DefiLlama Founder Clarifies Aave TVL Controversy

KuCoinFlash

Release Time: 04/20/2026 12:26:56

AAVE

$96.2561.09%

Summary

DefiLlama founder 0xngmi addressed recent on-chain news regarding Aave’s TVL, dismissing claims of inflated figures due to recursive lending. He clarified that borrowed assets are not included in TVL, so such activity does not impact the metric. 0xngmi also noted that duplicate calculations in Ethena-related collateral cycles had already been removed, calling the criticism unfounded. This update comes amid growing news surrounding real-world assets (RWA) in the DeFi space.

Odaily Planet Daily report: 0xngmi, founder of DefiLlama, posted on X that the current claims suggesting Aave's TVL is inflated due to circular lending are inaccurate.

It explained that lent assets are excluded from TVL calculations, so circular lending does not inflate total value locked. For example, deposited assets are counted in TVL, while the corresponding lent portion is offset. It also added that DefiLlama had previously removed duplicate calculations arising from Ethena-related collateral loops, asserting that the related concerns are unfounded.

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