In the rapidly evolving world of decentralized finance, where real-world assets (RWAs) are increasingly tokenized on blockchains, transparency has become a battleground. DeFiLlama, a prominent analytics platform tracking DeFi metrics, has recently ignited controversy by accusing certain companies of inflating their RWA figures. According to a report from Bitcoin.com News, DeFiLlama’s pseudonymous founder, 0xngmi, highlighted how some firms are “replicating database movements onto blockchains” to create the illusion of substantial on-chain activity, thereby misleading investors and users about the true scale of their operations.

This criticism centers on the metric known as Total Value Locked (TVL), a key indicator of a protocol’s health and adoption in DeFi. DeFiLlama argues that many RWA projects report TVL figures that include off-chain or fiat-based activities, which do not accurately reflect blockchain-native transactions. For instance, in a detailed thread on X (formerly Twitter), 0xngmi pointed out discrepancies where claimed volumes vastly exceed verifiable on-chain data, urging the industry to adopt standardized methodologies to prevent such distortions.

Unpacking the Figure Controversy and Its Implications for RWA Integrity

The spotlight has particularly fallen on Figure, a fintech firm specializing in tokenized RWAs. DeFiLlama’s analysis, as detailed in a post on BitcoinEthereumNews, questions Figure’s assertion of $12 billion in TVL. Upon closer examination, DeFiLlama found only about $5 million in Bitcoin and $4 million in Ethereum actually locked on-chain, with daily Bitcoin volumes as low as $2,000. This stark contrast suggests that much of Figure’s reported activity may stem from traditional fiat lending rather than genuine blockchain interactions, raising red flags about potential overstatement.

Adding fuel to the fire are allegations involving Figure’s co-founder. Reports from Coindoo indicate that DeFiLlama encountered resistance during its due diligence, including claims of defamation threats from Figure to suppress scrutiny. Posts on X from users like TomiEyro and Solix Trading echo this sentiment, describing how Figure allegedly blocked audits and promoted inflated metrics, with one post noting that the firm’s YLDS stablecoin is backed by a mere $20 million in circulation—far below the touted billions.

Broader Industry Repercussions and Calls for Standardized Metrics

This episode is not isolated; it reflects a growing concern in the RWA sector, which has ballooned to nearly $13 billion in total value according to DeFiLlama’s own dashboard. A Medium article from Real Finance, published earlier in 2024 and accessible via Medium, critiques the applicability of TVL to RWAs, arguing that the metric, originally designed for pure DeFi protocols, fails to capture the nuances of tokenized assets like real estate or bonds. It proposes improvements such as incorporating inflow data and APY medians to provide a more holistic view.

Industry insiders are now debating the need for regulatory oversight or self-policing mechanisms. As noted in a BitcoinEthereumNews piece, DeFiLlama’s revelations have sparked suspicions of fraud, prompting anonymous reporting tools on the platform for founders to flag competitors’ misleading data. This tool, announced by 0xngmi on X in April 2025, allows manual reviews of submissions, emphasizing DeFiLlama’s commitment to accuracy amid a surge in RWA projects.

Lessons from Past DeFi Metrics Debates and Future Pathways

Historical context from DeFiLlama’s own reports, such as its 2022 Year in Review shared on X, shows how metrics like TVL have evolved from simple trackers to comprehensive indicators including fees and revenue. Yet, as RWAs bridge traditional finance and crypto, inconsistencies persist. A separate but related incident involving OpenEden, covered in Bitget News from November 2024, saw its TVL drop by $30 million following co-founder misconduct allegations, underscoring how personal controversies can amplify metric scrutiny.

For investors and developers, this underscores the importance of cross-verifying data sources. Platforms like Plume Network, which hit $110 million in deposits as reported by DL News in July 2025, demonstrate successful RWA tokenization when backed by transparent metrics. As the sector matures, DeFiLlama’s push for integrity could lead to more robust standards, ensuring that tokenized assets deliver on their promise without the shadow of inflated claims. Ultimately, these developments may foster greater trust, drawing institutional capital into a market projected to tokenize trillions in real-world value.