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 Active users (daily) Methodology

## 1. Overview

Daily active users (DAU) for Notional measures the number of unique wallet addresses that interact with the Notional V2 protocol on any given day. This metric captures both trading activity and liquidity provision, providing insight into daily user engagement with the protocol. The calculation identifies unique users from specific contract events and deduplicates them by day to produce a count of distinct active addresses.

## 2. Data sources

The calculation relies on the following blockchain data sources:

- **Ethereum event logs**: Parsed event logs from the Notional V2 Router contract on Ethereum
- **Router contract events**: Specifically `Router_LendBorrowTrade_event` logs that capture lending, borrowing, and trading activities
- **Liquidity provision events**: `Router_nTokenSupplyChange_event` logs that capture changes in liquidity token supply indicating LP activity
- **Block timestamp data**: Ethereum block timestamps associated with each event for daily boundary determination

## 3. Step-by-step calculation

### Component A: User identification from protocol events

- **Purpose**: Identifies unique user addresses from Notional protocol interactions and classifies them by activity type
- **Logic**: The system extracts user addresses from two specific Notional V2 Router contract events on Ethereum. For `Router_LendBorrowTrade_event` logs, the `account` parameter identifies users who are classified as 'Trader' type. For `Router_nTokenSupplyChange_event` logs, the `account` parameter identifies users who are classified as 'LP' (liquidity provider) type. Each event record includes the block timestamp, transaction hash, and user address along with standardized metadata classifying all activity under the 'lending' market sector and business segment
- **Key fields**: `account` (user wallet address), `block_timestamp` (event timing), `transaction_hash` (unique transaction identifier), user classification as either 'Trader' or 'LP'

### Final aggregation

- **Combining components**: All user events from both trader and liquidity provider activities are combined into a unified dataset
- **Time aggregation**: Block timestamps are truncated to daily boundaries using day-level granularity, ensuring all activity within a 24-hour period is grouped together
- **Deduplication logic**: Within each day, user addresses are deduplicated using distinct selection to count each unique wallet address only once regardless of how many transactions they performed
- **Final calculation**: The daily active user count represents the number of unique wallet addresses that performed at least one lending, borrowing, trading, or liquidity provision action through the Notional V2 Router contract on each given day

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

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

Notional FinanceNOTE

Active users (daily)

Active users (daily)

Competitive landscape

Chain breakdown