Overcollateralized borrowers deposit funds into Liquity and receive LUSD stablecoin.

Liquity is a non-custodial stablecoin protocol built on Ethereum. Liquity was founded by Robert Lauko & Rick Pardoe and launched in 2020.

LQTY tokenholders own & govern the protocol. They currently take all of the total borrow & redemption fees paid by borrowers (revenue). Liquity’s investors include Lemniscap, Polychain, Alameda Research, etc.

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Liquity

# Liquity Circulating asset market cap Methodology

## 1. Overview

The Liquity asset market cap circulating metric represents the total market value of circulating LUSD stablecoins in USD. For Liquity, this metric is equivalent to the outstanding supply of LUSD tokens multiplied by the current USD price. The calculation tracks all LUSD token mints and redemptions on Ethereum to maintain an accurate running count of circulating tokens, then converts this supply to USD value using end-of-day price feeds.

## 2. Data sources

The calculation relies on several key data sources:
- **Ethereum token transfer events**: ERC-20 transfer events for the LUSD token contract on Ethereum, specifically filtering for mint and redemption transactions
- **End-of-day token price feeds**: USD price data for LUSD tokens used for currency conversion
- **Token metadata**: Decimal precision and symbol information for proper unit calculations

## 3. Step-by-step calculation

### Component A: LUSD token mints tracking
- **Purpose**: Captures all new LUSD tokens created through the Liquity protocol
- **Logic**: Filters Ethereum token transfer events where the `from_address` is the null address (`0x0000000000000000000000000000000000000000`) and the `token_address` is the LUSD contract (`0x5f98805a4e8be255a32880fdec7f6728c6568ba0`). These transfers represent new LUSD tokens being minted into circulation. Each mint event includes the recipient address, transaction details, and the `amount` of tokens created.
- **Key fields**: `block_timestamp` for timing, `amount` for quantity minted, `to_address` for recipient, and transaction identifiers for deduplication

### Component B: LUSD token redemptions tracking  
- **Purpose**: Captures all LUSD tokens removed from circulation through redemptions
- **Logic**: Filters Ethereum token transfer events where the `to_address` is either the null address (`0x0000000000000000000000000000000000000000`) or the dead address (`0x000000000000000000000000000000000000dead`) and the `token_address` is the LUSD contract. These transfers represent LUSD tokens being burned or permanently removed from circulation. Each redemption event captures the sender address, transaction details, and the `amount` of tokens destroyed.
- **Key fields**: `block_timestamp` for timing, `amount` for quantity redeemed, `from_address` for the sender, and transaction identifiers for deduplication

### Component C: Daily supply change calculation
- **Purpose**: Combines mints and redemptions to calculate net daily supply changes
- **Logic**: Unions the mint and redemption data, treating mints as positive amounts and redemptions as negative amounts. Data is truncated to daily timestamps and grouped by day, chain, and token address. Decimal corrections are applied based on token metadata to ensure proper unit representation. The daily aggregation sums all mints and redemptions within each day to produce net supply changes.
- **Key fields**: Daily `timestamp`, corrected token `amount`, `token_address`, and `token_symbol`

### Component D: Outstanding supply calculation
- **Purpose**: Maintains a running total of circulating LUSD tokens over time
- **Logic**: Calculates a cumulative sum of daily supply changes ordered by timestamp and partitioned by chain and token address. This creates a running balance of outstanding LUSD tokens from protocol inception. Forward filling is applied to ensure continuous daily data points, carrying forward the last known outstanding supply value for any missing days.
- **Key fields**: Daily `outstanding_supply` representing total circulating tokens at each point in time

### Final aggregation
- **Combining components**: The outstanding supply data flows directly from the cumulative calculation without additional joining
- **Currency conversion**: Outstanding supply values are converted to USD using end-of-day token price feeds, multiplying the token quantity by the USD price per token
- **Time aggregation**: Data is maintained at daily granularity with forward filling to ensure no gaps in the time series
- **Final calculation**: The USD-denominated outstanding supply is renamed to `asset_market_cap_circulating`, representing the total market value of all circulating LUSD tokens. The metric applies schema validation and chain availability filtering as final processing steps.

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

Tokenized asset value / AUM (assets under management) — price times circulating supply.

LiquityLQTY

Circulating asset market cap

Circulating asset market cap

Competitive landscape

Chain breakdown