Liquidity providers deposit funds into Notional and receive trading fees from borrowers & lenders (supply-side fees).

Notional is a non-custodial fixed-rate, fixed-term lending protocol built on Ethereum. Notional was founded by Jeff Wu & Teddy Woodward and launched in 2020.

NOTE holders own and govern the protocol. They currently take a cut of the total trading fees paid by borrowers & lenders and all of the COMP incentives from funds deposited to Compound (revenue). Notional’s investors include Coinbase Ventures, Nascent Ventures, 1Confirmation, etc.

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Lending

Notional Finance

# Notional Finance Trading volume Methodology

## 1. Overview

Notional trading volume measures the daily USD value of lending and borrowing transactions on the Notional Finance protocol. This metric captures the volume of capital flowing through Notional's money markets by tracking `LendBorrowTrade` events from the protocol's Router contract on Ethereum. The calculation focuses specifically on transactions involving compound LP tokens (cETH, cDAI, cUSDC, cWBTC) that are allowlisted by Notional Finance.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `LendBorrowTrade` events from Notional v2 Router contract containing currency identifiers and trade amounts
- **External data**: End-of-day token price feeds for USD conversion of compound LP token values
- **Token metadata**: Hardcoded allowlist of supported compound LP tokens including cETH, cDAI, cUSDC, and cWBTC with their contract addresses and currency ID mappings

## 3. Step-by-step calculation

### Component A: Trading event extraction
- **Purpose**: Captures all lending and borrowing transactions from Notional's Router contract
- **Logic**: Extracts `LendBorrowTrade` events from Ethereum blockchain, filtering for Notional v2 Router contract activities. Each event contains a `currencyId` field identifying the asset and a `netAssetCash` field representing the transaction amount. All transactions are classified under the 'lending' business line, market sector, and business segment
- **Key fields**: `currencyId` (asset identifier), `netAssetCash` (transaction amount), `block_timestamp` (transaction time), `transaction_hash` and `log_index` (event identifiers)

### Component B: Token allowlist filtering
- **Purpose**: Restricts analysis to compound LP tokens officially supported by Notional Finance
- **Logic**: Joins trading events with a hardcoded allowlist containing four compound LP tokens. The allowlist maps currency IDs (1=cETH, 2=cDAI, 3=cUSDC, 4=cWBTC) to their corresponding token symbols and contract addresses. Only transactions involving these allowlisted currencies are included in the final metric
- **Key fields**: `currency_id` (linking key), `token_symbol` (human-readable token name), `token_address` (contract address for the compound LP token)

### Final aggregation
- **Combining components**: Trading events are inner joined with the token allowlist based on `currency_id`, ensuring only supported compound LP tokens are included
- **Currency conversion**: Transaction amounts are converted to USD using end-of-day token prices with automatic decimal place correction for each compound LP token
- **Time aggregation**: Data is aggregated by day using timestamp truncation, with each day representing the sum of all trading volume for that 24-hour period
- **Final calculation**: The absolute value of `netAssetCash` amounts ensures both lending (positive) and borrowing (negative) transactions contribute positively to trading volume. Missing days are forward-filled with zero values to maintain continuous time series data

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

Total value of spot trades executed on the exchange.

Notional FinanceNOTE

Trading volume

Trading volume

Competitive landscape

Chain breakdown