TVL (Total Value Locked)
Capital deposited in a DeFi protocol — quality matters more than the headline.
Definition
Total value locked sums assets deposited in smart contracts. Researchers discount recursive leverage, mercenary farming, and double-counted dollars when reading TVL.
Why researchers care
- Rising TVL with falling fees can mean rented capital.
- Segment TVL by durable vs incentive-driven deposits.
- Pair TVL with retention and real fee revenue.
Related terms
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