DefiLlama founder responds to Aave TVL controversy: cyclical lending impact has been excluded

DefiLlama founder 0xngmi posted on the X platform stating that the current claims about Aave's TVL being overestimated due to circular borrowing are inaccurate.

He explained that in the TVL statistics, borrowed assets are excluded, so circular borrowing does not inflate the total locked value. For example, deposited assets count towards TVL, while the corresponding borrowed portion is offset. He also added that DefiLlama had previously removed duplicate calculations caused by collateral loops related to Ethena, believing that the related doubts are unfounded.