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METHODOLOGY.md

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Methodology

Overview

Overview of the protocol. Should be a couple of sentences in a single paragraph. What does the protocol do, what chain it is on and other relevant information.

Useful links

  • Protocol links
  • Developer/user docs
  • Contract addresses
  • Additional links: Deep dives, reviews and metrics

Usage Metrics

Active users, total unique users, daily transaction count and other usage metrics such as LP.

Financial metrics

Total Value Locked USD

Total Value Locked (TVL) = Sum of All Pool deposits in protocol

  • It can also include “staking” if the staking is critical to the function of the protocol and is not double counted, such as stability pools (liquity) or trading pairs (bancor)

Total Revenue USD

Total revenue=sum of all fees collected in protocol

  • this could be trading fees in AMMs or interest collected by lending

Supply-Side Revenue USD

Supply-Side Revenue = Total Revenue USD - Admin Fee USD Admin fees are fees taken by the protocol

Protocol Revenue USD

Protocol Revenue USD= Total Revenue USD-Supply-Side Revenue USD or Admin Fee USD

  • This is the fee going to the user.

Protocol Controlled Value USD

Protocol controlled value (PCV)=sum of assets in pools owned by protocol for buybacks

  • This excludes treasury balance and non protocol owned assets.

Pool-Level Metrics

Pool Total Value Locked USD

Pool Total Value Locked USD=total deposits in specific pool or pair

  • In AMMs this includes both sides of pool

Reward Tokens

Reward tokens= Total reward tokens set to be emitted

APR= (Total reward tokens emitted/Pool TVL USD) per year

  • Reward tokens are used to attract liquidity (often called liquidity mining tokens). These are not included in revenue.