Liquidity providers deposit funds to the lending pool and receive a portion of the interest (supply-side fees).

TrueFi is a non-custodial lending protocol built on Ethereum offering undercollateralized loans for verified borrowers. TrueFi was founded by Rafael Cosman and launched in 2020.

TRU tokenholders own and govern the protocol. They currently take a cut of the interest and an origination fee (revenue). TrueFi’s investors include a16z, BlockTower Capital, Alameda Research etc.

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Lending

TrueFi

# TrueFi Active loans Methodology

## 1. Overview

Active loans represents the total outstanding loan principal across all TrueFi protocol versions (v1, v2, v3) at any given point in time. This metric tracks the net cumulative balance of loan disbursements minus repayments and liquidations, providing a running balance of active lending positions. The calculation uses a cumulative sum approach where loan originations add to the balance and loan closures (repayments/liquidations) subtract from it.

## 2. Data sources

The calculation draws from several types of blockchain data sources:
- **TrueFi v1 events**: Parsed `Pool_Borrow_event` logs from Ethereum TrueFi v1 lending pool contracts 
- **TrueFi v2 events**: Parsed `TrueLender_fund_function` call traces, `LoanToken_Settled_event` logs, and `SAFU_Liquidated_event` logs from Ethereum TrueFi v2 contracts
- **TrueFi v3 events**: Parsed `ManagedPortfolio_BulletLoanCreated_event` logs, `ManagedPortfolioFactory_createPortfolio_function` calls, `ManagedPortfolioFactory_PortfolioCreated_event` logs, and `ManagedPortfolio_ManagerFeeChanged_event` logs from Ethereum TrueFi v3 contracts
- **Token transfer data**: Ethereum token transfer events to validate actual fund movements and loan disbursements
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision correction

## 3. Step-by-step calculation

### Component A: TrueFi v1 loan tracking
- **Purpose**: Tracks loan originations and repayments for TrueFi v1 protocol
- **Logic**: Borrows are identified from `Pool_Borrow_event` logs joined with corresponding token transfer events from specific market contract addresses. The join validates that funds were actually transferred and captures the loan amount plus fees. Repayments are tracked through token transfers back to borrower escrow addresses from market contracts, excluding transfers between market addresses. The system filters for specific v1 token addresses and only processes events before v2 launch date to avoid overlap
- **Key fields**: `block_timestamp` for timing, `escrow_address` for loan identification, `token_address` for asset type, `amount` for loan value including fees

### Component B: TrueFi v2 loan tracking  
- **Purpose**: Tracks loan funding, settlements, and liquidations for TrueFi v2 protocol
- **Logic**: Borrows are captured from `TrueLender_fund_function` calls joined with token transfers to loan token addresses, ensuring actual fund disbursement. Repayments use `LoanToken_Settled_event` logs joined with borrow data to match loan closures. Liquidations are tracked through `SAFU_Liquidated_event` logs, calculating total recovered amount as repaid amount plus deficit. All events link to the loan token address as the escrow identifier
- **Key fields**: `escrow_address` (loan token address), `token_address` for underlying asset, `amount` for principal or recovery amounts, `transaction_hash` for event linking

### Component C: TrueFi v3 loan tracking
- **Purpose**: Tracks structured bullet loans in TrueFi v3 managed portfolios with fee calculations
- **Logic**: Borrows are identified from `ManagedPortfolio_BulletLoanCreated_event` logs joined with portfolio metadata from creation events. Fee calculation combines protocol origination fees (0.5% annually) with manager fees that may change over time through `ManagerFeeChanged_event` logs. Repayments are synthetic, calculated by adding loan duration to creation timestamp to determine maturity dates, but only included if maturity has passed. Portfolio addresses serve as escrow identifiers
- **Key fields**: `portfolio_address` as escrow, `loan_id` for unique identification, `loan_duration_seconds` for maturity calculation, `principal_amount` for loan size, manager fees and protocol fees

### Component D: Event standardization and union
- **Purpose**: Combines all protocol versions into unified event stream
- **Logic**: All borrow events are assigned positive amounts while repayments and liquidations are assigned negative amounts. Events are standardized to common schema with daily timestamp truncation, chain identification, business line classification as "Lending", and version tagging. The union creates a single chronological stream of net loan balance changes
- **Key fields**: Standardized `timestamp`, `chain`, `version`, `escrow_address`, `token_address`, `amount` (positive or negative)

### Component E: Cumulative balance calculation
- **Purpose**: Converts event stream into running outstanding loan balances
- **Logic**: Running cumulative sum is calculated using window functions partitioned by escrow address and token address, ordered by timestamp. This creates a time series showing net outstanding balance after each transaction. Negative cumulative values are clamped to zero to prevent impossible negative loan balances that could result from data inconsistencies
- **Key fields**: `active_loans` as cumulative sum, partition keys for proper grouping

### Component F: Time series completion and currency conversion
- **Purpose**: Creates complete daily time series with USD values
- **Logic**: Forward fill macro extends the last known balance value to fill gaps in the daily time series, ensuring continuous reporting. Currency conversion applies end-of-day token prices to convert native token amounts to USD equivalent values. Decimal correction adjusts for each token's decimal precision to normalize amounts to standard units
- **Key fields**: USD-converted `active_loans` values, daily timestamps without gaps

### Final aggregation
- **Combining components**: All protocol versions and tokens are aggregated into a single daily active loans metric, summed across all escrow addresses and tokens within each day
- **Currency conversion**: USD conversion uses end-of-day price feeds matched to transaction dates, with decimal correction applied before price multiplication
- **Time aggregation**: Daily boundaries are established through timestamp truncation, with forward-fill ensuring no missing dates in the time series  
- **Final calculation**: The metric represents the sum of all positive outstanding loan balances (in USD) across all TrueFi protocol versions and supported tokens, with chain availability filtering applied to ensure data quality

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

Value of loans currently outstanding to borrowers.

TrueFiTRU

Active loans

Active loans

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