Overcollateralized borrowers deposit funds into Prisma Finance and receive mkUSD stablecoin.

Prisma Finance is a non-custodial stablecoin protocol built on Ethereum. Prisma Finance was founded by an anonymous team and launched in the fall of 2023.

PRISMA tokenholders own & govern the protocol. They currently take all of the total fees paid by borrowers (revenue). Prisma Finance’s investors include Michael Egorov, OKX Ventures, and Frax Finance.

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Prisma Finance

# Prisma Finance Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) measures the USD value of all tokens deposited across Prisma Finance's lending protocol. This metric tracks assets held in collateral accounts created by the Prisma Finance factory contract, plus assets in the stability pool. TVL is calculated by identifying protocol accounts, tracking their token balances over time, converting to USD, and aggregating the total value.

## 2. Data sources

- **Prisma Finance factory events**: Parsed `NewDeployment` events from the Prisma Finance factory contract on Ethereum that create new collateral accounts
- **Token balance changes**: Daily token balance changes across identified protocol accounts from Ethereum transaction traces and event logs
- **Price feeds**: End-of-day token price feeds providing USD conversion rates
- **Token metadata**: Token information including symbols and decimal precision for proper balance calculations

## 3. Step-by-step calculation

### Component A: Account identification
- **Purpose**: Identify all Prisma Finance collateral accounts that should be included in TVL calculation
- **Logic**: Extract account addresses from Prisma Finance factory `NewDeployment` events on Ethereum. Each event contains a `troveManager` field that represents a newly created collateral account address. Additionally, include a hardcoded stability pool address `0xed8b26d99834540c5013701bb3715fafd39993ba`
- **Key fields**: `troveManager` address from factory events, converted to string format for account identification

### Component B: Token balance tracking
- **Purpose**: Calculate daily token balance changes across all identified protocol accounts
- **Logic**: For each identified account address, track all token balance changes using Ethereum transaction data. Calculate the net change in token balances for each day. For the stability pool, exclude the mkUSD token (`0x4591dbff62656e7859afe5e45f6f47d3669fbb28`) from balance calculations to avoid double-counting protocol-issued tokens
- **Key fields**: Daily `balance` changes per `account_address`, `token_address`, and `timestamp`

### Component C: Cumulative balance calculation
- **Purpose**: Convert daily balance changes into running token balances
- **Logic**: Apply cumulative sum to daily balance changes using window functions, partitioned by account address and token address, ordered by timestamp. This creates a running total of token balances held in each account over time
- **Key fields**: Cumulative `balance` representing total tokens held at each point in time

### Component D: Time series completion
- **Purpose**: Ensure continuous daily time series with no gaps
- **Logic**: Forward-fill missing dates for each account and token combination. If an account has no balance change on a given day, carry forward the previous day's balance to maintain continuity
- **Key fields**: Gap-filled `balance` values ensuring complete daily time series

### Component E: USD conversion
- **Purpose**: Convert token balances to USD values using market prices
- **Logic**: Join token balances with end-of-day price feeds, matching on timestamp, chain, and token address. Multiply token balance by USD price to get USD value. Filter to include only positive balances to exclude accounts with zero or negative positions
- **Key fields**: `amount` in USD calculated as balance multiplied by `price_usd`

### Final aggregation
- **Combining components**: Sum all USD amounts across all accounts and tokens for each day. Each USD amount represents the value of tokens held in protocol accounts
- **Currency conversion**: USD conversion occurs at the token balance level using end-of-day prices before aggregation
- **Time aggregation**: Daily boundaries with forward-filling to ensure no gaps in the time series
- **Final calculation**: Total Value Locked equals the sum of all positive USD token balances held across Prisma Finance collateral accounts and stability pool, with net deposits serving as the TVL value directly

*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.

Prisma FinancePRISMA

Total value locked

Total value locked

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