# Sanctum Reserve Total value locked Methodology

## 1. Overview

Total value locked (TVL) for Sanctum Reserve measures the total value of native SOL held in the protocol's liquidity reserve. This reserve is utilized to provide deep, instant liquidity for liquid staking tokens (LSTs) on Solana, allowing users to swap between various LSTs and native SOL. The assets held in this reserve act as a liquidity buffer to facilitate these immediate redemptions and trades.

## 2. Data sources

- **Blockchain events**: Native SOL transfers and Solana account balance changes, covering Solana
- **External data**: End-of-day price feeds for SOL

## 3. Step-by-step calculation

### Component A: Reserve account balance tracking

- **Purpose**: To identify and track the quantity of native SOL held in the Sanctum Reserve.
- **Logic**: Native SOL balances are monitored for the designated Sanctum Reserve account. Data is parsed from native balance change records on Solana to identify all increases and decreases in the account's SOL holdings. A continuous daily ledger is maintained by aggregating these changes, and missing data points are filled forward from the last known balance to ensure a complete historical record.
- **Key fields**: `account_address`, `amount`, `block_timestamp`

### Component B: Valuation and aggregation

- **Purpose**: To normalize the tracked SOL balances and convert them into a standardized USD valuation.
- **Logic**: The total SOL balance for the reserve account is normalized by its decimal precision. This normalized quantity is multiplied by the end-of-day USD price feed for SOL. The resulting values are aggregated at a daily granularity using UTC day boundaries.
- **Key fields**: `amount`, `price_usd`, `timestamp`

*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.