# Raydium OpenBook Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of on-chain deposits held within the liquidity pools of Raydium OpenBook. This metric serves as a leading indicator for the liquidity depth available for trading on the Raydium OpenBook decentralized exchange. By tracking the assets residing in the program's vaults, the scale of capital efficiency and market-making activity is quantified.

## 2. Data sources

- **Blockchain events**: Token account balances and trade-related instructions from the Raydium OpenBook program on Solana
- **External data**: End-of-day price feeds for assets deposited within the vaults

## 3. Step-by-step calculation

### Component A: Vault and pool identification

- **Purpose**: Map the relationship between liquidity pools, their respective token vaults, and the assets they contain.
- **Logic**: Liquidity pools associated with Raydium OpenBook are identified by filtering decentralized exchange trades on Solana where the executing program matches the Raydium OpenBook program account. For each identified pool, the base and quote vault account addresses and their corresponding asset mints are extracted. This mapping is used to define the universe of accounts for which balances are tracked.

### Component B: Balance tracking and interpolation

- **Purpose**: Calculate the daily quantity of each asset held within the program's vaults.
- **Logic**: Post-balances are extracted from token balance change records on the Solana blockchain for every identified vault account. To ensure a continuous daily time series, a fill-forward mechanism is applied; the last known balance for a specific account-mint combination is carried forward to subsequent days until a new balance change instruction is recorded. This ensures that TVL is accurately represented even on days with no trading or liquidity provision activity.

### Component C: Valuation and data quality filtering

- **Purpose**: Convert asset quantities into USD values while mitigating the impact of illiquid or manipulated assets.
- **Logic**: To maintain data integrity, pools are excluded from the calculation if they do not contain at least one reliable asset (defined as SOL, USDC, USDT, JitoSOL, wBTC, JLP, or JUP) to prevent TVL inflation from untrusted long-tail asset prices. For the remaining pools, daily asset balances are multiplied by end-of-day price feeds to determine their USD value.

### Component D: Aggregation and normalization

- **Purpose**: Produce the final daily TVL metric for the product.
- **Logic**: The filtered USD values for all assets across all Raydium OpenBook vaults are summed by day. Amounts are normalized by the decimal precision of each asset before final aggregation. The resulting values represent the total liquidity available within the Raydium OpenBook product at the close of each UTC day.

*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)