In the decentralized finance (DeFi) space, Total Value Locked (TVL) is not only a key metric for measuring the scale of protocols but also a symbol of user trust. However, the recent debate between Figure and DefiLlama over $12 billion in RWA (Real World Asset) data has plunged the credibility of this data into crisis.

On September 10, Figure co-founder Mike Cagney publicly accused DefiLlama on platform X of refusing to display Figure’s TVL on the Provenance blockchain due to “insufficient social media followers.” He insisted that the company’s Home Equity Line of Credit (HELOC) products were already listed on CoinGecko and criticized DefiLlama’s data review process as opaque. This statement sparked widespread discussion, with public opinion initially leaning toward Figure.

However, on September 13, DefiLlama co-founder 0xngmi published a detailed article titled “The Problem in RWA Metrics,” pointing out major issues with Figure’s claimed $12 billion in assets: on-chain verifiable assets amounted to only a few million dollars, far lower than the official data; the total supply of YLDS, a stablecoin issued by Figure, was insufficient to support such a large transaction volume; a significant number of transfers were not initiated by holders themselves but were suspected to be “database mappings”; more seriously, most loan and repayment processes remained within the fiat system, leaving almost no trace on the blockchain.

These findings quickly shifted public opinion. On-chain analyst ZachXBT stated bluntly that Figure was attempting to pressure others with unverifiable data, while Coinbase board member Conor Grogan criticized some institutions for speaking on Figure’s behalf without independent verification, severely damaging the industry’s credibility. Meanwhile, some suggested that DefiLlama introduce an “Active TVL” metric to measure the actual liquidity of funds and avoid a “false boom.”

At its core, this controversy is a clash between on-chain fundamentalism and off-chain mapping logic. DefiLlama insists that all data must be verifiable on-chain, while Figure’s model relies more on the traditional financial system, with on-chain components resembling backend records. This means that without on-chain proof, the so-called $12 billion claim would struggle to gain traction in the DeFi community.

Trust is the most valuable asset in the blockchain world. If the industry fails to establish unified verification standards, virtualized TVL will continue to inflate, becoming a hidden risk to future market confidence. The conflict between Figure and DefiLlama may have only revealed the tip of the iceberg.