Lenders deposit funds into Compound and receive interest payments from borrowers (supply-side fees).

Compound is a non-custodial lending protocol built on Ethereum. Compound was founded by Robert Leshner & Geoffrey Hayes and launched in 2017.

 COMP tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). Compound’s investors include a16z, Paradigm, Polychain, etc.

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Compound

# Compound Active loans Methodology

## 1. Overview

The Compound active loans metric measures the total outstanding loan balances across all Compound lending markets, combining data from both Compound v2 and v3 protocols. This metric represents the total amount borrowed by users that remains unpaid, providing insight into lending protocol utilization and risk exposure. The calculation aggregates loan balances across all supported markets, converts them to USD, and maintains daily time series continuity through forward-filling.

## 2. Data sources

The calculation uses several key data sources:

- **Compound v2 Ethereum events**: Parsed `AccrueInterest` events from CEther, CErc20, and CErc20Delegator contracts that contain updated total borrow amounts
- **Compound v3 state data**: Pre-computed active loans state data containing total borrow balances per market
- **Market configuration data**: Compound v2 market definitions and v3 denomination configurations that map market contracts to underlying tokens
- **Token metadata**: Token symbols and identifiers for market contracts and underlying assets
- **End-of-day price feeds**: Token prices for USD conversion
- **Chain availability data**: Configuration for supported blockchain networks and time ranges

## 3. Step-by-step calculation

### Component A: Compound v2 active loans extraction

- **Purpose**: Extract active loan balances from Compound v2 markets on Ethereum
- **Logic**: The system monitors `AccrueInterest` events from three contract types: CEther (for ETH lending), CErc20 (for ERC20 token lending), and CErc20Delegator (for upgraded ERC20 markets). These events are emitted whenever interest is calculated and contain the updated `totalBorrows` field representing total outstanding loans for that market. The data is filtered to Ethereum blockchain only and tagged with lending business line identifiers. Multiple events per day are averaged to handle cases where interest accrues multiple times within the same day.
- **Key fields**: `totalBorrows` (outstanding loan amount), `address` (market contract), `block_timestamp` (event timing)

### Component B: Compound v3 active loans extraction  

- **Purpose**: Extract active loan balances from Compound v3 markets across supported chains
- **Logic**: This component uses pre-computed state data that tracks active loans across Compound v3 deployments. The system parses JSON-formatted `total_borrows` values from the state data and filters for records where both denomination (underlying token) and total borrows are not null. This ensures only valid, complete loan data is included. The data covers multiple blockchain networks where Compound v3 is deployed.
- **Key fields**: `total_borrows` (JSON-formatted loan amount), `denomination` (underlying token), `account_address` (market identifier)

### Component C: Market metadata enrichment

- **Purpose**: Add market context and token information to loan data
- **Logic**: The system joins loan data with market dimension tables that contain market configurations for both v2 and v3. For v2 markets, this includes the underlying token extracted from market configuration. For v3 markets, it includes denomination information. Both are joined with token metadata to obtain token symbols and human-readable market names. The joining process also standardizes the market address and token address relationships.
- **Key fields**: `token_address` (underlying asset), `account_name` (market symbol), `account_address` (market contract)

### Final aggregation

- **Combining components**: The v2 and v3 loan data are combined using a union operation after standardizing the schema. Both datasets are mapped to consistent business line categorization (Lending), market sector identification (lending), and version tagging. The combined dataset includes market contract addresses, underlying token addresses, and loan amounts.

- **Time and market aggregation**: Data is aggregated by day and token address, summing active loans across all markets for each underlying asset. This handles cases where multiple markets exist for the same token (e.g., different versions or configurations).

- **Gap filling**: Missing days in the time series are filled using forward-fill logic, carrying the last known active loan balance forward until new data is available. This ensures continuous daily metrics even when no interest accrual or state updates occur.

- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds and corrected for token decimal places. The conversion applies the appropriate decimal adjustment (typically dividing by 10^18 for most tokens) before multiplying by USD prices.

- **Final calculation**: The result is the total daily active loan balance in USD for each token across all Compound markets, with forward-filled values maintaining continuity and chain availability filters ensuring only supported blockchain data is included.

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

Value of loans currently outstanding to borrowers.

CompoundCOMP

Active loans

Active loans

Competitive landscape

Chain breakdown