# xSolvBTC Capital deployed Methodology

## 1. Overview

Capital deployed for xSolvBTC measures the total value of Bitcoin-backed assets deposited into the Solv Protocol ecosystem specifically through the xSolvBTC product. XSolvBTC functions as a yield-bearing Bitcoin wrapper that allows users to access yield opportunities while maintaining exposure to Bitcoin. This metric represents the total outstanding supply of the xSolvBTC asset, which reflects the total amount of capital actively managed within this specific product.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events from xSolvBTC contracts, covering Arbitrum, BSC, Ethereum, Base, and 6 other chains
- **External data**: End-of-day price feeds for Bitcoin

## 3. Step-by-step calculation

### Component A: xSolvBTC supply event tracking

- **Purpose**: To identify all issuance and redemption activity for the xSolvBTC asset across supported networks
- **Logic**: ERC-20 `Transfer` events are parsed from the specific xSolvBTC asset contracts on each supported blockchain. Mints are identified by filtering for events where the sender is the null address. Burns are identified by filtering for events where the recipient is the null address. These events represent the raw inflow and outflow of capital for the product.
- **Key fields**: `from_address`, `to_address`, `value`

### Component B: Outstanding balance calculation

- **Purpose**: To determine the total quantity of xSolvBTC held by users at any given time
- **Logic**: Daily net changes in supply are calculated by subtracting total daily burns from total daily mints. A cumulative running total of these changes is maintained to track the total outstanding supply for each chain. For days where no transfer activity occurs, the previous day's supply balance is carried forward to maintain a continuous daily record of deployed capital.

### Component C: Normalization and USD conversion

- **Purpose**: To convert asset quantities into a standardized USD value for reporting
- **Logic**: Total outstanding supply amounts are normalized by the decimal precision of the underlying asset. The resulting quantities are multiplied by the end-of-day price of Bitcoin. Final values are aggregated at a daily granularity with UTC day boundaries.
- **Key fields**: `block_timestamp`, `supply`, `price_usd`

*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.

xSolvBTC

Capital deployed

Capital deployed

Chain breakdown