{"id":27350,"date":"2020-08-17T14:43:54","date_gmt":"2020-08-17T11:43:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=27350"},"modified":"2025-08-26T20:13:42","modified_gmt":"2025-08-26T17:13:42","slug":"expert-doubts-the-estimates-of-funds-locked-in-defi","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/expert-doubts-the-estimates-of-funds-locked-in-defi\/","title":{"rendered":"Expert doubts the estimates of funds locked in DeFi"},"content":{"rendered":"<p>The amount of funds locked in the 15 leading DeFi protocols stands at $3.5 billion, compared with more than $6 billion reported by DeFi Pulse. This conclusion was reached by Damir Bandalo, founder of the Encode Club blockchain community.<!--more--><\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">A lot of talk these days around the total value locked in DeFI.<\/p>\n<p>However all of them count the same $ many times.<\/p>\n<p>So I did my own calc to find out how much is actually locked in top 15 DeFi protocols.<\/p>\n<p>Answer: $3.5bil. (compared to $6.7bil on <a href=\"https:\/\/twitter.com\/defipulse?ref_src=twsrc%5Etfw\">@defipulse<\/a>)<\/p>\n<p>cc <a href=\"https:\/\/twitter.com\/devops199fan?ref_src=twsrc%5Etfw\">@devops199fan<\/a><\/p>\n<p>1\/n<\/p>\n<p>\u2014 Damir Bandalo (@damirbandalo) <a href=\"https:\/\/twitter.com\/damirbandalo\/status\/1295089928901140481?ref_src=twsrc%5Etfw\">August 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The analyst noted that due to the composability inherent in the DeFi space, each dollar can be counted several times.<\/p>\n<blockquote>\n<p>\u201cSuppose you deposit ETH into MakerDAO and issue DAI. You take that DAI, move it to Curve and place it in yCurve. Your dollars can actually be counted five times,\u201d he emphasised.<\/p>\n<\/blockquote>\n<p>Bandalo arrived at his estimate of funds locked in the protocols by excluding double counting of tokens.<\/p>\n<div id=\"attachment_107639\" style=\"width: 830px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-107639\" class=\"wp-image-107639 size-full\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Untitled-1-7.jpg\" alt=\"\u042d\u043a\u0441\u043f\u0435\u0440\u0442 \u043d\u0430\u0437\u0432\u0430\u043b \u043e\u0446\u0435\u043d\u043a\u0438 \u043e\u0431\u044a\u0435\u043c\u0430 \u0437\u0430\u0431\u043b\u043e\u043a\u0438\u0440\u043e\u0432\u0430\u043d\u043d\u044b\u0445 \u0432 DeFi \u0441\u0440\u0435\u0434\u0441\u0442\u0432 \u043d\u0435\u043a\u043e\u0440\u0440\u0435\u043a\u0442\u043d\u044b\u043c\u0438\" width=\"820\" height=\"282\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/Untitled-1-7.jpg 820w, https:\/\/u1f987.com\/wp-content\/uploads\/Untitled-1-7-300x103.jpg 300w, https:\/\/u1f987.com\/wp-content\/uploads\/Untitled-1-7-768x264.jpg 768w\" sizes=\"auto, (max-width: 820px) 100vw, 820px\" \/><\/p>\n<p id=\"caption-attachment-107639\" class=\"wp-caption-text\">Volume of funds locked in DeFi protocols according to DeFi Pulse.<\/p>\n<\/div>\n<p>In the course of his analysis, the analyst calculated that 3.85% of the total ETH supply is locked in DeFi protocols, while for Bitcoin this figure is only 0.18%. Of the total funds, 33% are stablecoins, 50% ETH and 10% BTC.<\/p>\n<p><strong>Update:<\/strong> Later, his arguments were rebutted by DeFi Pulse founder Scott Lewis. He emphasised that the service counts every dollar only once.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">error 2: DAI is a new asset. If you think DAI isn\u2019t a new asset, you\u2019d also have to strike basically every othe world currency who value is backed by a reserve of dollars and gold.<\/p>\n<p>error 3: DAI locked in curve, then locked in yean is NOT double counted.<a href=\"https:\/\/t.co\/y5StOVWYDu\">https:\/\/t.co\/y5StOVWYDu<\/a><\/p>\n<p>\u2014 scott lewis\ud83c\udf3e (@scott_lew_is) <a href=\"https:\/\/twitter.com\/scott_lew_is\/status\/1295100903637372935?ref_src=twsrc%5Etfw\">August 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Earlier, 32% of Blockfolio app users monitoring crypto positions admitted that <a href=\"https:\/\/u1f987.com\/en\/news\/survey-finds-a-third-of-users-do-not-understand-defi\">do not understand<\/a> the basics of DeFi.<\/p>\n<p>Follow ForkLog on <a href=\"https:\/\/twitter.com\/ForkLog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The amount of funds locked in the 15 leading DeFi protocols is $3.5 billion, compared with more than $6 billion reported by DeFi Pulse. This conclusion was reached by Damir Bandalo, founder of the Encode Club blockchain community.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,1145],"class_list":["post-27350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/27350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=27350"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/27350\/revisions"}],"predecessor-version":[{"id":27351,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/27350\/revisions\/27351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=27350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=27350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=27350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}