# Jupiter Lend Active loans Methodology

## 1. Overview

Active loans is a measure of the total value of user deposits that are lent out to borrowers within Jupiter Lend. The portion of deposits on which borrowers pay interest is tracked, as this value correlates with the protocol's ability to generate revenue. The metric is calculated by accounting for the principal borrowed and the compound interest that accrues on outstanding balances over time.

## 2. Data sources

- **Blockchain events**: `Operate`, `UpdateRateDataV1`, and `UpdateRateDataV2` instructions from the `Liquidity` program, covering Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Loan operation tracking

- **Purpose**: Capture borrowing and lending activity to establish base balances
- **Logic**: `Operate` instructions are parsed from the `Liquidity` program on Solana. The `borrow_amount` and `supply_amount` fields are extracted to identify changes in debt and liquidity. Each operation is associated with a specific asset via the mint account.

### Component B: Interest rate curve configuration

- **Purpose**: Maintain the parameters required to calculate interest accrual
- **Logic**: Interest rate parameters are maintained by parsing `UpdateRateDataV1` and `UpdateRateDataV2` instructions. These instructions provide the necessary configuration for the interest rate curves, including utilization kinks and the corresponding interest rates at zero, kink, and maximum utilization levels. These parameters are joined to the loan operations based on the most recent configuration update.

### Component C: Interest accrual and balance calculation

- **Purpose**: Account for the growth of debt balances between on-chain operations
- **Logic**: Running borrow and supply balances are calculated chronologically for each asset. For the time elapsed between consecutive operations, the utilization rate is determined by dividing the borrow balance by the supply balance. Compound interest is then calculated and added to the active loan balance based on the applicable interest rate curve and the time delta.

### Component D: USD conversion and daily aggregation

- **Purpose**: Normalize asset balances to USD for standardized reporting
- **Logic**: The final active loan balance for each asset is captured at the end of each day. Amounts are normalized by asset decimal precision and multiplied by end-of-day price feeds. The resulting USD values are aggregated to represent the total active loans for Jupiter Lend.

*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.

Jupiter Lend

Active loans

Active loans

Chain breakdown