# Aave V3 Active loans Methodology

## 1. Overview

Active loans measures the total USD value of user deposits that are lent out to borrowers in Aave V3. The portion of deposited assets that borrowers pay interest on is tracked, which directly correlates with the protocol's capacity to generate interest revenue. Outstanding debt is calculated across variable-rate, stable-rate, and GHO-specific borrow positions to provide a comprehensive view of active credit. By monitoring these active borrow balances, the utilization and revenue-generating efficiency of the protocol's lending pools are evaluated.

## 2. Data sources

- **Blockchain events**: `Mint` and `Burn` events from `VToken` and `SToken` contracts, `DiscountPercentUpdated` events from `GhoVToken` contracts, `Borrow` and `Repay` events from `BorrowLogic` contracts, and `ReserveInitialized` events from `LendingPoolConfigurator` and `PoolTokenLogic` contracts, covering Ethereum, Arbitrum, Avalanche, Base, and 10 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Variable-rate debt tracking

- **Purpose**: Calculate outstanding variable-rate debt.
- **Logic**: `Mint` and `Burn` events from `VToken` contracts are parsed to capture changes in variable debt. For each event, the change in debt is scaled by dividing the amount by the variable borrow index. The scaled debt changes are cumulatively summed over time to determine the total scaled debt. This cumulative scaled debt is then multiplied by the latest variable borrow index to calculate the total outstanding variable-rate debt, which accounts for accrued interest. GHO variable debt is excluded from this step and handled separately.
- **Key fields**: `block_timestamp`, `amount`, `index_value` (variable borrow index), `vtoken_address`

### Component B: Stable-rate debt tracking

- **Purpose**: Calculate outstanding stable-rate debt.
- **Logic**: `Mint` and `Burn` events from `SToken` contracts are parsed to track stable-rate debt changes. The total supply of stable debt assets is aggregated directly from these events to represent the outstanding stable-rate debt.
- **Key fields**: `block_timestamp`, `total_supply`, `stoken_address`

### Component C: GHO debt tracking with discount correction

- **Purpose**: Calculate outstanding GHO debt on Ethereum V3, correcting for the `stkAAVE` interest discount.
- **Logic**: `Mint` and `Burn` events from `VToken` contracts for GHO are parsed. To correct for the interest discount, `DiscountPercentUpdated` events from `GhoVToken` contracts are joined to track the discount percentage applied to each user's position. The discounted interest burned by the contract is calculated and subtracted from the scaled debt changes. The corrected scaled debt is cumulatively summed per user and multiplied by the variable borrow index to determine the total outstanding GHO debt.
- **Key fields**: `block_timestamp`, `value`, `balance_increase`, `old_discount`, `new_discount`, `variable_borrow_index`

### Component D: Aptos debt tracking

- **Purpose**: Calculate outstanding debt for Aave V3 on Aptos.
- **Logic**: `Borrow` and `Repay` events from `BorrowLogic` contracts are parsed. Borrow amounts (positive) and repay amounts (negative) are combined and cumulatively summed. The cumulative sum is floored at zero to prevent negative balances resulting from interest repayments exceeding the initial principal before new borrows accumulate.
- **Key fields**: `block_timestamp`, `amount`, `reserve_address`

### Component E: USD conversion and aggregation

- **Purpose**: Normalize debt values to USD and aggregate them.
- **Logic**: The outstanding debt values from variable-rate, stable-rate, GHO, and Aptos components are combined. The raw asset amounts are normalized by decimal precision using asset metadata. The normalized amounts are multiplied by end-of-day asset prices to convert them to USD. The daily delta of active loans is calculated, and a forward-fill strategy is applied to ensure continuous daily coverage, with any remaining gaps filled with zeros.
- **Key fields**: `timestamp`, `active_loans`, `price_usd`, `decimals`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of loans currently outstanding to borrowers.

Active loans

Lending

Lenders deposit funds into Aave and receive interest payments from borrowers (supply-side fees).

Aave is a non-custodial lending protocol built on Ethereum and other adjacent blockchains. Aave was founded by Stani Kulechov and launched in 2017.

AAVE tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Aave’s investors include ParaFi Capital, Framework Ventures, Three Arrows Capital, etc.

Aave V3

Active loans

Active loans

Chain breakdown