L'INFORMATEUR CRYPTOHome › Glossary › TVL (Total Value Locked)
TVL (Total Value Locked): definition
TVL is the total value of crypto deposited in a DeFi protocol.
Definition
TVL adds up users' deposits in a protocol (lending, liquidity, staking). It measures the trust placed in the protocol.
Its limits
TVL rises mechanically with the price of the deposited cryptos, and can be inflated by temporary rewards. Revenue and fees paid by users better show whether the protocol is actually used.
Frequently asked questions
Does high TVL guarantee security?
No: large protocols have been hacked before. TVL measures usage, not code quality or risk management.