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 Outstanding supply Methodology

## 1. Overview

Outstanding supply measures the circulating supply of GHO, the protocol's native decentralized stablecoin. This metric represents the net amount of GHO available in the open market by accounting for all issuance, redemption, and protocol-held balances. It serves as a proxy for the protocol's revenue-generation capacity, as the underlying collateral backing the GHO supply generates interest income for the Aave DAO.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events for the GHO asset, covering Ethereum
- **External data**: End-of-day price feeds for GHO

## 3. Step-by-step calculation

### Component A: GHO issuance and redemption tracking

- **Purpose**: Tracks the total quantity of GHO created and destroyed over time
- **Logic**: Mints are identified by parsing ERC-20 `Transfer` events where the sender is the null address. Redemptions are identified by parsing ERC-20 `Transfer` events where the recipient is either the null address or the dead address. These events are aggregated to determine the gross changes in total GHO supply.
- **Key fields**: `from_address`, `to_address`, `value`

### Component B: Protocol-held balance tracking

- **Purpose**: Identifies the portion of the GHO supply that is held within protocol-controlled vaults and not in circulation
- **Logic**: ERC-20 `Transfer` events to and from the GHO vault address are captured. Transfers to the vault are classified as protocol inflows, while transfers from the vault are classified as protocol outflows. A running balance is maintained by calculating net inflows to determine the total quantity of GHO held by the protocol at any given time.
- **Key fields**: `from_address`, `to_address`, `value`

### Component C: Outstanding supply calculation and USD conversion

- **Purpose**: Determines the final circulating supply in USD
- **Logic**: A running total of minted GHO minus redeemed GHO is calculated to establish the total supply. The protocol-held supply is then subtracted from this total supply to arrive at the outstanding supply. The resulting amounts are normalized by decimal precision and multiplied by end-of-day asset prices to convert the values to USD. Daily granularity is maintained using UTC day boundaries.
- **Key fields**: `amount`, `block_timestamp`, `token_address`

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

Circulating supply of stablecoins issued by the project.

AaveAAVE

Outstanding supply

Outstanding supply

Competitive landscape

Chain breakdown