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.

governance

github

twitter

discord

etherscan

website

Lending

Aave

Aave | Data breakdown

# Aave Active loans Methodology

## 1. Overview

Active loans is a metric that represents the value of user deposits that are lent out to borrowers. The portion of deposits that borrowers have to pay interest on is tracked, which correlates with the lending project's ability to generate revenue. This metric is calculated across multiple versions of the protocol, including Aave V2, Aave V3, and Aave V4, as well as specialized assets like Aave GHO (Ethereum). The total outstanding debt is aggregated across variable and stable interest rate borrow positions to represent the total active credit extended by the protocol.

## 2. Data sources

- **Blockchain events**: `Mint` and `Burn` events from `VToken` and `SToken` contracts, `Borrow` and `Repay` events from `BorrowLogic` contracts, `DiscountPercentUpdated` events from `GhoVToken` contracts, and `Draw`, `Restore`, and `UpdateAsset` events from Hub contracts (such as `CoreHub`, `PlusHub`, `PrimeHub`, `GlobalDollarHub`, `CashHub`, and `EquitiesHub`), covering Ethereum, Avalanche, Polygon, Arbitrum, and 12 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Aave V2 and Aave V3 variable debt tracking

- **Purpose**: Track outstanding variable rate debt for Aave V2 and Aave V3.
- **Logic**: Variable debt changes are identified by parsing `Mint` and `Burn` events from `VToken` contracts. Each mint (borrow) and burn (repay) amount is scaled by dividing the raw amount by the variable borrow index at the time of the event. The cumulative sum of these scaled debt deltas is calculated per asset and market. This cumulative scaled debt is then multiplied by the latest variable borrow index to compute the total outstanding variable debt, which incorporates accrued interest.
- **Key fields**: `amount`, `index_value`, `vtoken_address`

### Component B: Aave V2 and Aave V3 stable debt tracking

- **Purpose**: Track outstanding stable rate debt for Aave V2 and Aave V3.
- **Logic**: Stable debt changes are identified by parsing `Mint` and `Burn` events from `SToken` contracts. The total outstanding stable debt is tracked directly using the total supply field emitted in these events. The latest total supply value per asset and market is carried forward to represent the active stable loans.
- **Key fields**: `total_supply`, `stoken_address`

### Component C: Aave V3 Aptos active loans

- **Purpose**: Calculate active loans for Aave V3 on Aptos.
- **Logic**: Active loans on Aptos are identified by parsing `Borrow` and `Repay` events from `BorrowLogic` contracts. Borrow amounts are treated as positive flows, and repay amounts are treated as negative flows. These flows are aggregated daily and accumulated over time. The cumulative sum is floored at zero to prevent negative active loan balances resulting from interest repayments exceeding the initial principal before enough new borrows accumulate.
- **Key fields**: `amount`, `pool_address`, `reserve_address`

### Component D: Aave GHO (Ethereum) discount-corrected debt tracking

- **Purpose**: Calculate outstanding debt for Aave GHO (Ethereum) with interest discount corrections.
- **Logic**: Outstanding debt for Aave GHO (Ethereum) is identified by parsing `Mint` and `Burn` events from `VToken` contracts for the GHO asset alongside `DiscountPercentUpdated` events from `GhoVToken` contracts. Because GHO interest discounts (for `stkAAVE` holders) are applied off-payload during token burns, the outstanding debt is overstated by standard debt reconstruction. The discount-corrected scaled debt delta is calculated by subtracting the discounted interest from the standard scaled delta, using a gross-up factor of `discount_percent / (1 - discount_percent)` applied to the balance increase, scaled by the variable borrow index. This correction is applied up to the block where the discount mechanism was upgraded. The cumulative corrected scaled debt is then multiplied by the variable borrow index to determine the true outstanding GHO debt.
- **Key fields**: `amount`, `balance_increase`, `discount_percent`, `variable_borrow_index`

### Component E: Aave V4 active loans

- **Purpose**: Calculate active loans for Aave V4.
- **Logic**: Active loans for Aave V4 are identified by parsing `Draw` (borrow) and `Restore` (repay) events from Hub contracts. Each draw and restore event is joined with the nearest prior `UpdateAsset` event in the same transaction to extract the drawn index. The raw flow amounts are scaled to shares by dividing the amount by the drawn index. The cumulative sum of these scaled shares is calculated per asset, pool, and hub. The cumulative shares are then multiplied by the latest drawn index to calculate the total outstanding debt, capturing interest accrual over time.
- **Key fields**: `amount`, `drawn_index`, `hub_address`, `spoke_reserve_id`

### Component F: USD conversion and aggregation

- **Purpose**: Normalize active loan values to USD and aggregate them.
- **Logic**: The active loan balances from all components are combined. The raw asset amounts are normalized by their respective decimal precision. These normalized amounts are then multiplied by end-of-day asset prices to convert the values to USD. The daily active loan balances are forward-filled for days with no activity and aggregated to produce the final metric.
- **Key fields**: `active_loans`, `price_usd`, `timestamp`

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

Value of loans currently outstanding to borrowers.

AaveAAVE

Active loans

Active loans

Competitive landscape

Chain breakdown