TVL is the crypto version of GMV, the favorite among seller decks, but real business people should pay less attention.

1/6
I strongly agree with Stani: DeFi lending shouldn't mainly focus on TVL.

Aave's story isn't about $52B supplied, but about $22B active loan book.

2/6
TVL essentially represents parked collateral.

It can indicate trust, brand, risk appetite, but can't directly reflect the quality of the lending business.

3/6
What lending protocols should really look at are three things:

1. originations
2. utilization
3. interest spread

This is the standard for comparing with SoFi / banks.

4/6
The biggest issue with GMV is the same.

It looks huge, but doesn't tell you the take rate, repurchase rate, bad debt, capital costs, or who actually makes money in the end.

TVL is the same; money just sitting there doesn't mean the system is generating profit.

5/6
If DeFi wants to reprice, it can't just say "I have locked this much."

It needs to clarify: who is borrowing, why they are borrowing, for how long, who gets the interest spread, and how bad debts are handled.

6/6
The market should reprice protocols that have experienced a bear market and can still continuously generate a real loan book.

#Aave's protocol true value isn't another TVL leaderboard, but a TradFi lending book.