The total value of assets deposited in a DeFi protocol or ecosystem.
TVL measures assets locked in smart contracts (e.g., lending, DEXs). It is useful for gauging adoption but can be inflated by double-counting, leverage, or price swings.
"A DEX’s TVL surged after incentives launched, but dropped when token rewards ended—showing mercenary liquidity."
All terms and definitions may update as the Cryptionary improves.