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![BGLabs_ Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1851251006769917952.png) Beyond Gaming (BG Chain) [@BGLabs_](/creator/twitter/BGLabs_) on x 31.2K followers
Created: 2025-07-19 19:00:01 UTC

📊 “Is TVL Really Reliable? How to Judge Whether a DeFi Project Is 'Healthy'”
— High TVL ≠ Real Demand. Don’t Be Fooled by Surface-Level Numbers

In the DeFi world, TVL (Total Value Locked) is often used to measure a protocol’s “scale,”
but high TVL ≠ protocol security, nor does it equal real value.

🧠 Why TVL shouldn’t be the only metric?

Many projects attract capital with short-term high APRs,
causing TVL to spike rapidly — but with little long-term user stickiness or real usage demand.

Much of the capital comes from “liquidity farming” or “airdrop hunting,”
which can leave at any time — with no structural loyalty to the protocol.

📍 More reliable evaluation metrics:

1️⃣ User Activity: Is it consistently growing? Are there real DAUs/MAUs?
2️⃣ Interaction Frequency: Is the protocol actually being used? Is there diverse on-chain interaction?
3️⃣ Asset Distribution: Is the capital highly concentrated in a few whale wallets?
4️⃣ Revenue Model: Is there a stable, sustainable fee-based income mechanism?

From BE Chain’s perspective, a truly healthy on-chain system
is not built by capital stacking numbers — but by structure-driven collaborative behavior.

📌 A verifiable mechanism design is far more important than a “pretty TVL figure.”

#DeFiKnowledge #TVLMisconception #OnchainHealthCheck #RealUsageMatters #StructureFirst #Web3Education #BEChainStructuralModel


XX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1946646222384582757/c:line.svg)

**Related Topics**
[protocol](/topic/protocol)
[tvl](/topic/tvl)
[gaming](/topic/gaming)

[Post Link](https://x.com/BGLabs_/status/1946646222384582757)

[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]

BGLabs_ Avatar Beyond Gaming (BG Chain) @BGLabs_ on x 31.2K followers Created: 2025-07-19 19:00:01 UTC

📊 “Is TVL Really Reliable? How to Judge Whether a DeFi Project Is 'Healthy'” — High TVL ≠ Real Demand. Don’t Be Fooled by Surface-Level Numbers

In the DeFi world, TVL (Total Value Locked) is often used to measure a protocol’s “scale,” but high TVL ≠ protocol security, nor does it equal real value.

🧠 Why TVL shouldn’t be the only metric?

Many projects attract capital with short-term high APRs, causing TVL to spike rapidly — but with little long-term user stickiness or real usage demand.

Much of the capital comes from “liquidity farming” or “airdrop hunting,” which can leave at any time — with no structural loyalty to the protocol.

📍 More reliable evaluation metrics:

1️⃣ User Activity: Is it consistently growing? Are there real DAUs/MAUs? 2️⃣ Interaction Frequency: Is the protocol actually being used? Is there diverse on-chain interaction? 3️⃣ Asset Distribution: Is the capital highly concentrated in a few whale wallets? 4️⃣ Revenue Model: Is there a stable, sustainable fee-based income mechanism?

From BE Chain’s perspective, a truly healthy on-chain system is not built by capital stacking numbers — but by structure-driven collaborative behavior.

📌 A verifiable mechanism design is far more important than a “pretty TVL figure.”

#DeFiKnowledge #TVLMisconception #OnchainHealthCheck #RealUsageMatters #StructureFirst #Web3Education #BEChainStructuralModel

XX engagements

Engagements Line Chart

Related Topics protocol tvl gaming

Post Link

post/tweet::1946646222384582757
/post/tweet::1946646222384582757