# Chainflip Lending Active loans Methodology

## 1. Overview

Active loans measures the total value of user deposits that are lent out to borrowers within Chainflip Lending. The portion of deposits that borrowers actively pay interest on is tracked, which directly correlates with the protocol's ability to generate revenue. Only user-initiated loans are included in this metric, while boost-related loans are excluded. Outstanding loan balances are tracked historically, normalized to USD, and aggregated daily.

## 2. Data sources

- **Blockchain events**: `LoanCreated`, `LoanUpdated`, `InterestTaken`, `LoanRepaid`, `LoanSettled`, and `CollateralAdded` events from `lendingPools` modules, covering Chainflip Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Loan event extraction and classification

- **Purpose**: To extract and classify loan-related events from the Chainflip Chain.
- **Logic**: `LoanCreated`, `LoanUpdated`, `InterestTaken`, `LoanRepaid`, `LoanSettled`, and `CollateralAdded` events are parsed from the `lendingPools` module. For each event, the loan identifier, asset, and borrower address are extracted. Loans are classified by type, distinguishing between user-initiated loans and boost-related loans based on the presence of boost parameters in the event data. Principal changes are calculated for each event: initial principal is captured from `LoanCreated` events, draws are captured from `LoanUpdated` events, repayments are captured as negative values from `LoanRepaid` events, and accrued interest is captured from `InterestTaken` events.
- **Key fields**: `loan_id`, `amount` (representing the raw principal delta), `asset` (representing the asset address), and `loan_type`

### Component B: Active loan balance tracking

- **Purpose**: To calculate the running outstanding balance of active user loans.
- **Logic**: Loan events are filtered to include only user-initiated loans, excluding boost-related loans. The net principal changes (draws, repayments, and interest adjustments) are aggregated by asset and day. A cumulative sum of these daily net changes is calculated over time to determine the running outstanding balance of active loans for each asset. For days without any loan activity, the last known outstanding balance is carried forward to ensure continuous daily tracking.
- **Key fields**: `timestamp`, `token_address`, and `active_loans` (representing the running outstanding balance in raw asset units)

### Component C: USD conversion and final aggregation

- **Purpose**: To normalize active loan balances to USD and aggregate the final metric.
- **Logic**: The running outstanding balances for each asset are normalized by decimal precision using asset metadata. The normalized balances are then multiplied by end-of-day asset prices to convert the values to USD. The final metric is aggregated daily with UTC day boundaries, and chain availability filters are applied to ensure data completeness.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, and `active_loans` (denominated in USD)

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

Value of loans currently outstanding to borrowers.

Active loans

Lending

Chainflip operates a decentralized network of 150 validators that collectively control multi-chain vaults using threshold signature schemes (TSS). The protocol uses a Just-In-Time (JIT) AMM where liquidity providers compete to fill swap orders at the moment of execution, enabling capital-efficient cross-chain swaps. A portion of each swap fee is used to buy and burn FLIP tokens.

Chainflip is a decentralized cross-chain swap protocol that enables native asset exchanges across blockchains including Bitcoin, Ethereum, and Solana without wrapped tokens or traditional bridges. It was launched in 2023 by Chainflip Labs and uses a JIT AMM model combined with MPC-based vault technology to provide competitive pricing on cross-chain trades.

Chainflip is governed by its validator set and FLIP tokenholders. Validators stake FLIP to participate in the network and earn fees from swaps. The protocol is developed and maintained by Chainflip Labs.

Chainflip Lending

Active loans

Active loans

Chain breakdown