TVL, or total value locked, estimates the value of assets deposited in a protocol, pool, or DeFi system.
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Short definition
TVL is tVL, or total value locked, estimates the value of assets deposited in a protocol, pool, or DeFi system.
Simple explanation
TVL is often used as a rough measure of DeFi protocol size or liquidity.
Why it matters
TVL can help compare protocols, but it does not prove safety, quality, or long-term sustainability.
Example context
A lending protocol may report TVL based on the value of assets supplied by users.