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Recently, TK, the co-founder of @Theo_Network, mentioned some key points during an interview that have spread through the community.
What he highlighted is that many projects are obsessed with increasing their TVL (Total Value Locked), which has become one of the most important metrics. However, he emphasized that rather than the TVL itself, it is more crucial to understand how that TVL capital is utilized.
In particular, with the lending market being established, if funds are locked in TVL, it is essential to know how much of that capital has been lent out and utilized, and based on that, how much actual business model (BM) funding is being generated.
Hearing this, it seems that what is becoming increasingly important is not just the numbers, but the concentration of how funds are being used and managed to create more money.
This feels similar to the competition we once saw in computer CPUs. There was a time when the number of CPUs or various speed and power indicators like MHz were considered important, or when tech ecosystems were obsessed with maximizing camera resolution in megapixels (MP). However, at some point, it became clear that it wasn't just about the MP of the camera, but also how good the software that adjusts the camera's MP and lens is. Just like how, even though the iPhone's camera wasn't the highest in pixels, people ultimately sought out the iPhone camera, we are starting to see a similar trend.
It seems we are entering an era where the scale and size of the business that can be generated from TVL, rather than the TVL itself, is becoming important.

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