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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Notional Finance

# Notional Finance Total value locked Methodology

## 1. Overview

Total Value Locked (TVL) for Notional protocol measures the USD value of all tokens held across the protocol's key smart contract addresses on Ethereum. This metric quantifies the total capital deployed in Notional's lending platform at any given point in time. The calculation aggregates token balances from five specific Ethereum addresses, converts them to USD using end-of-day prices, and applies time series processing to create a continuous daily metric.

## 2. Data sources

The calculation relies on several key data sources:
- **Token balance snapshots**: Daily balance data for ERC20 tokens held at specific Ethereum addresses, derived from parsed `Transfer` events
- **End-of-day price feeds**: USD price data for tokens to enable value conversion
- **Token metadata**: Token contract information including decimal places for amount normalization
- **Chain availability data**: Configuration data indicating when blockchain networks were active and available

## 3. Step-by-step calculation

### Component A: Portfolio balance calculation
- **Purpose**: Calculates the USD value of all token holdings across Notional's key addresses
- **Logic**: The system identifies five specific Ethereum addresses that represent Notional protocol contracts: `0x1344a36a1b56144c3bc62e7757377d288fde0369`, `0xaac5145f5286a3c6a06256fdfbf5b499aa965c9c`, `0xdbbb034a50c436359fb6d87d3d669647e0fa24d5`, `0xc91864be1b097c9c85565cdb013ba2307ffb492a`, and `0x0f12b85a331acb515e1626f707aade62e9960187`. For each address, the system aggregates daily token balances across all ERC20 tokens held, excluding the specific token `0xcfeaead4947f0705a14ec42ac3d44129e1ef3ed5`. Token amounts are normalized using their decimal specifications and converted to USD using end-of-day price feeds.
- **Key fields**: `balance` (USD value of holdings), `timestamp` (daily snapshots), `chain` (Ethereum), `token_address` (specific tokens held)

### Component B: Project metadata enrichment
- **Purpose**: Adds protocol identification and business classification to the portfolio data
- **Logic**: The system enriches the portfolio data with Notional-specific metadata, including the protocol identifier and business segment classification. All holdings are classified under the lending market sector and lending business segment, reflecting Notional's core function as a lending protocol.
- **Key fields**: `market_sector_id` (set to 'lending'), `business_segment_id` (set to 'lending'), `product_id` (set to null)

### Component C: TVL aggregation
- **Purpose**: Aggregates all portfolio balances into a single TVL metric
- **Logic**: The system sums all token balances across the five addresses to calculate total protocol TVL. The aggregation is performed by timestamp, timestamp grain (daily), market sector, business segment, product, and chain. This creates a single TVL value for each day representing the total value locked in the Notional protocol.
- **Key fields**: `tvl` (total USD value), `timestamp` (daily), `chain_id` (Ethereum)

### Final aggregation
- **Combining components**: All portfolio balances are summed together to produce a single daily TVL figure for the entire Notional protocol
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with proper decimal normalization applied based on each token's specifications
- **Time aggregation**: The metric is calculated on daily boundaries, creating a continuous time series of TVL values
- **Final calculation**: The final TVL represents the sum of all USD-denominated token balances held across Notional's five key Ethereum addresses, excluding the specified token, with gaps filled using zeros and chain availability filters applied to exclude periods when Ethereum data was unavailable

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Notional FinanceNOTE

Total value locked

Total value locked

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