DefiLlama Founder Responds to Aave TVL Controversy: Impact of Circular Borrowing Has Been Excluded
Svmuu News: DefiLlama founder 0xngmi posted on X, stating that current claims that Aave’s TVL is overvalued due to circular borrowing are inaccurate. He explained that in TVL calculations, lent assets are excluded, so circular lending does not inflate the total value locked. For example, deposited assets are included in TVL, while the corresponding borrowed portion is offset. He added that DefiLlama had previously excluded duplicate calculations resulting from Ethena-related collateral loops, and therefore considers the relevant allegations to be unfounded.
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Source:Odaily · Source Link
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