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).

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ZeroLend

# ZeroLend Total value locked Methodology

## 1. Overview

ZeroLend TVL measures the total value locked in the ZeroLend lending protocol across multiple blockchain networks. The metric represents the sum of net token deposits in lending markets plus the total value of active loans (both variable and stable rate borrows). This provides a comprehensive view of capital utilization within the protocol, accounting for both supplier deposits and borrower demand.

## 2. Data sources

The calculation relies on several types of blockchain data and external sources:

- **Market configuration events**: Parsed `ReserveInitialized` events from ZeroLend `LendingPoolConfigurator` contracts across Ethereum, Blast, Manta, zkSync Era, Base, and Linea networks to identify lending market parameters
- **Token transfer data**: ERC-20 token transfer events indexed by both sender and recipient addresses across all supported chains
- **Debt token events**: Parsed `Mint` and `Burn` events from VToken (variable debt) and SToken (stable debt) contracts
- **External price data**: End-of-day token price feeds for USD conversion
- **Token metadata**: Token decimal precision and other metadata for amount normalization

## 3. Step-by-step calculation

### Component A: Market identification
- **Purpose**: Identifies all active lending markets and their associated token contracts
- **Logic**: Processes `ReserveInitialized` events from various ZeroLend configurator contracts across different chains and market segments (main, RWA stablecoin, ETH LRT, BTC LRT, Foxy, Croak). Each event contains the underlying token address, aToken address (interest-bearing deposit token), and debt token addresses (both stable and variable rate)
- **Key fields**: `asset` (underlying token), `aToken` (deposit receipt token), `stableDebtToken`, `variableDebtToken`

### Component B: Net deposit tracking
- **Purpose**: Calculates the net flow of tokens into and out of lending markets
- **Logic**: Tracks token transfers where the aToken contract is either the sender or recipient. Inflows are identified as transfers TO aToken addresses (users depositing underlying tokens), while outflows are transfers FROM aToken addresses (users withdrawing). The calculation maintains a cumulative sum of net flows (inflows minus outflows) over time for each token and chain combination
- **Key fields**: `value` (transfer amount), `token_address` (underlying token), `to_address`/`from_address` (aToken contracts)

### Component C: Variable rate borrows
- **Purpose**: Calculates outstanding variable rate debt using interest-accrual mechanics
- **Logic**: Processes `Mint` and `Burn` events from VToken contracts. Variable debt in ZeroLend uses a scaled debt model where the actual debt grows over time via a liquidity index. The calculation first scales debt amounts using the index value (27 decimal precision), maintains a cumulative sum of scaled debt changes, then multiplies by the current index to get the real outstanding debt amount. Burns subtract debt while mints add debt
- **Key fields**: `value` (debt amount), `index` (liquidity index for interest accrual), `balanceIncrease` (accrued interest adjustment)

### Component D: Stable rate borrows  
- **Purpose**: Tracks outstanding stable rate debt
- **Logic**: Uses `Mint` and `Burn` events from SToken contracts where the `newTotalSupply` parameter directly represents the total outstanding stable debt for that market. Daily averages of total supply values are calculated to smooth out intraday fluctuations
- **Key fields**: `newTotalSupply` (total outstanding stable debt)

### Final aggregation
- **Combining components**: Net deposits and active loans (variable plus stable borrows) are summed together on a daily basis for each chain and token combination
- **Currency conversion**: All token amounts are converted to USD using end-of-day price feeds, ensuring consistent timing across different tokens and chains
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation, with appropriate averaging for outstanding debt positions
- **Final calculation**: TVL equals the sum of cumulative net deposits plus total outstanding loans, expressed in USD after decimal correction and price conversion

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

ZeroLendZERO

Total value locked

Total value locked

Competitive landscape

Chain breakdown