Liquidity providers deposit funds into LFJ and receive trading fees from traders (supply-side fees).

LFJ (previously Trader Joe) is a non-custodial exchange protocol built on Avalanche (originally a fork of SushiSwap). LFJ was founded by an anonymous team and launched in 2021.

JOE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). LFJ's investors include Three Arrows Capital, DeFiance Capital, GBV Capital, Mechanism Capital, etc.

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# LFJ Total value locked Methodology

## 1. Overview

Trader Joe TVL measures the total value of assets locked in Trader Joe's liquidity pools across all supported chains and protocol versions. The metric is calculated as the cumulative net deposits (deposits minus withdrawals) into all trading pairs, converted to USD. This represents the total value that liquidity providers have deposited into the protocol's automated market maker (AMM) pools.

## 2. Data sources

The calculation uses several types of blockchain data:

- **Trading pair creation events**: Parsed `PairCreated` events from factory contracts across Ethereum, Arbitrum, BSC, and Avalanche that identify new trading pairs and their token compositions
- **Reserve synchronization events**: Parsed `Sync` events from Avalanche and BSC V1 pairs that track reserve balance changes  
- **Liquidity events**: Parsed deposit and withdrawal events (`DepositedToBin`, `WithdrawnFromBin`, `DepositedToBins`, `WithdrawnFromBins`) from V2, V2.1, and V2.2 liquidity book contracts
- **Fee collection events**: Parsed `FeesCollected` events that track protocol fee withdrawals
- **Trading events**: Parsed `Swap` events from all protocol versions that include fee generation
- **Transaction records**: Ethereum, Arbitrum, BSC, and Avalanche transaction data for user address identification
- **Token metadata**: Token decimals and symbols for proper amount conversion
- **External price data**: End-of-day token price feeds for USD conversion

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identify all Trader Joe trading pairs across protocol versions and chains
- **Logic**: Extract trading pairs from factory contract events across V1 (using `PairFactory_PairCreated` events), V2 (using `LBFactory_LBPairCreated` events), and V2.1/V2.2 (using `LBFactoryV2_LBPairCreated` and `LBFactoryV22_LBPairCreated` events). Each event provides the pair contract address and the two token addresses. Join with token metadata to get token decimals and symbols, then create pair names by concatenating token symbols. Exclude denylisted pairs that have limited price feed support for low liquidity tokens.
- **Key fields**: `account_address` (pair contract), `token0_address`, `token1_address`, `token0_decimals`, `token1_decimals`, `account_name` (token symbol pair)

### Component B: V1 asset flows calculation
- **Purpose**: Calculate daily liquidity changes for V1 trading pairs on Avalanche and BSC
- **Logic**: Process `Pair_Sync` events that contain current reserve amounts for both tokens in each pair. For each day and trading pair, identify the last reserve amounts recorded. Calculate the daily change by subtracting the previous day's reserves from the current day's reserves. For the first day a pair appears, use the full reserve amount as the initial deposit. Apply decimal corrections by dividing raw amounts by 10 raised to the power of token decimals.
- **Key fields**: `reserve0_amount`, `reserve1_amount` converted to `token0_amount`, `token1_amount` after decimal correction

### Component C: V2 asset flows calculation  
- **Purpose**: Calculate daily liquidity changes for V2, V2.1, and V2.2 trading pairs across all chains
- **Logic**: Combine multiple event types to track all asset movements. Include deposits as positive flows from `DepositedToBin` and `DepositedToBins` events, withdrawals as negative flows from `WithdrawnFromBin`, `WithdrawnFromBins`, and `FeesCollected` events, and trading impacts including fees from `Swap` events. For V2.1 and V2.2, amounts are stored as packed hex values that require JavaScript decoding to separate token X and Y amounts. Aggregate all movements daily per trading pair, then apply decimal corrections using token metadata.
- **Key fields**: `token0_amount`, `token1_amount` after combining deposits, withdrawals, and trade fees

### Component D: Net deposits calculation
- **Purpose**: Calculate the total net change in liquidity for each trading pair
- **Logic**: Combine V1 and V2 asset flows into a unified dataset. For each day and trading pair, sum all token0 and token1 amount changes. This represents the net deposit (positive) or withdrawal (negative) activity. Apply the DEX net deposits calculation macro which aggregates flows and handles multi-token scenarios.
- **Key fields**: Combined `token0_amount` and `token1_amount` representing net liquidity changes

### Final aggregation
- **Combining components**: Sum net deposits across all trading pairs and all chains for each day to get protocol-wide liquidity changes
- **Currency conversion**: Convert token amounts to USD by multiplying each token's net deposit amount by its end-of-day price from external price feeds. Handle missing prices by defaulting to zero value.
- **Time aggregation**: Aggregate data on daily boundaries using timestamp truncation to day level
- **Final calculation**: The TVL equals the cumulative sum of daily net deposits in USD. The finalization macro applies schema validation, ensures no data gaps, and implements a fill-zeros strategy for missing days. Chain availability filters are applied to exclude unsupported chains from the final output.

*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.

LFJJOE

Total value locked

Total value locked

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