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

Verse is an automated market maker-based decentralized exchange built on Ethereum. Verse was created by Bitcoin.com, and launched in 2022.

VERSE tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). Verse's investors include Blockchain.com, KuCoin Ventures and others.

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Verse

# Verse Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) represents the total USD value of assets deposited in VerseDX liquidity pools on Ethereum. This metric answers how much capital is currently locked in the protocol's automated market maker (AMM) pools. The calculation tracks net deposits (inflows minus outflows) over time, with TVL representing the cumulative sum of all historical net deposits converted to USD values.

## 2. Data sources

- **Ethereum event logs**: Parsed `PairCreated` events from the VerseDX SwapsFactory contract to identify valid trading pairs
- **Ethereum event logs**: Parsed `Sync` events from VerseDX SwapsPair contracts to track reserve balance changes
- **End-of-day price feeds**: Daily token prices in USD for converting token amounts to dollar values
- **Token metadata**: Token symbols and decimal precision information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Trading pair identification
- **Purpose**: Identifies all valid VerseDX liquidity pools and their token composition
- **Logic**: Extracts trading pair data from `PairCreated` events emitted by the SwapsFactory contract. Each event contains the pair contract address, token0 address, and token1 address. All pairs are assigned a fixed 0.3% fee tier (3000 basis points divided by 1,000,000). Token metadata is joined to retrieve decimal precision and symbols for proper naming.
- **Key fields**: `pair` address, `token0` and `token1` addresses, `decimals` for each token, and constructed `account_name` combining token symbols

### Component B: Reserve tracking
- **Purpose**: Captures all liquidity changes in each trading pair
- **Logic**: Processes `Sync` events emitted by individual pair contracts whenever reserves change due to swaps, deposits, or withdrawals. Each event contains the current `reserve0` and `reserve1` amounts for the pair. Events are joined with trading pair data to apply decimal corrections by dividing raw amounts by 10 raised to the token's decimal precision.
- **Key fields**: `block_timestamp`, `reserve0_amount` and `reserve1_amount` (decimal-corrected), `account_address` (pair contract)

### Component C: Daily asset flow calculation
- **Purpose**: Determines net daily changes in liquidity for each token in each pair
- **Logic**: Reserve data is aggregated to daily level by taking the last reserve value for each pair on each day using a window function. Daily net flows are calculated by subtracting the previous day's reserves from the current day's reserves using a lag function. For the first day a pair appears, the full reserve amount is treated as the net flow.
- **Key fields**: Daily `token0_amount` and `token1_amount` representing net inflows/outflows

### Component D: USD conversion and aggregation
- **Purpose**: Converts token amounts to USD values and calculates total net deposits
- **Logic**: Daily token flows are joined with end-of-day price feeds to convert amounts to USD. For each pair and day, the USD value is calculated as: (token0 flow × token0 price) + (token1 flow × token1 price). Missing prices default to zero. Values are summed across all pairs and days to produce total net deposits.
- **Key fields**: `net_deposits` in USD representing total daily value changes

### Final aggregation
- **Combining components**: All pair-level USD net deposits are summed by day to create protocol-wide net deposit totals
- **Currency conversion**: End-of-day token prices are used to ensure consistent daily valuation timing
- **Time aggregation**: Daily boundaries are used with day-level truncation of timestamps
- **Final calculation**: TVL equals the cumulative sum of net deposits over time, representing the total dollar value currently locked in all VerseDX liquidity pools

*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.

VerseVERSE

Total value locked

Total value locked

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