DefiLlama Founder Clarifies Misconceptions on Aave TVL

DefiLlama founder 0xngmi has addressed claims regarding the overestimation of Aave's Total Value Locked (TVL) due to circular lending. According to Odaily, 0xngmi stated on the X platform that these assertions are inaccurate. He explained that in TVL calculations, lent assets are excluded, meaning circular lending does not inflate the total locked value. For instance, deposited assets are included in TVL, while the corresponding lent portion is offset. He further noted that DefiLlama has already removed duplicate calculations caused by Ethena-related collateral cycles, suggesting that the concerns lack foundation.