Introduction

The TVL value of any DEFI protocol is highly dependent on the assets locked in it, Thorchain also follows this rule. But this value changes a lot with changes in the price of the assets in it.

In this analysis, we want to know How TVL will change over time if we keep the price of the assets in the Thorchain constant.

For example, if we measure the total price of existing assets based on their current price, what will TVL change over time?

And we shows how price changes affect TVL.

Approach

First of all we calculate TVL with assets and RUNE current price and compare it with TVL with price Changes in assets and rune over time.

Also Shows Price changes in big Assets like RUNE , since RUNE has a 50% of volume on each pool and BTC Price cause BTC has a largest liquidity pool on Thorchain, then compare price changes on these assets and TVL of Thorchain with price influence and without price influence.

And for final part we shows TVL with no price influence for each pool.

Methods

We can calculate TVL with daily_pool_stats table , just need to use this formula (asset_liquidity * asset_price_usd + rune_liquidity * rune_price_usd), so when we use current price of assets and RUNE we can calculate TVL without price changes effect over time.

By setting day on max we can reach last prices of each assets and RUNE on each pool. or just set date in where clause to last date.

Then we can join this query with regular TVL calculation query. and set pool_name on each query equal.

now time to replace current asset_price_usd and Rune_price_usd with regular prices in each pool since we joined them on pool_name,so we can calculate TVL without price influence for each pool over time.

Now we have TVL with price influence and without price influence , Let's Compare them .

Chart below Shows TVL with price influence and without price influence.

as you can see TVL without price influence has Stable moving over time .

In the following Charts, we examine how much this change depends on the changes in the RUNE and BTC Prices.

Conclusion

TVL with price influece is highly correlated with RUNE price, while TVL without price influence has a more stable situation and growth in stable trend over time.

Changes in TVL with price influence also correlated with BTC price since BTC has a largest liquidity pool on thorchain. Chart below shows correlation between both of them.

we can see how TVL without changes in price of assets and RUNE are growing for each pool, in a stable trend .

In general, TVL shows less value on most days considering current assets and rune prices, Because the prices of BTC, RUNE and ETH assets, which have the largest volume of thorchain pools, have fallen in price and The price and value of these assets have decreased.

By calculating TVL without price influence, we observed that the value of TVL has changed slightly over time and most of it has been upward.