Tokenomics & On-chain

What is total value locked (TVL) in DeFi?

Total value locked (TVL) is the total dollar value of crypto assets currently deposited in a decentralized finance (DeFi) protocol or across DeFi as a whole. It is calculated by multiplying the quantity of each token held in a protocol's smart contracts by its market price, then summing them. For example, a lending protocol holding 10,000 ETH at $3,000 each shows $30 million in TVL. Analysts use TVL as a rough gauge of how much capital trusts a protocol, though it rises and falls with token prices, not just deposits.