How Does a Protocol’s Total Value Locked (TVL) Relate to Its Sink Utility?

A protocol's TVL is a direct measure of the capital that has been sunk (locked) into the protocol, which is often a function of its sink utility. High sink utility, such as the requirement to lock the native token for core services, leads to a higher TVL.

Therefore, TVL serves as a key indicator of the effectiveness of the protocol's sink mechanisms and its resulting demand for the native token.