Aave and Lido's combined total value locked (TVL) fell $1.74 billion between Oct. 27 and Nov. 3, according to DeFiLlama data. The decline spans two of the largest DeFi protocols by locked ass
Aave and Lido's combined total value locked (TVL) fell $1.74 billion between Oct. 27 and Nov. 3, according to DeFiLlama data. The decline spans two of the largest DeFi protocols by locked assets, but a drop in dollar-denominated TVL does not automatically mean users pulled funds.
DeFiLlama tracks TVL by valuing the assets deposited in a protocol at current market prices and expressing the total in U.S. dollars. The combined reading for Aave and Lido fell by approximately $1.74 billion over the Oct. 27 to Nov. 3 window. The figure covers both protocols in aggregate; the split between them is not confirmed by the available evidence.
Aave is a decentralized lending and borrowing protocol where users deposit collateral to borrow other assets. Lido is a liquid staking service, primarily for Ether, that lets depositors earn staking rewards while keeping their assets liquid through its stETH token. Both protocols hold large quantities of ETH and ETH-denominated assets, making their dollar TVL sensitive to swings in Ether's price. For related coverage, see Why Is Uniswap (UNI) Price Surging Today? Key Drivers Explained.
Lido's position in the liquid staking landscape has drawn renewed attention, with its distributed validator technology discussed as a path toward further decentralization. Aave has expanded its reach through integrations such as Bitcoin-backed lending with Circle.
TVL is a dollar-denominated figure. When the price of ETH or any other asset held inside a protocol drops, the reported TVL falls even if the number of tokens on deposit is unchanged. No withdrawal needs to occur for the metric to shrink. Context on this theme: World Data Centre Summit – Philippines 2026.
This distinction matters because a TVL drop is often reported as evidence of users exiting a protocol. That interpretation is only valid when confirmed by net withdrawal data, meaning more tokens left the contracts than entered during the same period. Price-driven moves and genuine outflows can look identical on a headline TVL chart.
Aave has faced separate scrutiny on the security side: a SlowMist alert flagged an exploit of the Aave v3 Loop Safe module for 114.09 ETH, an event unrelated to this TVL reading but illustrative of the protocol risks that can influence depositor behavior alongside price movements.
To judge whether the Oct. 27 to Nov. 3 decline represents actual capital flight, readers should compare the dollar TVL change against Ether's price move over the same period. If ETH fell by a similar percentage, the TVL drop is largely a valuation effect. If TVL fell faster than ETH, net outflows are a more likely explanation.
DeFiLlama also publishes token-denominated TVL for many protocols, which strips out price effects and shows raw deposit changes. Checking that figure alongside the dollar reading gives a clearer picture of whether users added or removed capital during the week. The same methodology applies to other large DeFi protocols whose TVL moves frequently conflate price action with deposit flows.
KEY TAKEAWAYS
The seven-day period ending Nov. 3 is now a fixed reference point. Future DeFiLlama readings that show a recovery will need to be weighed against whether asset prices also recovered, or whether fresh deposits drove the rebound.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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