DefiLlama Founder Responds to Aave TVL Controversy: Impact of Circular Lending Has Been Excluded

Odaily News DefiLlama founder 0xngmi posted on the X platform, stating that the current claim about Aave's TVL being overestimated due to circular lending is inaccurate.

He explained that in TVL statistics, lent assets are excluded, so circular lending does not inflate the total value locked. For example, deposited assets are counted in TVL, while the corresponding borrowed portion is offset. He further added that DefiLlama has already excluded double-counting caused by collateral cycles related to Ethena, believing the related criticism lacks basis.