A lot of talk these days around the total value locked in DeFI.

However all of them count the same $ many times.

So I did my own calc to find out how much is actually locked in top 15 DeFi protocols.

Answer: $3.5bil. (compared to $6.7bil on @defipulse)

cc @devops199fan

1/n

As we know DeFi is all about composability but that makes it hard to accurately count how much money is truly locked in the system.

It gets very easy to count the same $ multiple times. Let me give an example.

Let's say you deposit ETH into @MakerDAO and mint DAI. Take that DAI and go to @CurveFinance and put it into ycurve. Your $ can actually be counted 5 times.

First when your ETH goes into Maker. Then when the DAI goes into ycurve. That's obvious however there is more.

When it goes into ycurve it's using ytokens a yield switching abstraction on top of stablecoins from @iearnfinance That's 3.

Currently ytokens don't really switch yield it deposits it into @AaveAave so that's 4.

Now if you put that ycrv into @UniswapProtocol that's 5

Second I wanted to remove all DeFi tokens which have value because the protocol has usage. I think that is value creation not value locked.

Example here is @synthetix_io. There is a lot of value created but it's not accurate to count both the synthetic tokens and SNX.

The protocols I included in this calculations are: @MakerDAO , @AaveAave, @CurveFinance , @compoundfinance, @synthetixio , @iearnfinance , @WrappedBTC , @BalancerLabs , @Instadapp , @UniswapProtocol , @renprotocol , @FlexaHQ , @NexusMutual , @mstable , @dydxprotocol

A couple of interesting facts I discovered during the process.

Only 3.85% of ETH & 0.18% of BTC is locked in DeFi. A lot of room to grow.

By contrast 29% of USDC is locked and 62% of TUSD. (which actually has very little adoption outside the ycrv product)

Stablecoins are 33% of value locked, ETH is 50%, BTC is 10%. Rest of ERC-20 ecosystem is still left behind.

I think there is a market opportunity to engage those ecosystems more. Something like the experiment @YamFinance did or a lending protocol for the long tail like @EulerHq