Odaily Frontline｜Is it true that the total value of locked assets in DeFi has exceeded $1 billion?

This article comes fromBitcoin.com, original author: Kai Sedgwick

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The total value of assets locked in the DeFi ecosystem recently topped $1 billion, and the Ethereum community celebrated. However, some argue that the real value locked in DeFi protocols is much lower. At the same time, creeping competition from centralized lenders shows that DeFi must innovate if it is to maintain its value proposition.

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Big day for DeFiThe moment DeFi advocates had been waiting for for weeks arrived on February 6th, when the total value (TVL) of assets locked in DeFi protocols surpassed $1 billion. As of press time, this figure has decreased slightly and currently stands at $997 million.DefiPulse.com data

Many decentralized lending, derivatives and trading protocols get their liquidity from Maker's SAI and DAI stablecoins, which in turn get their liquidity from Ethereum. in celebration of this achievementblog postIn, Defi Pulse announced that “$1 billion marks a major milestone for DeFi to celebrate. It demonstrates the progress we have made in realizing our vision of the community’s decentralized finance and the future of the world at large.” A year ago, the valuation of the DeFi market Just under $280 million. Today, borrowing alone accounts for $766.5 million.

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Centralized Lenders Are Grabbing DeFi Market Share

Just as centralized exchanges have commercialized staking, crowding out dedicated masternodes and staking services, a similar situation may arise for crypto lending. Lending is at the heart of decentralized finance, accounting for five of the top ten DApps (Maker, Compound, Instadapp, Dydx, and Bzx). However, centralized finance (CeFi) lenders are making inroads into this lucrative vertical.This week, Binance announcedThe thirteenth issue of "Binance Treasure"

Is DeFi's $1 billion TLV its first of many milestones, or will observers see this moment as its peak, the high before value flows into its centralized crypto rivals? When it comes to the $1 billion figure, not everyone is convinced that the numbers add up...

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Disagreement about the $1 billion figure

Defi Pulse monitors the underlying smart contracts of every protocol on the Ethereum blockchain, and the website says, “Every hour, we refresh the charts to extract the total balance of ETH and ERC20 tokens held by these smart contracts. Total value locked TVL (USD) is calculated by multiplying these balances by their USD price."Brad MillsThis is a method that mimics how the market capitalization of cryptocurrencies is calculated. However, market capitalization has long been considered an imperfect calculation, and the same charge applies to DeFi. bitcoin enthusiast

Asked on Twitter, "What percentage of the '$1 billion' that is 'locked' is: 1. made up of ICO tokens (low liquidity?); Founders confused? Looks like market cap manipulation to me. $1 billion is a bold statement.”Cryptocurrency Law CommentatorPreston Byrne says

, “$1 billion is not locked in DeFi. If Dai’s backers are to be believed, at least $300 million of that is ETH that early investors didn’t want to sell because they wouldn’t get a tax hit if they didn’t sell. That’s saying’ There's a difference between saying 'Jeff Bezos is worth $100 billion' and saying 'Jeff Bezos has $100 billion in cash'. DeFi doesn't have that much locked up, it has ETH that early holders don't want to sell and that value is appreciating in a nascent bull market. "Nathaniel WhittemoreOthers, however, dispute this, ethereum advocate