Lenders deposit funds into Gearbox and receive interest payments from borrowers.

Gearbox is a non-custodial lending protocol built on Ethereum. Gearbox was founded by Mikhail Lazarev and launched in 2021.

GEAR tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

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Gearbox

# Gearbox Active loans Methodology

## 1. Overview

The value of user deposits lent out to borrowers is measured by the Active loans metric. The portion of deposits that borrowers must pay interest on is tracked, which correlates with the lending project's ability to generate revenue. The outstanding principal across Gearbox V1 and Gearbox V3 pools is monitored, reflecting the portion of deposited assets that actively generate interest revenue. By analyzing active loans, the utilization and revenue-generating capacity of the protocol's credit pools are assessed.

## 2. Data sources

- **Blockchain events**: State reads of outstanding borrowed principal from pool contracts on Ethereum and Plasma, and `Borrow` and `Repay` events from `PoolV3` contracts combined with ERC-20 asset transfers on Monad, covering Ethereum, Monad, and Plasma
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Principal tracking for Ethereum and Plasma

- **Purpose**: Capture outstanding borrowed principal for pools on Ethereum and Plasma
- **Logic**: Daily state reads of the total borrowed amount are extracted for each pool. These values are utilized to represent the outstanding principal excluding accrued interest.
- **Key fields**: `pool_address` (pool identification), `total_borrowed` (outstanding principal)

### Component B: Principal reconstruction for Monad

- **Purpose**: Reconstruct daily outstanding borrowed principal for Monad pools
- **Logic**: Due to limited historical state availability on Monad, pool balances are reconstructed from transactional data. `Borrow` events from `PoolV3` contracts are parsed to capture increases in borrowed principal. `Repay` events from `PoolV3` contracts are parsed and matched with ERC-20 asset transfers to identify repayments and capture decreases in borrowed principal. A running sum of these principal changes is calculated daily per pool to determine the total outstanding borrowed principal.
- **Key fields**: `pool_address` (pool identification), `amount` (borrowed or repaid principal)

### Component C: Decimal normalization and product mapping

- **Purpose**: Normalize raw asset amounts and map pools to their respective product versions
- **Logic**: Raw principal amounts are normalized by the decimal precision of each pool's underlying denomination asset. Pools are mapped to their respective product versions, where pools designated as version V1 are mapped to Gearbox V1, and pools designated as version V3 (including versions V3.0 and V3.1) are mapped to Gearbox V3.
- **Key fields**: `token_address` (asset identification), `version` (pool version), `product_id` (product mapping)

### Component D: Temporal alignment and USD conversion

- **Purpose**: Fill missing daily records and convert normalized values to USD
- **Logic**: Missing daily records for active pools are filled forward to ensure continuous daily coverage. Normalized outstanding principal amounts are multiplied by end-of-day asset prices to calculate the active loan value in USD. Daily values are aggregated by chain, product, and asset using UTC day boundaries.
- **Key fields**: `timestamp` (timing), `active_loans` (final metric value)

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

Value of loans currently outstanding to borrowers.

GearboxGEAR

Active loans

Active loans

Competitive landscape

Chain breakdown