DeFiLlama Clarifies Accuracy of Aave TVL Data, Emphasizes Exclusion of Circular Borrowing Interference

BroadChain has learned that at 10:30 on April 21, according to PANews, following the approximately $292 million vulnerability incident in Kelp DAO, which caused Aave's total value locked (TVL) to plummet from $26.4 billion to around $17 billion, market participants have raised doubts about the accuracy of Aave's TVL data displayed on the DeFiLlama platform, suspecting it may be inflated due to circular borrowing. In response, DeFiLlama founder 0xngmi clarified that their calculation method already deducts borrowed tokens from TVL, meaning circular borrowing does not lead to data inflation. He further explained that the platform had previously noted the potential for TVL inflation when Ethena deposits collateral into Aave and users engage in circular borrowing. To address this, a custom exception rule was established, completely removing Ethena's deposited TVL from Aave's data. 0xngmi emphasized that DeFiLlama's provided TVL data effectively eliminates the impact of circular borrowing.