Sep 20, 2022 Toghrul Aliyev
The research states that the total TVL Uniswap is displaying is misleading. The official Uniswap V3 analytics page shows TVL at $10.58B, while as per DeFiLlama, the TVL is around $5B. Total Value Locked (TVL) is the total value of cryptocurrency locked by users in a smart contract. It allows users to assess the protocol’s health and measure its growth.
This assertion is also proven by discrepancies in Uniswap's USDC/ETH pool TVL. At the time of publication, USDC/ETH liquidity pool has a TVL of $320 million as per Uniswap, while Etherscan, Ethereum’s blockchain explorer, shows $175.5 million. The token balances differ too - Uniswap V3 reports 152.58 million USDC and 124,520 ETH, while the contract reports 60.26 million USDC and 85,260 ETH.
Uniswap uses the decentralized indexing service The Graph to make the analytics page available by adding a code (subgraph) for specific blockchain data. The code is publicly available. Vakhmyanin found a bug in it that doesn’t account for fees. Uniswap pools have a 0.01% to 1% fee on every swap that is deducted from traded assets and accrued to liquidity providers. However, the code calculates the figures as if no fees were ever accrued or collected.
The bug is not news to the developer community or to the DEX team. There are several bug reports on GitHub about the incorrect data showing up on the Uniswap dashboard, including a November 2021 report from a developer, Ian Lapham who noticed the TVL bug first. The reports, however, were left unresolved. DeFi Teller contacted Uniswap on their official Discord server, but they didn’t provide any comment on the matter.