TVL

Overview

In the decentralized finance (DeFi) sector, the Total Value Locked (TVL) is not just a measure of assets held within protocols but also a critical tool for monitoring security. A sudden and significant drop in TVL can indicate potential malicious activities, such as hacks where large amounts of liquidity are drained in a short timeframe. Recognizing the importance of timely and accurate TVL tracking for security purposes, the TurtleShell SDK has developed a dedicated utility module.

Standardized Solidity Contract

The TVL utility module provides a standardized Solidity contract that developers can inherit. This contract incorporates generic methods specifically designed for real-time TVL tracking, enabling protocols to promptly detect and respond to unusual liquidity movements.

Utilities for Interacting with Common DeFi Protocols

To ensure comprehensive monitoring across various platforms, the module includes utilities tailored for interactions with popular DeFi platforms:

1. Uniswap/Curve Swaps: The module facilitates the tracking of balances during token exchanges on platforms like Uniswap and Curve. This ensures that any unusual liquidity shifts, which could be indicative of malicious activities, are promptly detected.

2. Aave Deposits/Withdrawals: Given the prominence of Aave as a lending and borrowing platform, the TVL utility module is equipped to closely monitor deposits and withdrawals. This aids in the early detection of any suspicious large-scale withdrawals.

Integration with TurtleShell

The TVL utility module is designed for seamless integration with the broader TurtleShell SDK. This ensures that DeFi protocols can efficiently incorporate real-time TVL tracking into their existing contracts, enhancing their security measures.

In essence, the TVL utility module of the TurtleShell SDK offers DeFi protocols a robust mechanism to monitor their liquidity in real-time, providing an added layer of security against potential malicious activities.