Term
Total Value Locked (TVL)
The total value of assets deposited in a DeFi protocol or ecosystem.
Type:
defi
metrics
1
definition
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.
Example 1.1
"A DEX’s TVL surged after incentives launched, but dropped when token rewards ended—showing mercenary liquidity."
Related Terms
Liquidity
→The ease with which a crypto asset can be bought or sold without affecting the market price.
finance
trading
Stablecoin
→A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like USD.
token
defi
Market Cap
→The total value of all circulating units of a particular cryptocurrency.
finance
trading
All terms and definitions may update as the Cryptionary improves.
