# Fathom Lending Active loans Methodology

## 1. Overview

Active loans is defined as the total value of outstanding debt within Fathom Lending. The portion of deposited assets that has been lent to borrowers and is currently accruing interest is tracked by this metric. The protocol's utilization and its capacity to generate revenue from interest-bearing positions are reflected by these cumulative balances.

## 2. Data sources

- **Blockchain events**: `ReserveInitialized` events from `LendingPoolConfigurator` contracts, and `Mint` and `Burn` events from `VToken` contracts, covering XDC
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Market identification and mapping

- **Purpose**: Establishes the link between underlying assets and the contracts used to track debt.
- **Logic**: `ReserveInitialized` events from `LendingPoolConfigurator` contracts are parsed to identify all active lending markets. Underlying asset addresses are mapped to their corresponding variable debt token (`vToken`) contract addresses, which serve as the primary source for tracking loan balances.

### Component B: Loan activity extraction

- **Purpose**: Captures all changes to outstanding variable debt.
- **Logic**: `Mint` and `Burn` events are extracted from `VToken` contracts. New variable rate borrows are identified through `Mint` events, while repayments and debt liquidations are identified through `Burn` events. Each event is associated with a specific underlying asset and a timestamp.

### Component C: Cumulative balance calculation

- **Purpose**: Determines the total amount of debt outstanding at any given time.
- **Logic**: Net daily changes in loan volumes are calculated by subtracting the value of `Burn` events from the value of `Mint` events for each asset. A running total is then calculated to determine the cumulative outstanding balance. For days where no transactions occur, the previous day's balance is filled forward to maintain a continuous record of active loans.

### Component D: Normalization and USD conversion

- **Purpose**: Converts raw on-chain debt balances into a standardized USD value.
- **Logic**: Outstanding balances are normalized by decimal precision based on asset metadata. These normalized quantities are then multiplied by end-of-day price feeds. The final values are aggregated to provide the total value of active loans per day and per chain.

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

Value of loans currently outstanding to borrowers.

Active loans

Lending