TVL (Total Value Locked)
DeFi
Value locked in a protocol.
TVL measures the value of assets locked in a DeFi protocol. It is a rough proxy for usage and capital efficiency but can be gamed by incentives.
Frequently asked questions
Is TVL a good metric?
It is one signal. It can be inflated by incentives or double counted across protocols.How should I use TVL?
Compare within categories and alongside volume, fees, and active users.Why does TVL move quickly?
Token prices and incentive programs change, affecting the USD value of deposits.