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Lending

Dolomite

# Dolomite Active loans Methodology

## 1. Overview

Active loans represents the total outstanding borrowed amount across all Dolomite lending markets, measured in USD. This metric tracks debt positions held by borrowers in the Dolomite protocol, which operates as a decentralized margin trading and lending platform. The calculation reconstructs daily loan balances from blockchain events, applies interest accrual through protocol indices, and converts to USD using multiple pricing sources.

## 2. Data sources

- **Dolomite smart contract events**: Parsed event logs from Dolomite protocol contracts on Arbitrum, Base, Ink, Berachain, and Ethereum blockchains
- **Balance update events**: `LogTrade`, `LogDeposit`, `LogWithdraw`, `LogTransfer`, `LogBuy`, `LogSell`, `LogLiquidate`, and `LogVaporize` events that modify account balances
- **Interest rate events**: `LogIndexUpdate` events tracking borrow and supply interest indices for each market
- **Market creation events**: `LogAddMarket` events establishing new lending markets and their token associations
- **Dolomite oracle data**: Protocol-specific market price feeds from the Dolomite states system
- **Standard price feeds**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token symbols, addresses, and decimal specifications for normalization

## 3. Step-by-step calculation

### Component A: Balance change extraction
- **Purpose**: Captures all balance-modifying events across Dolomite lending markets
- **Logic**: Extracts events from multiple Dolomite smart contracts across five blockchains. Each event contains account owner, account number, market ID, par sign (positive/negative balance), and par amount (protocol internal amount). Creates unique order IDs using block number and log index for precise event sequencing. Tracks state intervals by identifying the next balance update for each account-market combination.
- **Key fields**: `account_owner`, `account_number`, `market_id`, `par_sign`, `par_amount`, `order_id`

### Component B: Loan identification
- **Purpose**: Filters balance updates to identify active borrowing positions
- **Logic**: Selects balance updates where `par_sign` is false (indicating negative balance/debt) and `par_amount` is greater than zero. These represent outstanding loan amounts in the protocol's internal accounting system. Excludes positive balances which represent supplied/deposited assets.
- **Key fields**: Filtered `par_sign` (false), `par_amount` (>0)

### Component C: Daily snapshot creation
- **Purpose**: Determines which loan balances were active at the end of each day
- **Logic**: Uses market price data block numbers as the daily time spine. For each day, identifies loan positions that were active at the end-of-day block by finding balance updates where the daily cutoff order ID falls between the update's order ID and the next update's order ID. This reconstructs point-in-time loan balances from event-based data.
- **Key fields**: `timestamp`, `order_id`, `next_order_id`

### Component D: Interest accrual application
- **Purpose**: Converts protocol internal amounts to real borrowed amounts including accrued interest
- **Logic**: Applies the borrow index to convert par amounts (fixed protocol amounts) to real amounts that include accumulated interest. Uses the last `LogIndexUpdate` event for each market on each day. Calculation: `par_amount × (borrow_index ÷ 1e18)`. The borrow index starts at 1e18 and increases over time as interest compounds.
- **Key fields**: `borrow_index`, `par_amount`, calculated `borrow_amount`

### Component E: Token normalization
- **Purpose**: Standardizes amounts across different token decimal specifications
- **Logic**: Joins with market dimension data derived from `LogAddMarket` events to obtain token addresses, symbols, and decimal places. Applies decimal correction by dividing amounts by 10 raised to the token's decimal count. Aggregates multiple account positions within the same market to get total market-level loan amounts.
- **Key fields**: `token_address`, `token_decimals`, `token_symbol`

### Component F: Time series completion
- **Purpose**: Ensures continuous daily data without gaps
- **Logic**: Applies forward-filling logic to propagate loan balances across days where no balance changes occurred. This maintains accurate outstanding loan amounts between transaction days since loans persist until repaid or liquidated.
- **Key fields**: Continuous `timestamp` series

### Final aggregation
- **Combining components**: Sums borrow amounts across all accounts within each market, then aggregates by day, chain, product, version, market, and token to produce market-level totals
- **Currency conversion**: Converts token amounts to USD using standard end-of-day price feeds as the primary source. When standard prices are unavailable, falls back to Dolomite's internal market price oracle data, applying the formula: `market_price ÷ 10^(36 - token_decimals)` to normalize Dolomite's internal price format
- **Time aggregation**: Maintains daily granularity with end-of-day snapshots representing the total outstanding loan amounts at market close
- **Final calculation**: The final active loans metric represents the sum of all outstanding borrowed amounts across all Dolomite markets, converted to USD and aggregated by the specified dimensions (chain, market, token)

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

Value of loans currently outstanding to borrowers.

DolomiteDOLO

Active loans

Active loans

Competitive landscape

Chain breakdown