"HERE'S WHAT I GOT WRONG ABOUT TERMMAX'S $90M TVL (AND WHAT I FOUND INSTEAD)"
I used to assume that when a project's announced TVL sits far above what DeFiLlama shows, the gap is almost certainly capital parked for points farming rather than serving real borrowing demand.
But instead of stopping at TermMax's TGE announcement, I went back and checked the numbers on DeFiLlama myself. TVL there was sitting at $31.25 million, down 8.5% over the past 30 days well below the $90 million-plus figure the project had announced. Next to it was a line I almost skipped past: Active Loans, the loans actually outstanding, at $27.18 million.
At first I read the nearly $60 million gap between the two figures as proof that most of the TVL was inflated, dressed up ahead of the TGE. But once I put Active Loans next to TVL from the same source, the ratio came out to roughly 87%. I realized I'd jumped to a conclusion faster than the data warranted taking a numerator from one measurement scope and a denominator from another, then reading a story about user behavior into the mismatch.
Looking back, the real issue isn't whether the $90 million figure is genuine. It's that DeFiLlama only captures part of the system and that part is showing fairly high capital utilization, not capital sitting idle. The rest, outside the reach of any external tracker, is what's actually unverified.
I still wonder whether the TVL sitting outside DeFiLlama holds the same utilization rate after August 25, or whether that's exactly where the points-farming capital is parked.
Disclaimer: This post is based on personal analysis, research, and insights, and does not constitute investment advice.
#TermMax @TermMax $BTC $BNB
#termmax @TermMax
I used to assume that when a project's announced TVL sits far above what DeFiLlama shows, the gap is almost certainly capital parked for points farming rather than serving real borrowing demand.
But instead of stopping at TermMax's TGE announcement, I went back and checked the numbers on DeFiLlama myself. TVL there was sitting at $31.25 million, down 8.5% over the past 30 days well below the $90 million-plus figure the project had announced. Next to it was a line I almost skipped past: Active Loans, the loans actually outstanding, at $27.18 million.
At first I read the nearly $60 million gap between the two figures as proof that most of the TVL was inflated, dressed up ahead of the TGE. But once I put Active Loans next to TVL from the same source, the ratio came out to roughly 87%. I realized I'd jumped to a conclusion faster than the data warranted taking a numerator from one measurement scope and a denominator from another, then reading a story about user behavior into the mismatch.
Looking back, the real issue isn't whether the $90 million figure is genuine. It's that DeFiLlama only captures part of the system and that part is showing fairly high capital utilization, not capital sitting idle. The rest, outside the reach of any external tracker, is what's actually unverified.
I still wonder whether the TVL sitting outside DeFiLlama holds the same utilization rate after August 25, or whether that's exactly where the points-farming capital is parked.
Disclaimer: This post is based on personal analysis, research, and insights, and does not constitute investment advice.
#TermMax @TermMax $BTC $BNB
#termmax @TermMax