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.

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Polymarket

# Polymarket Total value locked Methodology

## 1. Overview

Total value locked (TVL) is measured as the total value of on-chain deposits and the tokenized value of user deposits made off-chain. It is used as a leading indicator for prediction market activity and liquidity, though the assets can typically be withdrawn by depositors at any time. TVL is calculated for both Polymarket International and Polymarket US to provide a comprehensive view of the platform's locked capital.

## 2. Data sources

- **Blockchain events**: ERC-20 asset transfers and native asset transfers associated with Polymarket International smart contracts, covering Polygon
- **Off-chain data**: Daily market reports containing open interest data for Polymarket US
- **External data**: End-of-day price feeds for deposited assets

## 3. Step-by-step calculation

### Component A: Polymarket International balance tracking

- **Purpose**: Track the net flows and cumulative balances of assets held in Polymarket International smart contracts
- **Logic**: Daily ERC-20 asset transfers and native asset transfers are extracted for specific Polymarket International contract addresses (`0x4d97dcd97ec945f40cf65f87097ace5ea0476045` and `0x3a3bd7bb9528e159577f7c2e685cc81a765002e2`) on Polygon. These daily net flows are accumulated over time to calculate the running balance for each asset. Continuous daily balances are maintained for each asset across all days.
- **Key fields**: `timestamp`, `account_address`, `token_address`, `balance`

### Component B: Polymarket US open interest tracking

- **Purpose**: Capture the value locked in Polymarket US contracts
- **Logic**: Daily market reports are parsed to extract the open interest for each market symbol. Since Polymarket US contracts are fully collateralized at $1, the open interest is utilized as the total value locked. These values are aggregated daily to determine the total TVL for Polymarket US.
- **Key fields**: `timestamp`, `symbol`, `open_interest`

### Component C: USD conversion and final aggregation

- **Purpose**: Normalize all balances to USD and aggregate the total TVL
- **Logic**: For Polymarket International, cumulative asset balances are normalized by decimal precision and multiplied by end-of-day asset prices to calculate the USD value. For Polymarket US, the open interest values (already denominated in USD equivalent) are aggregated. The USD values from both Polymarket International and Polymarket US are then combined to produce the final daily TVL metric.
- **Key fields**: `timestamp`, `product_id`, `chain_id`, `tvl`

*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.

Polymarket

Total value locked

Total value locked

Competitive landscape

Chain breakdown