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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Lending

Fraxlend

# Fraxlend Total value locked Methodology

## 1. Overview

Fraxlend TVL represents the total value locked in the Fraxlend lending protocol, combining both deposited assets and outstanding loan amounts. This comprehensive TVL metric captures the full economic value within the protocol by summing the USD value of all tokens deposited in Fraxlend markets plus the value of active loans issued by the protocol. The calculation uses on-chain token transfer data to track deposits and withdrawals, combined with protocol state data to capture outstanding borrows.

## 2. Data sources

- **Ethereum event logs**: Parsed `AddPair` events from the Fraxlend `PairRegistry` contract to identify valid lending market addresses
- **Blockchain token transfers**: ERC20 `Transfer` events from Ethereum to track deposits and withdrawals from Fraxlend market contracts
- **End-of-day price feeds**: Daily USD price data for all tokens to convert native token amounts to dollar values
- **Protocol state data**: External Fraxlend protocol state snapshots containing current active borrow amounts by borrower
- **Token metadata**: ERC20 token decimal specifications for proper amount calculations

## 3. Step-by-step calculation

### Component A: Market identification
- **Purpose**: Identify all valid Fraxlend lending market contract addresses
- **Logic**: Extract all `pairAddress` values from `AddPair` events emitted by the Fraxlend `PairRegistry` contract on Ethereum. These addresses represent individual lending markets for different token pairs within the Fraxlend protocol.
- **Key fields**: `pairAddress` identifies each unique lending market contract

### Component B: Token balance tracking
- **Purpose**: Calculate running balances of all tokens held in Fraxlend markets
- **Logic**: Track all ERC20 token transfers into and out of identified Fraxlend market addresses. Calculate daily balance changes for each market-token combination, then compute cumulative running balances using window functions partitioned by market address and token. Forward-fill any missing days to ensure continuous time series data.
- **Key fields**: `account_address` (market contract), `token_address`, `balance` (running cumulative balance), `timestamp`

### Component C: Deposit TVL calculation
- **Purpose**: Convert token balances to USD value representing deposited TVL
- **Logic**: Join the running token balances with end-of-day price feeds to convert native token amounts to USD values. Filter to include only positive balances (actual deposits). Apply decimal corrections based on token specifications to ensure proper amount calculations.
- **Key fields**: `amount` (USD value), `token_address`, `timestamp`

### Component D: Active loans extraction
- **Purpose**: Capture outstanding loan amounts from protocol state
- **Logic**: Extract active borrow amounts from Fraxlend protocol state snapshots. Parse JSON-formatted results to get the `amount` field representing outstanding borrows. Use the hardcoded FRAX token address `0x853d955acef822db058eb8505911ed77f175b99e` as the loan token. Aggregate borrow amounts by borrower address and forward-fill missing days.
- **Key fields**: `active_loans` (borrow amount), `account_address` (borrower), `token_address` (FRAX)

### Component E: Loan USD conversion
- **Purpose**: Convert active loan amounts to USD values
- **Logic**: Apply USD conversion and decimal corrections to the active loan amounts using the same methodology as deposits. Join with daily price feeds for the FRAX token to get USD-denominated loan values.
- **Key fields**: `active_loans` (USD value), `timestamp`

### Final aggregation
- **Combining components**: Union the deposit TVL amounts and active loan amounts into a single dataset, treating both as positive contributions to total protocol value
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds with proper decimal adjustments based on token specifications
- **Time aggregation**: Data is aggregated daily with forward-filling applied to handle missing days in both deposits and loans
- **Final calculation**: Sum all deposit TVL and active loan amounts by day to produce the total Fraxlend TVL. Apply schema validation and gap-filling through the finalization macro to ensure data quality and completeness

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Fraxlend

Total value locked

Total value locked

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