# Active loans Methodology

## Overview

Active loans measures the value of user deposits that are lent out to borrowers. It tracks the portion of deposits that borrowers have to pay interest on, which means that it tends to correlate with the lending project's ability to generate revenue.

## Data sources

- Smart contract events and program instructions representing borrow, repay, and interest accrual activity
- Token price feeds for USD valuation
- Asset metadata for decimal normalization

## Common calculation approaches

### Debt token balance observation
`Mint` and `Burn` events are emitted by debt-bearing token contracts to represent borrowing and repayment activity. Outstanding debt positions are observed from Aave V3 contracts to maintain a running total of active loans.

### Interest accrual and index factoring
Total borrow amounts are updated through `AccrueInterest` events and state data. In protocols such as Compound, interest indices are factored into scaled principal balances to establish the current value of outstanding loans including accrued interest.

### Instruction-based activity analysis
On Solana, borrow and repayment activity is retrieved from program instructions. For instance, `BorrowObligationLiquidity` instructions from Kamino and `Operate` instructions from Jupiter Lend are utilized to establish real-time loan balances.

### Loan funding and principal analysis
For institutional lending platforms, active loans are recognized through specific funding events. Drawn loan amounts are obtained from `LoanFunded` events in projects like Maple Finance, ensuring only active debt is included in the metric.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

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

Value of loans currently outstanding to borrowers.

Active loans

Lending

Liquidity providers deposit funds into Curve and receive trading fees from traders (supply-side fees).

Curve is a non-custodial exchange protocol built originally on Ethereum. Curve was founded by Michael Egorov and launched in 2020.

CRV tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). 

LlamaLend

Active loans

Active loans

Chain breakdown