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 (net) Methodology

## 1. Overview

Treasury net measures the total USD value of all tokens held in Liquity's official treasury addresses across Ethereum, Arbitrum, and Optimism networks. This metric provides insight into the protocol's financial resources and excludes native protocol tokens to focus on external asset holdings. The calculation tracks balance changes over time and converts all holdings to USD using end-of-day pricing.

## 2. Data sources

- **Token transfer events**: Parsed `Transfer` events from Ethereum, Arbitrum, and Optimism blockchains to track balance changes for treasury addresses
- **End-of-day price feeds**: Daily token price data in USD for converting token balances to fiat values
- **Token metadata**: Token symbol and decimal information for proper balance calculations
- **Blockchain transaction logs**: Raw transaction data used to derive token balance changes through the balance tracking system

## 3. Step-by-step calculation

### Component A: Treasury balance tracking
- **Purpose**: Identifies and tracks token balance changes for Liquity's official treasury addresses across multiple chains
- **Logic**: The system monitors specific treasury addresses on each supported chain - `0xc5adb3d91329e1600cbf573485b1d3207bcf6de2` on Arbitrum, `0xf06016d822943c42e3cb7fc3a6a3b1889c1045f8` and `0xccb2656afb1cc4cb130e8c8c903ad674069c6fcd` on Ethereum, and `0xd2d4e9024d8c90ab52032a9f1e0d92d4ce20191b` on Optimism. The balance tracking macro processes token transfer events to calculate net balance changes for each token held by these addresses. Native protocol tokens are specifically excluded from the calculation - `0xfb9e5d956d889d91a82737b9bfcdac1dce3e1449` on Arbitrum and `0x6dea81c8171d0ba574754ef6f8b412f2ed88c54d` on Ethereum are filtered out to focus on external asset holdings rather than protocol-owned tokens
- **Key fields**: `timestamp`, `chain_id`, `account_address`, `token_address`, `balance` (net change), `token_symbol`

### Component B: Cumulative balance calculation
- **Purpose**: Converts balance changes into running cumulative balances over time
- **Logic**: Using window functions, the system calculates running sums of balance changes partitioned by timestamp grain, chain, account address, and token address. This creates a time series showing the total token balance held at each point in time. The cumulative calculation ensures that each data point represents the absolute balance rather than just the change from the previous period
- **Key fields**: `balance` (cumulative running total)

### Component C: Time series completion
- **Purpose**: Ensures continuous daily data points even when no transactions occurred
- **Logic**: The fill-forward process interpolates missing data points by carrying forward the last known balance for each token-address-chain combination. This creates a complete daily time series where periods with no activity still show the current balance rather than appearing as gaps in the data
- **Key fields**: Forward-filled `balance` values maintaining last known state

### Component D: USD conversion
- **Purpose**: Converts all token balances to USD values for aggregation
- **Logic**: Token balances are joined with end-of-day price feeds using timestamp, chain, and token address as join keys. The system multiplies each token balance by its corresponding USD price to calculate the dollar value of holdings. Only positive balances are included in the conversion, and the price feed must have daily granularity to match the metric's time grain
- **Key fields**: `amount` (USD value calculated as balance × price), `price_usd`

### Final aggregation
- **Combining components**: All USD-converted token balances are summed to create a single treasury net value representing the total dollar value of all external tokens held across all chains and treasury addresses
- **Currency conversion**: USD conversion occurs at the token level before aggregation, using end-of-day prices matched to the balance timestamp
- **Time aggregation**: Data is aggregated to daily boundaries with each day showing the treasury's total USD value as of that date
- **Final calculation**: The treasury net value equals the sum of all (token balance × USD price) calculations for all non-excluded tokens held in treasury addresses across all supported chains, with zero-filling applied for periods with no holdings

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

Total value of a project's treasury excluding its native token.

LiquityLQTY

Treasury (net)

Treasury (net)

Competitive landscape

Chain breakdown