# Solv Vaults Capital deployed Methodology

## 1. Overview

Capital deployed measures the total value of user deposits allocated into investment strategies via Solv Vaults. This metric reflects the scale of assets under management within the protocol's vault infrastructure, primarily focusing on Bitcoin-denominated assets and yield-bearing strategies. Capital deployed is calculated by tracking the total supply of vault-representative assets, including SolvBTC and xSolvBTC, and normalizing their value to USD.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events from vault contracts covering Ethereum, BNB Chain, Arbitrum, Avalanche, and 7 other chains.
- **Blockchain data**: Native account balances for specific protocol-controlled addresses on Bitcoin.
- **External data**: End-of-day price feeds for Bitcoin.

## 3. Step-by-step calculation

### Component A: EVM-based vault supply tracking

- **Purpose**: Captures the circulating supply of vault assets issued on Ethereum-compatible networks.
- **Logic**: ERC-20 `Transfer` events are parsed for specific vault assets, including SolvBTC, xSolvBTC, and specialized variants like SolvBTC.JUP and SolvBTC.ENA. Mints are identified as transfers from the null address, while burns are identified as transfers to the null address. The net daily change in supply is calculated as the sum of minted amounts minus burned amounts. A cumulative sum of these daily changes is maintained to determine the total supply at any given timestamp.
- **Key fields**: `from_address`, `to_address`, `value`, and `block_timestamp`.

### Component B: Bitcoin-native supply tracking

- **Purpose**: Tracks the underlying Bitcoin collateral held in protocol-controlled accounts on the Bitcoin network.
- **Logic**: Native Bitcoin balances are retrieved for a predefined list of core supply addresses. These balances represent the primary collateral backing SolvBTC. Daily net flows are aggregated to calculate the end-of-day balance for each tracked account address. A fill-forward mechanism is applied to ensure balances are recorded for every day, even when no transactions occur.
- **Key fields**: `account_address`, `balance`, and `timestamp`.

### Component C: USD conversion and final aggregation

- **Purpose**: Normalizes all vault supplies into a single USD-denominated metric.
- **Logic**: All extracted supply values are normalized by the respective asset's decimal precision. These normalized quantities are then multiplied by end-of-day price feeds for Bitcoin to derive the USD value of the capital deployed. The values are aggregated across all supported chains and vault types (Solv Vaults and xSolvBTC) to produce the daily total.
- **Key fields**: `supply`, `price_usd`, and `timestamp`.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of capital allocated into investments by an asset manager.

Capital deployed

Liquid staking

Bitcoin holders deposit Bitcoin into Solv Protocol and receive yield from onchain strategies (supply-side fees).

Solv Protocol offers financial services for Bitcoin, including lending, liquid staking, yield generation, and fund management.

Solv Protocol team & investors own and govern the protocol. They currently take a cut of the total yield generated (revenue). Solv Protocol's investors include IOSG, Blockchain Capital, Binance Labs, etc.

Solv Vaults

Capital deployed

Capital deployed

Chain breakdown