# Fluid Active loans Methodology

## 1. Overview

Active loans measures the value of user deposits that are lent out to borrowers. It tracks the portion of deposits that borrowers have to pay interest on, which means that it tends to correlate with the lending project's ability to generate revenue. For Fluid, this metric captures outstanding debt across Fluid on Ethereum and various Layer 2 networks, Venus Flux on BNB Chain, and Jupiter Lend on Solana.

## 2. Data sources

- **Blockchain events**: State data extracted via `liquidity_resolver` calls covering Ethereum, Base, BSC, Arbitrum, and 2 other chains, and `Operate`, `UpdateTokenConfig`, `UpdateRateDataV1`, and `UpdateRateDataV2` instructions from the `Liquidity` program on Solana
- **External data**: End-of-day price feeds for borrowed assets

## 3. Step-by-step calculation

### Component A: Fluid and Venus Flux balance extraction

- **Purpose**: Retrieves total outstanding debt for Fluid and Venus Flux markets.
- **Logic**: Outstanding debt is extracted directly from `liquidity_resolver` state data. The `total_borrow` field is parsed from the output of token data calls. On BNB Chain, these balances are attributed to Venus Flux, while on all other chains, they are attributed to Fluid.
- **Key fields**: `total_borrow` (debt balance), `token_address` (asset identification), `chain` (network identification).

### Component B: Jupiter Lend borrow and supply tracking

- **Purpose**: Identifies the baseline borrow and supply activity for Jupiter Lend on Solana.
- **Logic**: `Operate` instructions from the `Liquidity` program are parsed to identify changes in borrow and supply amounts. Running balances are maintained per token by aggregating these amounts chronologically.
- **Key fields**: `borrow_amount`, `supply_amount`, `mint` (asset identification).

### Component C: Jupiter Lend interest rate configuration

- **Purpose**: Determines the interest rate parameters used for loan balance adjustments.
- **Logic**: Interest rate curve parameters are retrieved from `UpdateRateDataV1` and `UpdateRateDataV2` instructions from the `Liquidity` program. These parameters include kinks, rates at utilization zero, rates at kinks, and maximum rates. Protocol-specific fee rates are extracted from `UpdateTokenConfig` instructions.
- **Key fields**: `kink`, `rate_at_utilization_zero`, `rate_at_utilization_kink`, `rate_at_utilization_max`, `fee`.

### Component D: Jupiter Lend compound interest accrual

- **Purpose**: Calculates the continuous growth of loan balances due to interest.
- **Logic**: Utilization is calculated as the ratio of borrow balances to supply balances before each operation. The applicable interest rate (in basis points) is determined by applying current utilization to the active rate curve (V1 or V2). Compound interest is accrued for the period between instructions using the formula `borrow_balance * (pow(1 + (rate_bps / 10000 / 365), days_since_prev) - 1)`. Loan balances are updated by adding this accrued interest to the previous balance and any new borrow activity.
- **Key fields**: `rate_bps` (calculated interest rate), `days_since_prev` (time interval), `active_loan_balance` (running total).

### Component E: USD conversion and final aggregation

- **Purpose**: Normalizes all loan balances to a common currency and timeframe.
- **Logic**: Outstanding loan balances from all products are normalized by the decimal precision of the respective assets. These normalized amounts are multiplied by end-of-day price feeds to determine the USD value. Missing values are filled forward to maintain a continuous daily series. Daily values are aggregated based on UTC day boundaries.
- **Key fields**: `amount` (raw loan balance), `price_usd` (asset price), `timestamp` (UTC date).

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

Value of loans currently outstanding to borrowers.

Active loans

Lending

Fluid acts as a lending, vault, and DEX platform for seamless DeFi interaction.

Fluid is a non-custodial lending, vaults, and DEX protocol built by Instadapp. Instadapp was founded by Samyak Jain & Sowmay Jain and launched in 2018.

FLUID tokenholders own and govern the protocol. They currently earn a cut of the fees generated through Fluid lending, vault and DEX services. Instadapp's investors include Coinbase Ventures, Pantera Capital, Robot Ventures, etc.

Fluid

Active loans

Active loans

Chain breakdown