TVL (Total Value Locked) explained in three sentences:
TVL refers to the total dollar value of assets locked in the smart contracts of a protocol or blockchain.
A rise in TVL may also be driven by short-term funds attracted by incentives; when those incentives decrease, the funds may quickly leave.
A high TVL doesn’t mean a protocol is safer—protocols holding more funds are also more likely to attract hackers.
$ETH 2421.5 (-0.86%)
TVL refers to the total dollar value of assets locked in the smart contracts of a protocol or blockchain.
A rise in TVL may also be driven by short-term funds attracted by incentives; when those incentives decrease, the funds may quickly leave.
A high TVL doesn’t mean a protocol is safer—protocols holding more funds are also more likely to attract hackers.
$ETH 2421.5 (-0.86%)