The Most Popular Metric Tracking DeFi’s Growth Is Critically Flawed, Here’s Why | Crypto Briefing

Key Takeaways

  • Total value locked is a measure of collateral deposited in a smart contract.
  • Compound has higher supply and loan originations than Aave, but total value locked gives Aave a better ranking.
  • In a few cases, like that of asset aggregators, total value locked is a direct measure of value capture.
  • One potential solution is comparing protocols on revenue, as this can be universally applied to any crypto protocol.

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