Exum
Learn
DeFi 1 min read

TVL — Total Value Locked

Also known as: Total Value Locked

USD value of assets deposited into a DeFi protocol or chain. The «size» metric of DeFi.

How it is calculated

TVL=∑pool(token amount×USD price)\text{TVL} = \sum_{\text{pool}} (\text{token amount} \times \text{USD price})

What it does not tell you

  • Sticky capital vs mercenary capital — incentives can inflate TVL temporarily.
  • Efficiency — 1BTVLgenerating1B TVL generating 1M/yr fees is worse than 100MTVLgenerating100M TVL generating 5M/yr.
  • Leverage / double counting — a single asset can show up in multiple layers (deposit → borrow → redeposit).

Always read TVL with fees, revenue and user counts beside it.

Frequently asked

Does higher TVL always mean a better protocol?
Not necessarily. TVL can be farmed with mercenary capital that flees when incentives end. Pair TVL with fees and revenue.
Where do I check TVL?
DefiLlama is the standard source. It aggregates per chain, per category, per protocol.