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

Fraxlend is a non-custodial lending protocol built on Ethereum. Fraxlend is part of Frax Finance and was launched in 2022.

FRAX tokenholders own and govern the FRAX Finance protocol. Fraxlend is a part of Frax Finance. They currently do not take a cut of the total interest paid by borrowers (revenue).

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Fraxlend

# Fraxlend Active loans Methodology

## 1. Overview

The Fraxlend active loans metric measures the total outstanding loan amounts across all borrowers on the Fraxlend protocol, denominated in USD. This metric tracks the current debt positions of users who have borrowed FRAX tokens through the protocol's lending markets. The calculation aggregates individual borrower positions from protocol state data and maintains a continuous daily time series to monitor lending activity and outstanding debt over time.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Fraxlend protocol state calls**: Real-time borrowing position data tracking outstanding loan amounts for individual accounts
- **Token metadata**: FRAX token decimal configuration for proper amount normalization
- **End-of-day price feeds**: Daily closing prices for USD conversion of FRAX token amounts
- **Chain availability configuration**: Protocol deployment and operational status data across different blockchain networks

## 3. Step-by-step calculation

### Component A: Active loan extraction
- **Purpose**: Extract current outstanding loan amounts from Fraxlend protocol state
- **Logic**: The system retrieves borrowing position data from Fraxlend protocol state calls that track individual account debt positions. Each state call contains JSON-formatted results with loan amount information. The process extracts the `amount` field from these JSON results, which represents the outstanding loan balance for each borrower. Only records with valid, non-null loan amounts are retained to ensure data quality. Each record is classified with lending market sector and business segment identifiers, and the token address is set to the FRAX token address `0x853d955acef822db058eb8505911ed77f175b99e`.
- **Key fields**: `timestamp` for daily tracking, `chain` for blockchain network identification, `account_address` for individual borrower identification, and `amount` from JSON extraction representing loan balance

### Component B: Position aggregation and validation
- **Purpose**: Sum loan amounts by borrower and ensure complete daily coverage
- **Logic**: Individual loan amounts are aggregated by timestamp, chain, market identifiers, and account address to handle any potential duplicate records from the state calls. This creates a single daily loan balance per borrower per chain. To ensure continuous daily time series, the system applies forward-filling logic that extends the most recent loan amount forward for any missing dates until a new state update occurs. This maintains accurate outstanding debt tracking even when no new borrowing activity occurs on specific days.
- **Key fields**: Aggregated `active_loans` amount per borrower, with consistent dimensional keys for time and account identification

### Component C: Currency conversion and standardization
- **Purpose**: Convert FRAX token amounts to USD and normalize decimal precision
- **Logic**: Outstanding loan amounts are converted from FRAX token units to USD using end-of-day price feeds that provide daily closing prices. The conversion process also corrects for the FRAX token's decimal precision to ensure amounts are properly normalized to standard units. This standardization enables consistent reporting and comparison across different tokens and time periods.
- **Key fields**: USD-denominated `active_loans` amounts with corrected decimal precision

### Final aggregation
- **Combining components**: Individual borrower loan amounts are maintained separately to preserve account-level detail while enabling protocol-level aggregation
- **Currency conversion**: FRAX token amounts are converted to USD using end-of-day closing prices with proper decimal adjustment for the 18-decimal FRAX token
- **Time aggregation**: Daily boundaries are maintained with forward-filling to ensure continuous time series coverage for each borrower position
- **Final calculation**: The metric represents the sum of all individual outstanding loan balances in USD, tracking total debt across all active Fraxlend borrowers. Chain availability filtering ensures metrics are only calculated for supported blockchain networks and operational time periods.

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

Value of loans currently outstanding to borrowers.

Fraxlend

Active loans

Active loans

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