# Raydium CPMM Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total market value of all assets deposited in Raydium CPMM liquidity pools. The liquidity available for decentralized trading within the constant product market maker program is represented by this metric. TVL is used as a primary indicator of the protocol's depth and its capacity to facilitate swaps across various asset pairs on Solana.

## 2. Data sources

- **Blockchain events**: Trade activity from the Raydium CPMM program and Solana token account balance updates, covering Solana
- **External data**: End-of-day price feeds for assets held within the liquidity pool vaults

## 3. Step-by-step calculation

### Component A: Raydium CPMM pool and vault identification

- **Purpose**: Identify the on-chain accounts responsible for holding liquidity for Raydium CPMM.
- **Logic**: Trade activity from the Raydium CPMM program is parsed to identify active liquidity pools. For each pool, the unique base vault and quote vault accounts are extracted. These accounts are mapped to their respective token mints to define the scope of assets requiring balance tracking.

### Component B: Raydium CPMM balance tracking

- **Purpose**: Maintain a continuous daily record of asset quantities held in the protocol vaults.
- **Logic**: Token balance changes for the identified vault accounts are captured from Solana account activity. For days where no transactions occur for a specific vault, the last known balance is filled forward to ensure a continuous daily time series. All asset quantities are normalized by their respective decimal precision as defined in asset metadata.

### Component C: Raydium CPMM valuation and pool filtering

- **Purpose**: Convert asset quantities to USD while mitigating data noise from illiquid or manipulated assets.
- **Logic**: Daily asset balances are multiplied by end-of-day USD price feeds. A pool-level reliability filter is applied to exclude pools that do not contain at least one established, reliable asset. Reliable assets are defined as SOL, USDC, USDT, JitoSOL, wBTC, JLP, or JUP. Any pool lacking at least one of these assets is excluded from the TVL calculation to prevent untrusted or manipulated long-tail asset prices from inflating the metric.

### Component D: Final aggregation

- **Purpose**: Consolidate the filtered USD values into a protocol-level metric.
- **Logic**: The filtered USD values for all assets across all Raydium CPMM pools are summed. The data is aggregated at a daily granularity using UTC day boundaries. Any missing values in the final time series are filled with zeros to ensure a complete dataset.

*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

Exchanges (DEX)