# XRPL AMM Total value locked Methodology

## 1. Overview

Total value locked measures the total USD value of assets deposited in XRPL AMM liquidity pools. TVL represents the combined value of both sides of each XRPL AMM pool's reserves and serves as a leading indicator of available liquidity for trading activity. The metric excludes specific pools where XRPL CLOB-derived token prices are inconsistent with XRPL AMM reserve ratios, indicating data quality issues.

## 2. Data sources

- **Blockchain data**: End-of-day reserve snapshots for XRPL AMM pools from hourly forward-filled balance tracking on XRP Ledger
- **External data**: End-of-day price feeds for pool assets sourced from XRPL CLOB trading pairs
- **Pool exclusions**: Static denylist of 9 pool addresses with price data anomalies

## 3. Step-by-step calculation

### Component A: Reserve snapshot extraction

- **Purpose**: Capture end-of-day liquidity positions for all active XRPL AMM pools
- **Logic**: Hourly reserve data is forward-filled across all pools to ensure continuous coverage even during periods of no transaction activity. For each pool and day, the final hourly snapshot is selected as the end-of-day position. Only pools with positive reserves on both sides are included.
- **Key fields**: `pool_address` (pool identification), `token_0` and `token_1` (paired assets), `reserve_0` and `reserve_1` (asset quantities)

### Component B: USD valuation and filtering

- **Purpose**: Convert reserve quantities to USD values and exclude anomalous pools
- **Logic**: Each pool's reserves are joined to end-of-day price feeds for both tokens. TVL is calculated as the sum of `reserve_0 × token_0_price` and `reserve_1 × token_1_price`. Pools from the denylist are excluded due to extreme reserve imbalances (5000x+ ratios) or one-sided pricing where XRPL CLOB prices are inconsistent with actual deposited liquidity. The 9 excluded pools include addresses such as rKcCCysbGYNA1NvrbWvoVYjMHoFKYjqi3o (NET/XRL) and rsX9HZXeXs2km8T55TpXmpBXTpe56jamJe (XRP/Laugh), which exhibited peak values from $14M to $71.9B driven by inflated token prices relative to reserve composition.

### Component C: Aggregation

- **Purpose**: Sum pool-level TVL to product-level totals
- **Logic**: Pool TVL values are aggregated by timestamp to produce daily totals. Missing days are filled with zeros. Daily granularity with UTC day boundaries.

*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)

Through the use of blockchain and modern APIs, Ripple enables financial institutions who are part of the network, RippleNet, to send money globally, instantly, reliably and for fractions of a penny. RippleNet is built on top of Ripple’s consensus ledger, XRP Ledger (XRPL).

Ripple is the leading provider of crypto-enabled solutions for businesses. Ripple was founded by Chris Larsen and Jed McCaleb and launched in 2012 (previously OpenCoin).

XRP tokenholders own and govern Ripple's consensus ledger 'XRP Ledger' (XRPL). Ripple's investors include a16z, Pantera Capital, Route 66 Ventures, etc.