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How Does Token Standardization Influence the Calculation of Total Value Locked (TVL)?

ERC-20 standards provide a uniform interface, allowing TVL aggregators to reliably track and calculate the total value of all locked tokens.
Greeks.Live16.11.25

How Does Token Standardization Influence the Calculation of Total Value Locked (TVL)?

Token standardization, primarily ERC-20, is crucial for TVL calculation. Since all compliant tokens share the same basic interface, a TVL aggregator can easily identify and track the balances of all supported tokens locked within a protocol's smart contracts.

This allows for a uniform, reliable method of calculating the total economic value secured by the protocol.

How Do Token Standards Relate to the Concept of Interoperability in DeFi?
What Is the Key Advantage of a Tokenized Option Being an ERC-721 (NFT) versus an ERC-20?
How Does the Total Value Locked (TVL) in DeFi DApps Measure Network Effect?
How Do Token Standards Impact Decentralized Finance (DeFi) Composability?

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