Within the quickly evolving world of decentralized finance, the place real-world belongings (RWAs) are more and more tokenized on blockchains, transparency has turn into a battleground. DeFiLlama, a distinguished analytics platform monitoring DeFi metrics, has not too long ago ignited controversy by accusing sure corporations of inflating their RWA figures. In response to a report from Bitcoin.com News, DeFiLlama’s pseudonymous founder, 0xngmi, highlighted how some companies are “replicating database actions onto blockchains” to create the phantasm of substantial on-chain exercise, thereby deceptive traders and customers in regards to the true scale of their operations.
This criticism facilities on the metric generally known as Whole Worth Locked (TVL), a key indicator of a protocol’s well being and adoption in DeFi. DeFiLlama argues that many RWA tasks report TVL figures that embody off-chain or fiat-based actions, which don’t precisely replicate blockchain-native transactions. For example, in an in depth thread on X (previously Twitter), 0xngmi identified discrepancies the place claimed volumes vastly exceed verifiable on-chain information, urging the business to undertake standardized methodologies to forestall such distortions.
Unpacking the Figure Controversy and Its Implications for RWA Integrity
The highlight has significantly fallen on Figure, a fintech agency specializing in tokenized RWAs. DeFiLlama’s evaluation, as detailed in a publish on BitcoinEthereumNews, questions Figure’s assertion of $12 billion in TVL. Upon nearer examination, DeFiLlama discovered solely about $5 million in Bitcoin and $4 million in Ethereum truly locked on-chain, with every day Bitcoin volumes as little as $2,000. This stark distinction means that a lot of Figure’s reported exercise could stem from conventional fiat lending slightly than real blockchain interactions, elevating crimson flags about potential overstatement.
Including gasoline to the hearth are allegations involving Figure’s co-founder. Reviews from Coindoo point out that DeFiLlama encountered resistance throughout its due diligence, together with claims of defamation threats from Figure to suppress scrutiny. Posts on X from customers like TomiEyro and Solix Buying and selling echo this sentiment, describing how Figure allegedly blocked audits and promoted inflated metrics, with one publish noting that the agency’s YLDS stablecoin is backed by a mere $20 million in circulation—far under the touted billions.
Broader Business Repercussions and Requires Standardized Metrics
This episode isn’t remoted; it displays a rising concern within the RWA sector, which has ballooned to almost $13 billion in whole worth in response to DeFiLlama’s personal dashboard. A Medium article from Actual Finance, printed earlier in 2024 and accessible by way of Medium, critiques the applicability of TVL to RWAs, arguing that the metric, initially designed for pure DeFi protocols, fails to seize the nuances of tokenized belongings like actual property or bonds. It proposes enhancements equivalent to incorporating influx information and APY medians to offer a extra holistic view.
Business insiders at the moment are debating the necessity for regulatory oversight or self-policing mechanisms. As famous in a BitcoinEthereumNews piece, DeFiLlama’s revelations have sparked suspicions of fraud, prompting nameless reporting instruments on the platform for founders to flag opponents’ deceptive information. This device, introduced by 0xngmi on X in April 2025, permits guide evaluations of submissions, emphasizing DeFiLlama’s dedication to accuracy amid a surge in RWA tasks.
Classes from Previous DeFi Metrics Debates and Future Pathways
Historic context from DeFiLlama’s personal stories, equivalent to its 2022 12 months in Evaluation shared on X, exhibits how metrics like TVL have advanced from easy trackers to complete indicators together with charges and income. But, as RWAs bridge conventional finance and crypto, inconsistencies persist. A separate however associated incident involving OpenEden, coated in Bitget News from November 2024, noticed its TVL drop by $30 million following co-founder misconduct allegations, underscoring how private controversies can amplify metric scrutiny.
For traders and builders, this underscores the significance of cross-verifying information sources. Platforms like Plume Community, which hit $110 million in deposits as reported by DL News in July 2025, reveal profitable RWA tokenization when backed by clear metrics. Because the sector matures, DeFiLlama’s push for integrity might result in extra sturdy requirements, making certain that tokenized belongings ship on their promise with out the shadow of inflated claims. Finally, these developments could foster higher belief, drawing institutional capital right into a market projected to tokenize trillions in real-world worth.
