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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Stablecoin issuers

Liquity

# Liquity Active users (daily) Methodology

## 1. Overview

The Liquity daily active users (DAU) metric measures the number of unique user addresses that actively interact with Liquity's borrowing functionality on a daily basis. This metric specifically tracks users who pay LUSD borrowing fees, representing active engagement with Liquity's stablecoin issuance protocol. The calculation counts distinct borrower addresses per day based on their fee payment activities.

## 2. Data sources

The metric relies on the following raw blockchain data sources:
- **Ethereum event logs**: Parsed `LUSDBorrowingFeePaid` events from Liquity v1's BorrowerOperations contract on Ethereum
- **Transaction metadata**: Ethereum block timestamps, transaction hashes, and log indices for event positioning and time-based aggregation
- **Event parameters**: Borrower addresses extracted from the `LUSDBorrowingFeePaid` event emissions

## 3. Step-by-step calculation

### Component A: User interaction identification
- **Purpose**: Identify active users based on LUSD borrowing fee payments
- **Logic**: Parse `LUSDBorrowingFeePaid` events from Liquity v1's BorrowerOperations contract on Ethereum. Extract the borrower address parameter from each event, which represents users actively paying fees for LUSD loans. Each event indicates a user interaction with Liquity's borrowing functionality. Apply business classification by tagging interactions with market sector as stablecoin issuers, business segment as stablecoin issuer, and product as LUSD.
- **Key fields**: `user_address` (borrower address from event), `block_timestamp` (event timing), `chain` (Ethereum), `user_type` (Borrower), `product_id` (lusd)

### Component B: Daily user aggregation
- **Purpose**: Calculate distinct daily active users from identified interactions
- **Logic**: Truncate block timestamps to day-level granularity to establish daily boundaries. Group all user interactions by day and select distinct user addresses within each day period. This ensures each unique user address is counted only once per day regardless of how many borrowing fee payments they made.
- **Key fields**: `timestamp` (truncated to day), `user_dau` (distinct user addresses per day), `timestamp_grain` (day), `chain` (Ethereum)

### Final aggregation
- **Combining components**: The user interactions are directly aggregated at the daily level without combining separate components
- **Currency conversion**: No currency conversion required as this metric counts user addresses, not financial values
- **Time aggregation**: Block timestamps are truncated to day boundaries using day-level granularity, creating discrete daily periods for user counting
- **Final calculation**: Count distinct user addresses per day where each address represents a unique active user who paid LUSD borrowing fees during that day period. Apply chain availability filtering to ensure data completeness for Ethereum blockchain data.

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

Unique revenue-generating users over a fixed 24-hour window.

LiquityLQTY

Active users (daily)

Active users (daily)

Competitive landscape

Chain breakdown