Term

Total Value Locked (TVL)

The total value of assets deposited in a DeFi protocol or ecosystem.

Type:

defi

metrics

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.