DeFi

Total value locked (TVL)

The value of assets deposited in a protocol.

What it means

TVL is often used to measure DeFi adoption, collateral, or liquidity supplied to a system.

Why it matters

TVL can be inflated by incentives, recursive deposits, volatile token prices, or borrowed assets.

Same category

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DeFi

Liquidity pool

A smart contract holding assets used for decentralized trading.

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DeFi

Impermanent loss

The relative loss liquidity providers can face when paired assets move.

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DeFi

Real yield

Yield supported by economic activity rather than only token emissions.

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