The TVL is known as the cumulative number that is being utilized as staking towards any certain project. The metric is shown prominently in mainstream sites like DefiPulse.com
Damir Bandalo (tweet below), an investor and code developer in the space, the TVL is roughly 50% of the total estimates being shown publicly.
Damir’s point revolves around the accuracy of the total count of TVL in the industry as a whole. He says if “you deposit ETH into @MakerDAO and mint DAI. Take the DAI and go to @CurveFinance and put it ino ycurve. Your $ can actually be counted 5 times.”
He then focuses on the fact that some DeFi tokens have usage, and thus cannot be qualified as “locked value.”
What do you think about this perspective?Discuss below.