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TVL (Total Value Locked)
- TVL stands for “Total Value Locked” in the context of crypto and decentralized finance (DeFi). It is a metric that measures the total value of assets (cryptocurrencies, tokens, etc.) currently locked or staked in a particular DeFi protocol or platform. TVL is often used as an indicator of the overall value and adoption of a DeFi project.
- In DeFi, users often lock their assets in smart contracts to participate in various decentralized financial activities, such as lending, borrowing, liquidity provision, and yield farming. The TVL metric provides insights into the amount of capital currently participating in these decentralized financial services.