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.

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Aave

Aave | Data breakdown

# Aave Treasury (net) Methodology

## 1. Overview

Treasury (net) is measured as the total value of assets held in onchain treasury contracts, with the protocol’s native AAVE asset specifically excluded. This metric is used to assess the financial health, liquidity, and operational runway of the Aave DAO. Holdings from Aave V2 and Aave V3 deployments are included in the calculation to provide a comprehensive view of the protocol's non-native reserves.

## 2. Data sources

- **Blockchain events**: ERC-20 token transfers and native asset transfers for identified treasury and reserve factor accounts, covering Ethereum, Arbitrum, Avalanche, Polygon, and 10 other chains
- **External data**: End-of-day price feeds for all non-native assets and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Treasury account identification

- **Purpose**: To identify the specific onchain addresses controlled by the Aave DAO.
- **Logic**: A predefined list of account addresses is maintained for each supported chain. These addresses include the Aave Ecosystem Reserve, the Aave Collector contracts for Aave V2 and Aave V3, and various chain-specific treasury controllers.

### Component B: Daily net flow aggregation

- **Purpose**: To calculate the daily change in asset balances for the identified accounts.
- **Logic**: Daily net flows are derived from ERC-20 token transfers and native asset transfers involving the identified treasury addresses. Inbound transfers are treated as positive values and outbound transfers as negative values. All flows are aggregated by day, chain, and asset address to determine the net change in holdings.

### Component C: Cumulative balance tracking

- **Purpose**: To maintain a continuous record of treasury holdings over time.
- **Logic**: Daily net flows are summed chronologically to determine the running balance for each asset held within the treasury accounts. For days where no transfer events are recorded, a fill-forward mechanism is applied to carry the previous day’s balance forward, ensuring a continuous time series.

### Component D: Native asset exclusion

- **Purpose**: To isolate non-native treasury value as per the canonical metric definition.
- **Logic**: The protocol's native asset (AAVE) and its bridged versions are explicitly filtered out from the dataset. Specific contract addresses for AAVE across all supported chains are used to identify and remove these balances, ensuring the metric only includes stablecoins and other non-native assets.

### Component E: USD conversion and normalization

- **Purpose**: To value the identified holdings in a standardized currency.
- **Logic**: Asset balances are normalized by their respective decimal precision. These quantities are multiplied by end-of-day price feeds to calculate the USD value of each holding. The final Treasury (net) metric is generated by aggregating these USD values across all tracked chains and treasury accounts.

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

Total value of a project's treasury excluding its native token.

AaveAAVE

Treasury (net)

Treasury (net)

Competitive landscape

Chain breakdown