# Seamless Leverage Tokens Active loans Methodology

## 1. Overview

Active loans for Seamless Leverage Tokens is measured as the total value of debt held within leverage token positions. This value represents the portion of assets borrowed by the protocol to maintain leveraged exposure for users. The metric is utilized to track the capital efficiency and borrowing demand specifically within the Seamless Leverage Tokens product.

## 2. Data sources

- **Blockchain events**: Contract state snapshots from Seamless Leverage Tokens contracts, covering Ethereum and Base
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Leverage token debt extraction

- **Purpose**: Captures the outstanding debt values from leverage token strategy contracts.
- **Logic**: Contract state data is retrieved from Seamless Leverage Tokens contracts. The debt component is extracted by parsing JSON-formatted state snapshots, specifically identifying the current debt value within the contract's state array. Strategy-specific addresses are mapped to their corresponding underlying assets, such as WETH and USDC, to ensure accurate asset identification and categorization.
- **Key fields**: `current_debt` (debt amount), `token_address` (underlying asset identification), `chain` (deployment network)

### Component B: Normalization and USD conversion

- **Purpose**: Normalizes debt quantities and converts them to a common currency for aggregation.
- **Logic**: Extracted debt amounts are normalized by decimal precision based on the metadata of the underlying asset. The resulting quantities are converted to USD by multiplying the amounts by end-of-day price feeds. Daily averages are calculated for each asset and chain to represent the outstanding loan balance for each UTC day. A fill-forward operation is applied to ensure a continuous time series by carrying the last known debt balance into days where no state updates occurred.
- **Key fields**: `timestamp` (daily granularity), `active_loans` (USD value)

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

Value of loans currently outstanding to borrowers.

Active loans

Lending

Seamless Leverage Tokens

Active loans

Active loans

Chain breakdown