Sovryn, the Bitcoin money market protocol built on the Bitcoin-based smart contract platform RSK, seems to have risen in the rankings of decentralized finance recently.

On June 9, Bitcoin commentator Anthony Pompliano shared data from DeFi Llama, a decentralized financial data aggregator, to his 1 million followers. He pointed out that the total locked-up value (TVL) of the protocol was $1.95 billion, ranking it in the DeFi field. The 14th place surpassed Uniswap v3.

Sovryn’s TVL is higher than Uniswap V3.

I have been telling everyone that in terms of market pricing, the DeFi infrastructure on Bitcoin has the highest probability of being mispriced.

as you wish

— Pomp (@APompliano) June 9, 2021

Pomp and many of his fans point out dissatisfiedly that platforms that focus on Ethereum, such as DeFi Pulse, do not list Bitcoin DeFi projects like Sovryn and Stacks. The crypto celebrity said:

“One will appear in the top 15 of the TVL rankings, and the other will appear in the top 25. Why don’t they appear in the rankings?”

Pomp’s post on Sovryn was criticized by supporters of the Ethereum ecosystem, who refuted Sovryn’s view that Sovryn had accumulated a 10-figure TVL. “ChainLinkGod” implies that the pledged governance token may cause the estimated TVL to be exaggerated.

How to determine the market price of the pledged SOV? I can’t find any information about SOV tokens

— ChainLinkGod.eth 2.0 (@ChainLinkGod) June 9, 2021

Since Pomp’s post, DeFi Llama has adjusted Sovryn’s data and now shows that the project’s TVL is only $52 million. The updated data is now consistent with the TVL provided by Sovryn Wiki.

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In a statement on June 10, DeFi Llama confirmed that its previously estimated TVL of nearly $2 billion was indeed the result of including the market value of pledged assets. The data aggregator added that it will soon publish an update on its website, allowing users to choose whether to include pledged assets in the TVL data.

Regarding the recent Sovryn controversy:

1. We removed the pledged assets from TVL

2. We will post an update on the website, allowing anyone to choose whether they want TVL to include pledged assets

3. We will re-add Sovryn after the update

— (@DefiLlama) June 9, 2021

Since the popularity of decentralized finance in 2020, TVL has become the main indicator of the success of an agreement.

However, many analysts believe that TVL is relatively simplistic and should not be regarded as the only standard for measuring the progress of DeFi projects.

CoinGecko co-founder Bobby Ong said in an interview with Cointelegraph that, just as market capitalization has become the main measure of the success of tokens, TVL is becoming more and more popular due to its simplicity. Bobby Ong emphasized that TVL is “all DeFi The agreement establishes the convenience of a number for comparison.

He added: “It is not a perfect measurement standard, but it is the most direct measurement standard. People can use it as a benchmark to understand and use.”

Ong believes that total trading volume should be the main indicator of the success of decentralized exchanges (DEX), and pointed out that trading volume “drives agreement revenue.” For the same reason, he believes that borrowing volume should be the main indicator of the success of money market agreements.

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Ong also suggested that analysts should pay more attention to combining TVL with other key indicators to illustrate the capital efficiency of liquidity locked in a particular agreement:

“For a DEX, looking at transaction volume/TVL can measure how to effectively use liquidity to drive the agreement and liquidity provider fees.”

Ong also believes that dividing the TVL of a project by its market value or fully diluted valuation (FDV) is useful for comparing DeFi agreements in the same field.