Aave founder Stani: The valuation of DeFi lending protocols should not use TVL as the primary metric
According to ChainCatcher, Aave founder and CEO Stani Kulechov posted on Twitter that DeFi lending protocol valuations should not primarily reference TVL, as it measures net collateral rather than lending activity. Comparing end-of-2025 data: Aave had a supply scale of around $52 billion, active loans of about $22 billion, lending interest flows exceeding $700 million, and DAO retention of roughly $150 million. SoFi had deposits of approximately $37.5 billion, loan book of about $38 billion, loan income around $1.8 billion, and net profit of about $481 million.
Stani stated that in traditional finance, deposits are liabilities or capital costs, loans are interest-bearing assets, and lenders usually assess based on loan book, interest income, interest spread, and asset growth. However, the DeFi market mainly focuses on TVL and DAO retained fees. He believes Aave, under a traditional financial accounting framework, is closer to over $700 million in lending business rather than a $150 million revenue protocol. TVL is not the income foundation for lending protocols; loan books and interest flow are the core.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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