Impact of the Ethereum Merge on vTVL–TVL discrepancies

Ascertain whether, and to what extent, the Ethereum Merge (September 2022) contributed to the observed divergence between verifiable Total Value Locked (vTVL) computed from on-chain data and TVL values published via DeFiLlama APIs after late 2022, by analyzing measurement changes, protocol coverage, pricing, and version reporting around the Merge.

Background

In the case study, the authors reconstruct TVL (vTVL) using only on-chain data and compare against DeFiLlama API values. They observe that on-chain and off-chain sources correspond only until the end of 2022, with multiple potential explanations, including missing on-chain capture for some protocols, inconsistent version separation in APIs, and inclusion of related projects.

Because the observed change coincides with the Ethereum Merge, the authors note an unresolved question regarding its possible role in the divergence. Establishing whether the Merge affected data availability, computation methods, or API reporting would clarify the source of discrepancies and improve TVL/vTVL comparability.

References

Finally, as the change also corresponds with the Merge (which took place on September 2022), we cannot exclude that also this event has a role. This aspect needs further investigation.

— Towards Verifiability of Total Value Locked (TVL) in Decentralized Finance  (2505.14565 - Saggese et al., 20 May 2025) in Appendix: TVL reconstruction from on-chain data