What does TVL actually tell us?
TVL is not the same as protocol revenue, user count, or trading volume.
An asset may be counted more than once: it can be deposited into Protocol A in exchange for a receipt token, which is then deposited into Protocol B. Both protocols count that asset in their TVL.
When managing positions, the most important thing to keep in mind is this: when looking at changes in TVL, first distinguish whether they’re due to price movements or actual inflows and outflows of funds.
$ETH 2237.03（-0.43%）
TVL is not the same as protocol revenue, user count, or trading volume.
An asset may be counted more than once: it can be deposited into Protocol A in exchange for a receipt token, which is then deposited into Protocol B. Both protocols count that asset in their TVL.
When managing positions, the most important thing to keep in mind is this: when looking at changes in TVL, first distinguish whether they’re due to price movements or actual inflows and outflows of funds.
$ETH 2237.03（-0.43%）
