📄 Piercing the Veil of TVL: DeFi Reappraised 🔍 Discover the latest insights in Total Value Locked (TVL) in #DeFi The article "Uncovering the Truth about DeFi TVL" link.medium.com/495IA6yOOLb from Yichen Luo @ucl @uclfincomp summarises the findings of his joint research with @JiahuaJavaXu & @PaoloTasca @DLT_Science @uclcs, & Yebo Feng @NTUsg who propose a pioneering enhanced measurement framework called Total Value Redeemable (TVR). Key takeaways: • #TVL can be easily manipulated and inflated through the wrapping and leveraging due to the double counting issue. • We propose a more accurate and stable metric, total value redeemable (TVR). • Current DeFi tracking websites fail to represent the actual value of DeFi accurately. • During the peak of DeFi activity on December 2, 2021, the TVL was twice the #TVR, resulting in an inflation of $139.87 billion in all blockchains including #Ethereum. • Chains with a simple token-wrapping network such as #Hedera experience less double counting under the TVL framework. A must-read for anyone involved or interested in decentralised #finance! #blockchain #crypto #FinTech @hedera @ethereum