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smolalpha
@smolalphas
TVL is a completely overinflated and unreliable valuation metric as this point. Yield miners are leveraging up as heck, borrowing more in order to mine network tokens. Once network token prices drop and yields disappear, guess what? People start taking out assets.
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SBF
@SBF_FTX
19) So that's the whole cycle. Liquidity incentives --> TLV up --> valuation up --> larger incentives --> TLV up more --> ... It's a positive feedback cycle, starting out of nothing, creating billions of volume, locked assets, and valuation.
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