# Polymarket US Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets committed to active contracts on Polymarket US. This metric is utilized as a key indicator of market liquidity, user engagement, and overall trading activity within the prediction market platform. Because Polymarket US contracts are fully collateralized at $1, the total value locked is represented by the aggregate open interest of all active markets. These values are extracted from daily market reports to reflect the total capital held to back active predictions.

## 2. Data sources

- **Off-chain data**: Daily market reports containing open interest and market symbol data, scraped from Polymarket US reports

## 3. Step-by-step calculation

### Component A: Market report ingestion

- **Purpose**: To capture daily market reports containing open interest data.
- **Logic**: Daily market reports are scraped and loaded from the raw data source. The latest daily market report files are identified and filtered to ensure only the most recent data loads are processed.
- **Key fields**: `business_date`, `symbol`, `open_interest`

### Component B: Open interest aggregation

- **Purpose**: To calculate the total value locked based on open interest.
- **Logic**: Because Polymarket US contracts are fully collateralized at $1, the total value locked is represented by the open interest. The open interest values are aggregated by summing the open interest across all active market symbols for each business date. The business date is converted to a timestamp, and the chain identifier is designated as off-chain.
- **Key fields**: `business_date`, `open_interest`

### Component C: Metric finalization and zero-filling

- **Purpose**: To ensure data consistency and fill gaps in the time series.
- **Logic**: The aggregated values are cast to the correct data types, and validation is performed against approved chain and project identifiers. A zero-filling strategy is applied to ensure that days with missing data are populated with zero values, producing a continuous daily time series.
- **Key fields**: `timestamp`, `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.

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 US

Total value locked

Total value locked

Chain breakdown