# Uniswap V4 Total value locked Methodology

## 1. Overview

Total value locked (TVL) is defined as the measure of the total value of on-chain deposits within Uniswap V4. A singleton architecture is utilized, where all assets across all pools on each supported chain are custodied within a single `PoolManager` contract. Deposited assets are tracked at the asset level rather than the individual pool level, with pool addresses designated as 'N/A'. This metric is used as a leading indicator for trading liquidity and protocol utility.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers and native asset transfers to and from `PoolManager` contracts, covering Ethereum, Arbitrum, Base, Optimism, and 7 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Uniswap V4 asset flow extraction

- **Purpose**: Extract daily net flows of ERC-20 and native assets for the Uniswap V4 `PoolManager` contracts
- **Logic**: Daily net flows of ERC-20 and native assets are extracted from transfers interacting with the designated `PoolManager` contract address on each chain. Specific low-liquidity or excluded assets are filtered out on certain chains, such as designated addresses on BNB Chain and Ethereum. To prevent numerical overflow during aggregation, raw transfer amounts are split into quotient and remainder buckets using a base divisor of one trillion, aggregated daily, and subsequently recombined.
- **Key fields**: `timestamp`, `token_address`, `amount`, `value`, `account_address`

### Component B: Uniswap V4 decimal normalization and symbol mapping

- **Purpose**: Normalize asset flows by decimal precision and map assets to their canonical symbols
- **Logic**: Recombined daily net flows are normalized by the decimal precision of each asset using asset metadata. Asset addresses are mapped to their canonical symbols to ensure consistent identification and to prevent the double-counting of wrapped native assets. Because a singleton architecture is utilized, individual pool addresses are designated as 'N/A', and flows are aggregated at the asset level.
- **Key fields**: `decimals`, `symbol`, `delta_tvl`

### Component C: Uniswap V4 cumulative balance tracking and zero-floor guard

- **Purpose**: Calculate the running balance of deposited assets and prevent negative values
- **Logic**: Daily net flows are aggregated cumulatively over time for each chain and asset. A zero-floor guard is applied to the cumulative sum using a greatest-value function to ensure that any calculated negative balances are clamped to zero. Missing days in the time series are filled forward to maintain a continuous daily record of asset balances.
- **Key fields**: `tvl`

### Component D: Uniswap V4 USD conversion and final aggregation

- **Purpose**: Convert asset balances to USD and aggregate to the protocol level
- **Logic**: Cumulative daily asset balances are multiplied by end-of-day asset prices to determine the USD value of each asset. The USD values are then aggregated across all assets and chains to produce the final daily Total Value Locked (TVL) metric for Uniswap V4. Daily boundaries are defined using UTC midnight.
- **Key fields**: `price_usd`, `tvl`

*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

Exchanges (DEX)

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

Uniswap is a non-custodial exchange protocol built on Ethereum. Uniswap was founded by Hayden Adams and launched in 2018.

UNI tokenholders own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Uniswap's investors include Paradigm, a16z, USV, etc.

Uniswap V4

Total value locked

Total value locked

Chain breakdown