🔍 TVL Scam Analysis: Fake Locked Value?
TVL (Total Value Locked) is a core indicator for measuring the capital scale of DeFi, blockchain games, and other projects, but 90% of TVL data is inflated or even completely fabricated. The real TVL data should look at the number of independent deposit addresses!
(1) Project Self-Staking (Fake Staking)
Operation Method:
The project uses its own funds (or pre-mined tokens) to deposit into the protocol, creating a false impression of "high TVL"
Disguises as "real users" through multiple addresses
Before the Luna crash, Anchor Protocol's TVL contained a large amount of UST circular borrowing
(2) Circular Borrowing
Operation Method:
User deposits Asset A → borrows Asset B → uses B as collateral to borrow A → repeats the cycle
The same funds are counted multiple times in the TVL
(3) Incentivized Farming
Operation Method:
The project offers high token rewards to attract users for short-term deposits, and after the TVL surges, quickly withdraws the funds
Typical Model: "Deposit and Mine"
💡 Retail Investor Strategy
✔ Don't just look at TVL; it must be combined with independent address numbers, protocol income, and token economics
✔ Be wary of projects with short-term TVL surges but no actual product
✔ Use on-chain tools (like Dune, Nansen) to verify data authenticity
