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

ZeroLend is a non-custodial lending protocol built on Ethereum and other adjacent blockchains.

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

github

twitter

discord

website

Lending

ZeroLend

# ZeroLend Active loans Methodology

## 1. Overview

Active loans represents the total USD value of outstanding borrower debt positions in ZeroLend's lending protocol at the end of each day. This metric combines both variable-rate and stable-rate loan positions across multiple blockchain networks. The calculation tracks debt token supply changes through mint and burn events, applies appropriate scaling for variable-rate loans using cumulative interest indices, and aggregates the results into daily USD amounts.

## 2. Data sources

- **ZeroLend debt token events**: Parsed `Mint` and `Burn` events from VToken (variable debt) and SToken (stable debt) contracts deployed across Blast, Ethereum, Manta, zkSync Era, Base, and Linea networks
- **Market configuration events**: Parsed `ReserveInitialized` events from ZeroLend's LendingPoolConfigurator contracts that establish the relationships between debt tokens and underlying assets
- **Token price data**: End-of-day price feeds for USD conversion of outstanding debt positions
- **Token metadata**: Decimal precision information for proper amount calculations and standardization

## 3. Step-by-step calculation

### Component A: Variable debt tracking
- **Purpose**: Calculate outstanding variable-rate loan balances using VToken supply changes
- **Logic**: Process `Mint` and `Burn` events from VToken contracts across supported chains. For mint events, extract the `value` field (representing new debt issued) and subtract `balanceIncrease` (accrued interest already owed). For burn events, add the `value` (debt repaid) to `balanceIncrease` (accrued interest) and negate the total. Apply index-based scaling by dividing amounts by the `index` value (representing cumulative interest growth) with a rounding adjustment of `index/2` added to the numerator. Create a running cumulative sum of these scaled amounts per VToken to track net outstanding scaled debt. Multiply final scaled debt by the current `index` value to convert back to actual debt amounts. Group results by day, chain, protocol version, VToken address, and underlying token address.
- **Key fields**: `value` (debt amount), `balanceIncrease` (accrued interest), `index` (cumulative interest multiplier scaled by 10^27), `vtoken_address` (debt token contract), `underlying_token_address` (borrowed asset)

### Component B: Stable debt tracking  
- **Purpose**: Calculate outstanding stable-rate loan balances using SToken supply tracking
- **Logic**: Process `Mint` and `Burn` events from SToken contracts on supported chains (Blast, Manta, zkSync Era). Extract the `newTotalSupply` field directly from both mint and burn events, as this represents the current total outstanding stable debt for each token. Take the daily average of all supply values within each day to smooth intraday fluctuations. Join with market configuration data to map SToken addresses to their underlying token addresses. No scaling calculations are needed since stable debt tokens track total supply directly.
- **Key fields**: `newTotalSupply` (total outstanding stable debt), `stoken_address` (stable debt token contract), `underlying_token_address` (borrowed asset)

### Final aggregation
- **Combining components**: Union variable and stable debt data using respective debt token addresses as the `lending_market_address` identifier. Group by timestamp, chain, protocol version, lending market address, and underlying token address, taking the average amount per day to handle multiple events within the same day.
- **Gap filling**: Apply forward-filling logic to ensure continuous daily time series data, carrying forward the last known value for missing days across all dimension combinations.
- **Currency conversion**: Convert debt amounts to USD using end-of-day token price feeds and apply decimal corrections based on each token's precision metadata to ensure proper scaling.
- **Final calculation**: Sum all debt positions across variable and stable categories to arrive at total active loans value in USD, with data validated and gaps filled according to the finalize metric specifications.

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

Value of loans currently outstanding to borrowers.

ZeroLendZERO

Active loans

Active loans

Competitive landscape

Chain breakdown