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 Treasury Methodology

## 1. Overview

The Liquity treasury metric measures the total USD value of tokens held across Liquity protocol's treasury addresses on multiple blockchains. This metric provides visibility into the protocol's financial reserves by tracking token balances in designated treasury wallets and converting them to USD values using end-of-day price feeds. The calculation aggregates holdings across Ethereum, Arbitrum, and Optimism networks.

## 2. Data sources

- **ERC20 Transfer events**: Parsed `Transfer` events from Ethereum, Arbitrum, and Optimism blockchains to track token movements into and out of treasury addresses
- **End-of-day price feeds**: Daily token price data in USD for converting token balances to fiat values
- **Token metadata**: Contract information including token symbols and decimal places for proper balance calculations
- **Blockchain transaction data**: Transaction logs and traces from supported networks to capture all relevant token transfers

## 3. Step-by-step calculation

### Component A: Treasury address identification
- **Purpose**: Define the specific addresses that constitute Liquity's treasury across different chains
- **Logic**: Uses hardcoded treasury addresses for each supported blockchain network. On Arbitrum, tracks address `0xc5adb3d91329e1600cbf573485b1d3207bcf6de2`. On Ethereum, monitors two addresses: `0xf06016d822943c42e3cb7fc3a6a3b1889c1045f8` and `0xccb2656afb1cc4cb130e8c8c903ad674069c6fcd`. On Optimism, tracks address `0xd2d4e9024d8c90ab52032a9f1e0d92d4ce20191b`
- **Key fields**: `chain_id`, `account_address` for identifying treasury locations

### Component B: Token balance change calculation
- **Purpose**: Calculate daily balance changes for each token in each treasury address by processing blockchain transfer events
- **Logic**: Processes parsed ERC20 `Transfer` events to identify inflows and outflows for treasury addresses. Inbound transfers (where treasury address is the recipient) increase balances, while outbound transfers (where treasury address is the sender) decrease balances. The macro `calculate_token_balance_changes` handles the complex logic of tracking these movements while accounting for token decimal places and filtering relevant events
- **Key fields**: `timestamp`, `token_address`, `balance` (net change), `token_symbol`

### Component C: Cumulative balance computation
- **Purpose**: Convert daily balance changes into running total balances for each token and address combination
- **Logic**: Applies a window function to sum balance changes over time, partitioned by timestamp grain, chain identifier, account address, and token address. Orders by timestamp to create cumulative balances that represent the total token holdings at each point in time
- **Key fields**: `balance` (cumulative total), partitioned by `timestamp_grain`, `chain_id`, `account_address`, `token_address`

### Component D: Data gap filling
- **Purpose**: Ensure continuous data availability by filling forward the last known balance for periods without transactions
- **Logic**: Uses the `fill_forward` macro to propagate the most recent balance value for each token-address combination on days when no transfer events occurred. This ensures the treasury metric has daily values even when no tokens were moved
- **Key fields**: `timestamp`, `balance` (forward-filled values)

### Component E: USD conversion
- **Purpose**: Convert token balances from native units to USD values using daily price feeds
- **Logic**: Joins the filled balance data with end-of-day price feeds, matching on timestamp, chain identifier, and token address. Multiplies token balance by USD price using safe multiplication to handle potential null values. Filters to include only positive balances and daily price grain data
- **Key fields**: `amount` (USD value), `price_usd` from price feeds

### Final aggregation
- **Combining components**: Aggregates USD values across all tokens and treasury addresses for each chain and timestamp, creating a total treasury value per chain per day
- **Currency conversion**: Uses end-of-day token prices to convert native token balances to USD, applying safe multiplication to prevent errors from missing price data
- **Time aggregation**: Groups data by daily timestamps, maintaining separate values for each blockchain network
- **Final calculation**: Sums USD values of all token holdings across treasury addresses, applies chain availability filtering, and formats using the `finalize_metric_treasury` macro with a fill-zeros strategy for missing data points

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

Total value of a project's onchain treasury, including its native token.

LiquityLQTY

Treasury

Treasury

Competitive landscape

Chain breakdown