Total Value Locked (TVL) is the dollar value of all assets deposited in a DeFi protocol — its pools, vaults, and lending markets combined. It's the standard headline metric for "how big is this protocol." Why it matters TVL measures trust and usage, but it's gameable: protocols bribe deposits with inflated token rewards (which evaporate), and one whale can be half the TVL. Treat TVL as a starting signal, then check *who* deposited, *what* tokens, and whether the yield paying them is sustainable. Related terms DeFi · liquidity · automated market maker
Total Value Locked (TVL) is the dollar value of all assets deposited in a DeFi protocol — its pools, vaults, and lending markets combined. It’s the standard headline metric for “how big is this protocol.”
Why it matters
TVL measures trust and usage, but it’s gameable: protocols bribe deposits with inflated token rewards (which evaporate), and one whale can be half the TVL. Treat TVL as a starting signal, then check *who* deposited, *what* tokens, and whether the yield paying them is sustainable.