Protocol-level asset selection for TVR

Determine a concrete methodology for conducting asset selection at the individual DeFi protocol level when computing Total Value Redeemable (TVR), specifying precisely which deposited cryptoassets should be included or excluded as redeemable for a single protocol so that TVR can be applied consistently beyond ecosystem-wide aggregation.

Background

Total Value Redeemable (TVR) has been proposed to address double counting in Total Value Locked (TVL) by summing the value of non-derivative tokens deposited in DeFi protocols. While TVR provides an ecosystem-level adjustment, practitioners and researchers still lack guidance on how to select assets at the level of an individual protocol when computing TVR, including clear inclusion/exclusion rules for specific token categories.

The paper highlights the need for standardized token categorization (e.g., derivative vs. non-derivative tokens) and points out that, despite aggregator toggles and categories, there is no published, detailed list of assets per category. Establishing protocol-level selection criteria would enable consistent application of TVR across heterogeneous protocols.