# Seamless Lending Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets deposited into Seamless Lending. This metric serves as a leading indicator for the protocol's liquidity and its capacity for borrowing and lending activity. Assets deposited into Seamless Lending markets earn interest and may be used as collateral for loans, while the underlying assets are generally available for withdrawal by depositors at any time.

## 2. Data sources

- **Blockchain events**: `ReserveInitialized` events from `LendingPoolConfigurator` contracts and ERC-20 token transfers, covering Base
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Market identification

- **Purpose**: Identify and map the smart contracts associated with each supported lending market
- **Logic**: `ReserveInitialized` events from `LendingPoolConfigurator` contracts are parsed to identify all active lending markets. This process establishes the mapping between the underlying asset and its corresponding interest-bearing token (aToken), stable debt token, and variable debt token addresses
- **Key fields**: `underlying_token_address`, `atoken_address`, `stoken_address`, `vtoken_address`

### Component B: Asset flow tracking

- **Purpose**: Capture the raw volume of deposits and withdrawals across all lending pools
- **Logic**: ERC-20 token transfers are monitored for all mapped aToken contract addresses. Inflows are identified as transfers of the underlying asset to the aToken contract address. Outflows are identified as transfers of the underlying asset from the aToken contract address. Transfers involving specific fallback addresses are mapped to their canonical underlying assets where metadata is unavailable for the original contract
- **Key fields**: `amount` (value), `to_address` (for inflows), `from_address` (for outflows), `token_address` (asset identification)

### Component C: Cumulative balance calculation and USD conversion

- **Purpose**: Calculate the current inventory of assets and normalize the value to USD
- **Logic**: Daily net flows are calculated as total inflows minus total outflows. These net flows are then aggregated chronologically to determine the cumulative balance for each asset. Any negative balances resulting from accounting adjustments are filtered out. Final balances are normalized by asset-specific decimal precision and multiplied by end-of-day price feeds. Values are aggregated to provide a total USD balance per day using UTC boundaries
- **Key fields**: `tvl` (cumulative balance), `price_usd` (valuation)

*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

Lending

Seamless Lending

Total value locked

Total value locked

Chain breakdown