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

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Aave

Aave | Data breakdown

# Aave Treasury Methodology

## 1. Overview

Aave Treasury is measured as the total USD value of onchain assets held within Aave DAO-controlled addresses. These financial resources are utilized to fund protocol operations, incentivize ecosystem growth, and compensate contributors. Asset holdings are tracked across multiple protocol versions, including Aave V2 and Aave V3, and include native assets, stablecoins like GHO, and various interest-bearing tokens.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers and native asset transfers associated with designated treasury and collector addresses, covering Ethereum, Arbitrum, Avalanche, Polygon, and 10 other chains
- **External data**: End-of-day price feeds for all held assets and asset metadata

## 3. Step-by-step calculation

### Component A: Treasury asset flow extraction

- **Purpose**: Identify all incoming and outgoing asset movements for Aave treasury addresses
- **Logic**: Net daily flows are calculated by parsing ERC-20 token transfers and native asset transfers for specific account addresses across all supported chains. Value changes are captured for every transaction where a treasury address is identified as either the sender or the recipient.
- **Key fields**: `account_address` (treasury identification), `token_address` (asset identification), and `value` (transfer amount)

### Component B: Cumulative balance tracking and continuity

- **Purpose**: Determine the daily running balance for every asset held in the treasury
- **Logic**: Daily net flows are aggregated chronologically to calculate the total balance of each asset per address and chain. To ensure a continuous time series, balances are filled forward for all days where no transfer activity is recorded, maintaining the last known balance until a new flow occurs.
- **Key fields**: `timestamp` (daily granularity) and `balance` (calculated running total)

### Component C: USD valuation and aggregation

- **Purpose**: Normalize asset holdings to USD for unified reporting
- **Logic**: Asset balances are normalized by decimal precision and multiplied by end-of-day price feeds. The total treasury value is then calculated by summing the USD-denominated amounts across all tracked addresses, assets, and chains for each day.
- **Key fields**: `price_usd` (valuation) and `amount` (final USD value)

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

Total value of a project's onchain treasury, including its native token.

AaveAAVE

Treasury

Treasury

Competitive landscape

Chain breakdown