Lenders deposit funds into BendDAO and receive interest payments from borrowers (supply-side fees). BendDAO has other business lines in addition, however this dashboard only tracks the BendDAO lending protocol.

BendDAO is a non-custodial NFT lending protocol built on Ethereum. BendDAO was founded by an anonymous team and launched in 2021.

BEND tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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BendDAO

# BendDAO Active loans Methodology

## 1. Overview

The BendDAO active loans metric measures the total outstanding debt across all lending markets on the BendDAO protocol at any given time. BendDAO is a lending protocol that allows users to borrow against NFT collateral. This metric captures the current amount of active loans by tracking debt token mint and burn events, applying BendDAO's interest accrual mechanism through liquidity indices, and maintaining a running total of outstanding debt positions.

## 2. Data sources

- **BendDAO debt token events**: Parsed `DebtToken_Mint_event` and `DebtToken_Burn_event` logs from BendDAO v1 contracts on Ethereum
- **Liquidity index data**: Index values embedded in the mint/burn events representing cumulative interest accrual (stored with 27 decimal places)
- **Market configuration**: Hardcoded mapping of debt token addresses to underlying token addresses for supported BendDAO markets
- **End-of-day price feeds**: Token price data for USD conversion
- **Token metadata**: Decimal place information for proper token amount scaling

The methodology currently covers two BendDAO markets: WETH (Wrapped Ethereum) and USDT (Tether USD) lending pools.

## 3. Step-by-step calculation

### Component A: Debt token supply tracking

- **Purpose**: Tracks all changes in debt token supply from mint and burn events
- **Logic**: Extracts `DebtToken_Mint_event` and `DebtToken_Burn_event` logs from BendDAO contracts on Ethereum. Mint events occur when users borrow funds and receive debt tokens representing their obligation. Burn events occur when users repay loans and debt tokens are destroyed. Each event contains an `index` value (scaled to 27 decimals) representing the cumulative interest factor, and an `amount` representing the debt token quantity. Burn amounts are converted to negative values to represent debt reduction.
- **Key fields**: `block_timestamp`, `btoken_address`, `index_value`, `amount`

### Component B: Liquidity index scaling

- **Purpose**: Applies BendDAO's interest accrual mechanism to scale debt amounts
- **Logic**: Uses BendDAO's scaling formula to normalize debt amounts: `scaled_amount = (amount + index_value/2) / index_value`. The division by 2 in the numerator provides rounding for precision. This scaling converts variable debt amounts to a standardized base that accounts for interest accrual over time. The liquidity index represents the cumulative interest earned by suppliers of each asset.
- **Key fields**: `amount` (scaled debt amount), `index_value` (liquidity index)

### Component C: Outstanding debt calculation

- **Purpose**: Calculates running totals of outstanding debt for each market
- **Logic**: Applies cumulative sum window function over scaled debt amounts, partitioned by chain, version, and debt token address, ordered by timestamp. This creates a running total that increases with borrows (mints) and decreases with repayments (burns). The result represents scaled outstanding debt at each point in time.
- **Key fields**: `amount` (cumulative scaled debt)

### Component D: Actual debt conversion

- **Purpose**: Converts scaled debt back to actual amounts using current interest rates
- **Logic**: Multiplies the scaled outstanding debt by the current liquidity index value to get the actual outstanding debt amount. This accounts for interest accrual since the original borrow. Maps debt token addresses to underlying token addresses using the market configuration to identify which token the debt represents.
- **Key fields**: `token_address` (underlying token), `amount` (actual outstanding debt)

### Final aggregation

- **Combining components**: Groups outstanding debt data by day, chain, and token address, then calculates the average outstanding amount within each day
- **Gap filling**: Applies forward-fill logic to ensure continuous daily data, carrying forward the last known value for days with no activity
- **Currency conversion**: Converts token amounts to USD using end-of-day price feeds and corrects for token decimal places
- **Time aggregation**: Aggregates to daily granularity using day-truncated timestamps
- **Final calculation**: The metric represents the average daily outstanding debt across all BendDAO lending markets, expressed in USD

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

Value of loans currently outstanding to borrowers.

BendDAOBEND

Active loans

Active loans

Competitive landscape