“Actual” Total Value Locked in DeFi is Only About 50% of Reported Value: Analyst
Reportedly, the recursive compounding of collateral on different DeFi project using the same initial capital tends to inflate the value locked in DeFi by almost 50%. Data analytics websites reporting the ‘total value locked’ in DeFi, determine the value by analysing individual projects. However, the ecosystem has remarkable interoperability. DAI loaned in one project is
Reportedly, the recursive compounding of collateral on different DeFi project using the same initial capital tends to inflate the value locked in DeFi by almost 50%. Data analytics websites reporting the ‘total value locked’ in DeFi, determine the value by analysing individual projects. However, the ecosystem has remarkable interoperability. DAI loaned in one project is