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Crypto statistics page DeFiLlama will change the way key value (TVL) is calculated in protocols to reflect more realistically.
On the evening of August 5, DeFiLlama announced on Twitter that it would automatically turn off the double count function of the DeFi protocols. This is the move made by this information site after the article “unmasked” the developer Saber on Solana.
As reported by CHK, CoinDesk claims to have found evidence that Ian Macalinao, the developer behind the AMM Saber protocol on Solana, is also the same person who built 11 other projects in this ecosystem using other anonymous identities. The purpose of Macalinao is both to link the products together into a closed loop, and to inflate the TVL value of these projects in particular and Solana in general.
Ian Macalinao claims that for every 1 USD deposited into Saber, the amount after rotating in the group of projects above will be turned into 6 USD. At the peak, only 2 projects of Saber developer, Saber and Sunny themselves, contributed to $ 7.5 billion out of Solana’s total $ 10.5 billion TVL.
‘s discovery CoinDesk has created a hot topic of discussion in the crypto community, with many arguing that Ian Macalinao’s actions are wrong to hide his identity, but also admit that the DeFi sector is too dependent on humans. TVL number to “pink” each project.
Total Value Locked (TVL) is a term that refers to the value of assets being locked in each cryptocurrency project or an entire ecosystem. It is used to compare DeFi or blockchain protocols with each other to see where the money is focusing, as well as show the popularity of the project. However, there is a problem that a coin that moves back and forth between protocols in an ecosystem can be counted over and over again, creating a “double count”. This happens on most of the protocols in the ecosystems like Ethereum, Solana, Avalanche, Polygon, etc.
Following the change, the TVL metrics of protocols and blockchains on DeFi Llama have decreased slightly. Accordingly, the current TVL of the entire crypto industry before removing the double count is 90.6 billion USD, after the update, it is only 69.5 billion USD. This shows that as much as 34.3% of TVL comes from a coin that is counted up to 2 times when moved between different protocols.
Given the latest news regarding saber, we’ve set the default value of our double-count toggle to off
This removes double counting among protocols, previously it was optional on defillama but from today we’ve changed it
— DefiLlama.com (@DefiLlama) August 4, 2022
DeFiLlama also said that from now on it will default to double count to represent the TVL picture more realistically.
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