# Spark Liquidity Layer Spark Liquidity Layer AUM Methodology

## 1. Overview

Spark Liquidity Layer AUM is calculated as the total value of assets managed by the Spark Liquidity Layer. Liquidity deployed across various allocators, integration proxies, and yield-generating protocols—including Aave V3, Morpho, and Ethena—is reflected by this metric. Assets held in SparkLend and Aave V3 deposit contracts are tracked and adjusted for accrued interest. Spark's own asset SPK is explicitly excluded from the calculation, ensuring the metric represents external assets under management rather than treasury holdings.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events, `Mint`, `Burn`, and `BalanceTransfer` events from `spToken` and `AToken` contracts, `ReserveDataUpdated` events from `Pool` and `LendingPool` contracts, and sUSDe cooldown balance records, covering Ethereum, Arbitrum, Base, Optimism, and 10 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Standard asset balance tracking

- **Purpose**: To track balances of non-rebasing assets held by Spark Liquidity Layer accounts.
- **Logic**: ERC-20 token transfers are parsed for designated Spark Liquidity Layer accounts, including ALM Proxy, Morpho D3M, PSM3, and Sub Proxy addresses. Transfers to these accounts are treated as balance increases, while transfers from them are treated as balance decreases. Spark's native asset SPK is filtered out and excluded from these balances. Rebasing assets are also excluded from this component to prevent double-counting or incorrect raw balance tracking.
- **Key fields**: `block_timestamp`, `token_address`, `account_address`, `amount`

### Component B: SparkLend active deposit calculation

- **Purpose**: To calculate interest-adjusted balances for assets deposited into SparkLend.
- **Logic**: `Mint`, `Burn`, and `BalanceTransfer` events from `spToken` contracts are aggregated to determine the scaled principal balance for each account. The scaled principal balance is then multiplied by the liquidity index, which is updated via `ReserveDataUpdated` events from `Pool` contracts, to calculate the actual active deposit balance including accrued interest.
- **Key fields**: `block_timestamp`, `deposit_token_address`, `account_address`, `index_value`, `amount`

### Component C: Aave V3 active deposit calculation

- **Purpose**: To calculate interest-adjusted balances for assets deposited into Aave V3.
- **Logic**: `Mint`, `Burn`, and `BalanceTransfer` events from `AToken` contracts are aggregated to determine the scaled principal balance for each account. The scaled principal balance is then multiplied by the liquidity index, which is updated via `ReserveDataUpdated` events from `LendingPool` contracts, to calculate the actual active deposit balance including accrued interest.
- **Key fields**: `block_timestamp`, `deposit_token_address`, `account_address`, `index_value`, `amount`

### Component D: Ethena cooldown balance integration

- **Purpose**: To capture assets undergoing the Ethena cooldown period.
- **Logic**: Cooldown balances for sUSDe are extracted from state records for Spark Liquidity Layer accounts and added to the total asset balances.
- **Key fields**: `timestamp`, `account_address`, `token_address`, `amount`

### Component E: Normalization, USD conversion, and aggregation

- **Purpose**: To normalize asset balances, convert them to USD, and aggregate them into the final daily AUM metric.
- **Logic**: All tracked balances (standard assets, SparkLend active deposits, Aave V3 active deposits, and Ethena cooldown balances) are combined. Raw amounts are normalized by decimal precision using asset metadata. Daily balance deltas are calculated, and missing days are filled forward to maintain a continuous time series. Finally, the normalized balances are multiplied by end-of-day price feeds to convert the values to USD, and the final daily AUM is aggregated.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `token_address`, `spark_liquidity_layer_aum`

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

Total USD value of assets managed by the Spark Liquidity Layer.

Spark Liquidity Layer AUM

Asset management

Lenders deposit funds into Spark and receive interest payments from borrowers (supply-side fees).

Spark is a non-custodial lending protocol built on Ethereum. Spark’s development team Phoenix Labs was founded in early 2023.

SPK tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue).

Spark Liquidity Layer

Spark Liquidity Layer AUM

Spark Liquidity Layer AUM

Chain breakdown