrow accounts, the total capital deployed within the Polymarket International ecosystem is quantified.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events and native asset transfers associated with specific Polymarket International escrow and clearing contracts (`0x4d97dcd97ec945f40cf65f87097ace5ea0476045` and `0x3a3bd7bb9528e159577f7c2e685cc81a765002e2`) on Polygon
- **External data**: End-of-day price feeds for the collateral assets and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Polymarket International daily net flow extraction

- **Purpose**: Extract daily net flows of assets for the designated Polymarket International contract addresses
- **Logic**: Daily net flows of ERC-20 assets and native assets are extracted for the specified contract addresses (`0x4d97dcd97ec945f40cf65f87097ace5ea0476045` and `0x3a3bd7bb9528e159577f7c2e685cc81a765002e2`). These flows are calculated by summing the incoming and outgoing transfers of each asset on a daily basis. The raw transfer values are normalized by the decimal precision of each respective asset using asset metadata.
- **Key fields**: `timestamp` (timing), `value` (transfer quantities), `token_address` (asset identification), `account_address` (contract identification)

### Component B: Polymarket International cumulative balance tracking

- **Purpose**: Calculate the running balance of each asset held in the contracts
- **Logic**: The daily net flows of each asset are accumulated over time using a running sum to determine the total balance of each asset held in the contracts on any given day. To account for days without active transfer events, a forward-fill operation is applied to propagate the last known balance of each asset to subsequent days, ensuring a continuous daily time series.
- **Key fields**: `timestamp` (timing), `balance` (accumulated asset quantities)

### Component C: Polymarket International valuation and aggregation

- **Purpose**: Convert asset balances to USD and aggregate to calculate total TVL
- **Logic**: The daily balance of each asset is multiplied by its corresponding end-of-day asset price in USD. Only positive balances are included in the calculation. The USD values of all assets held across the designated contracts are then summed daily to produce the total value locked for Polymarket International.
- **Key fields**: `timestamp` (timing), `balance` (accumulated asset quantities), `price_usd` (asset price), `tvl` (USD-denominated total value locked)

*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

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

Total value locked

Total value locked

Chain breakdown