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Explain the Concept of ‘Total Value Locked’ (TVL) in DeFi

The total value of assets locked in a DeFi protocol's smart contracts, indicating its health, liquidity, and user adoption.
Greeks.Live07.11.25

Explain the Concept of ‘Total Value Locked’ (TVL) in DeFi.

Total Value Locked (TVL) is a metric that represents the total amount of assets (in USD or other currency) currently being held or 'locked' in a decentralized finance protocol's smart contracts. It is a key indicator of the protocol's health, utility, and adoption.

A higher TVL generally suggests greater liquidity and user trust in the protocol.

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