DefiLlama founder 0xngmi has refuted claims that Aave's Total Value Locked (TVL) is artificially inflated due to circular lending practices. In a post on X, he clarified that TVL calculations exclude lent assets, ensuring that circular lending does not affect the reported figures. Deposited assets are included in TVL, while lent portions are offset, maintaining accuracy.
0xngmi also noted that DefiLlama had previously addressed and removed duplicate calculations related to Ethena collateral loops. He dismissed the criticisms as unfounded, emphasizing the platform's commitment to accurate TVL reporting.
DefiLlama Founder Addresses Aave TVL Inflation Claims
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