# PrimeFi Lending Total value locked Methodology

## 1. Overview

Total value locked (TVL) is measured as the aggregate value of all on-chain deposits within PrimeFi Lending. It is utilized as a leading indicator for the protocol's liquidity and its capacity to facilitate borrowing activity. Assets deposited into the lending pool are tracked as the primary component of this metric, representing the total collateral base available to the protocol.

## 2. Data sources

- **Blockchain events**: `Deposit` and `Withdraw` events from `LendingPool` contracts, covering XDC
- **External data**: End-of-day price feeds for assets supported by the lending pool

## 3. Step-by-step calculation

### Component A: Asset flow extraction

- **Purpose**: Captures the daily movement of assets into and out of the lending protocol.
- **Logic**: Asset flows are derived from `Deposit` and `Withdraw` events emitted by `LendingPool` contracts. Deposits are treated as positive inflows, while withdrawals are recorded as negative outflows. These flows are captured on the XDC chain and grouped by asset address and day.
- **Key fields**: `token_address` (asset identification), `amount` (quantity of assets)

### Component B: Cumulative balance tracking

- **Purpose**: Calculates the total quantity of assets held by the protocol at the end of each period.
- **Logic**: Net daily flows for each asset are summed. A cumulative total is then calculated by applying a running sum across the historical net flows. For days where no events are emitted, the most recent balance is carried forward to ensure a continuous time series.
- **Key fields**: `amount` (net daily flow), `timestamp` (timing)

### Component C: Decimal normalization and USD valuation

- **Purpose**: Normalizes asset quantities and converts them into a standardized USD value.
- **Logic**: Asset quantities are normalized by decimal precision using asset metadata. These normalized balances are multiplied by end-of-day price feeds to calculate the value in USD. The final metric is aggregated by summing the USD values of all assets held within PrimeFi Lending across all supported markets.

*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

PrimeFi Lending

Total value locked

Total value locked

Chain breakdown