The total cost of blocked (TVL) is a widely used metric to track popularity, introduction and general condition of projects on decentralized finance (Defi). However, this is the most accurate reflection of the true value of the chain? David Silverman, SVP initiatives in strategic products in Polygon Labs, believes that TVL is useful for obtaining headings, but does not give a complete picture.
In an exclusive interview, Beincrypto, Silverman explained why TVL has its own restrictions. He also revealed how the TVL (CAT) aligned network can provide a more significant measure for a crypto emission.
Why tvl fails as a key metric Defi
Silverman admitted that TVL provides a general review of assets held within the protocol or chain. Nevertheless, he argued that his importance and accuracy remain controversial.
“TVL mainly serves as a tool for making headlines and providing a general cost of cost contained on the Defi or a chain platform, and most people do not know what this indicator entails. Having said that Ethereum has a TVL of $ 44.38 billion.
According to Defillama, in April 2025, Ethereum (ETH) evaluates the highest among all chains in terms of TVL, dominating more than half the market. Meanwhile, TVL Polygon (Pol) is $ 760.9 million. USA, which makes it the 13th in size of the network.
Although over time, achievements in the tracking of TVL were achieved, Silverman believes that several problems are preserved. Thus, he advocated what he calls the aligned TVL chain.
According to Silverman, the name itself clearly distinguishes it from the traditional TVL. This indicator is focused on the active use of assets, and not on their simple presence in the chain.
“Knowing how much USDC or USDT is in a chain can create good headlines, but if these tokens simply collect dust in the wallet and do not contribute, do they really add any value to the ecosystem?” He asked.
To illustrate his point of view, he emphasized that the retention of USDT in the amount of 1 million dollars in Morpho is possibly much more useful for the chain, its users and the ecosystem. Why? Because on the platform he receives profitability and helps to expand the TVL network, expanding the loan.
“This is the main idea of the TVL, aligned by the chain, which is the total value of assets that directly support and enhance their main chain, whether in accordance with the aligned protocols,” said Silverman in Beincrypto.
In addition, according to him, the goal is to connect a cat with projects that really increase the value of their communities.
DEFI maximization: how tvl users are aligned in a chain.
The Executive Director of Polygon also outlined in general terms of TVL, aligned in the chain of advantages, brings users. He explained that the nuanced way to assess the value of the chain can help users find the best crop capabilities.
“Classes, of course, will want to promote projects that benefit them and their ecosystems, so they are more likely to promote projects with higher aligned TVL chains, which facilitates the search for highly profitable opportunities,” he said.
Silverman also emphasized that focusing on CAT can stimulate the development of more effective and convenient applications. The main chain will determine the priorities of well -integrated projects useful for its ecosystem.
“The advantages for users include things such as simpler/cheaper/faster transitions and the best Defi capabilities,” he said.
In addition, projects managed by cats can offer higher interest rates and provide more attractive experience in areas such as games and low -quality tokens (NFTS), since the developers are stimulated to improve the involvement of the ecosystem.
Advantages are not limited only by users. Rather, it can also have positive consequences for entire blockchains.
“CAT is an indicator that all chains can use and benefit from better understanding where their development efforts should be focused,” said Beincrypto Silverman.
He pointed out that landing on transactions is not always not always a stable business model for chains. According to Silverman, the main attention on the cat helps to bring long -term value to the chain and its ecosystem outside of fair income from transactions.
Meanwhile, in order to demonstrate the aligned TVL network in action, Silverman cited as an example the deployment of Ausd Ausd Agora.
“While other stables can have large volumes of TVL downtime, the issuer and one issuer benefits from this, rather than a chain, not users. With AUSD, part of the productivity obtained from reserves is emitted in a chain, since incentives that help grow protocols, rewards of active users and growing the economy of the chain, even when the assets remain inactive, ”he nominated. He highlighted.
While Silverman represents good cases for TVL aligned by a chain, the widespread acceptance of this metric remains a problem. TVL dominated the Defi space for many years, becoming the standard by which projects are measured.
The transition to a more nuanced metric, such as CAT, will require a general education and changes in how developers and users assess the value of the blockchain.
However, as the ecosystem is also the need for more accurate assessments of the health of the chain, indicators, such as CAT, can gradually gain speed, offering a more stable and significant way to measure the true effect of the chain.
