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 Outstanding supply Methodology

## 1. Overview

The Liquity outstanding supply metric measures the total circulating supply of LUSD stablecoin tokens at any given time. This metric tracks the net result of all LUSD tokens minted and burned through the Liquity protocol, providing a real-time view of the protocol's stablecoin supply. The calculation identifies mint and burn events from Ethereum blockchain token transfers and maintains a running cumulative balance to determine the outstanding supply.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Ethereum token transfer events**: Parsed `Transfer` events for the LUSD token contract (`0x5f98805a4e8be255a32880fdec7f6728c6568ba0`) containing transaction details, addresses, and transfer amounts
- **Token metadata**: LUSD token decimal precision information for proper amount normalization
- **End-of-day price feeds**: USD price data for LUSD token to enable currency conversion of supply values

## 3. Step-by-step calculation

### Component A: LUSD mint identification
- **Purpose**: Identifies when new LUSD tokens are created and added to circulation
- **Logic**: Analyzes Ethereum token transfer events to find transfers where the `from_address` is the null address (`0x0000000000000000000000000000000000000000`). These represent newly minted tokens being transferred to user addresses. Only includes non-removed transfer events to ensure data quality
- **Key fields**: Uses `block_timestamp`, `transaction_hash`, `log_index`, `to_address`, `token_address`, and `value` from transfer events

### Component B: LUSD burn identification  
- **Purpose**: Identifies when LUSD tokens are destroyed and removed from circulation
- **Logic**: Analyzes Ethereum token transfer events to find transfers where the `to_address` is either the null address (`0x0000000000000000000000000000000000000000`) or the dead address (`0x000000000000000000000000000000000000dead`). These represent tokens being burned or permanently removed from circulation. Only includes non-removed transfer events
- **Key fields**: Uses `block_timestamp`, `transaction_hash`, `log_index`, `from_address`, `token_address`, and `value` from transfer events

### Component C: Combined mint and burn aggregation
- **Purpose**: Combines mint and burn events into a unified dataset for net supply calculation
- **Logic**: Unions mint events with burn events, converting burn amounts to negative values to represent supply reduction. Truncates timestamps to daily boundaries for aggregation. Applies decimal correction using token metadata to normalize amounts to proper precision
- **Key fields**: Produces `timestamp`, `chain`, `token_address`, `amount` (positive for mints, negative for burns), and `token_symbol`

### Component D: Daily net change calculation
- **Purpose**: Calculates the net daily change in LUSD supply from all mint and burn activity
- **Logic**: Groups all mint and burn events by day, chain, and token, then sums the amounts to determine the net supply change for each day. This accounts for the total impact of protocol activity on token supply
- **Key fields**: Aggregates to produce daily `amount` representing net supply change per day

### Component E: Cumulative outstanding supply calculation
- **Purpose**: Calculates the running total outstanding supply over time
- **Logic**: Applies a cumulative sum window function ordered by timestamp to calculate the total outstanding supply at each point in time. This running total represents the net result of all historical mints minus burns up to that date
- **Key fields**: Produces `outstanding_supply` field containing the cumulative token balance

### Final aggregation
- **Combining components**: The outstanding supply values flow through forward filling to ensure continuous daily time series data with no gaps
- **Currency conversion**: USD conversion is applied using end-of-day price feeds, with decimal correction disabled since amounts were already normalized in earlier steps
- **Time aggregation**: Data is aggregated to daily boundaries with forward filling to maintain complete time series
- **Final calculation**: The final metric represents the total circulating supply of LUSD tokens in USD terms, validated against the standardized outstanding supply schema and filtered by chain availability

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

Circulating supply of stablecoins issued by the project.

LiquityLQTY

Outstanding supply

Outstanding supply

Competitive landscape

Chain breakdown