TECHNICAL CONCEPTS
TVL (Total Value Locked)
Definition
Total Value Locked (TVL) measures the total amount of assets deposited and locked in a DeFi protocol or across the entire DeFi ecosystem. It's a key metric for assessing protocol adoption and security.
Example
Example
If Uniswap has $5 billion TVL, it means $5 billion worth of crypto assets are currently locked in Uniswap's liquidity pools.
Risks to Consider
Risks
- TVL manipulation
- Capital flight
- Protocol risk concentration
