The total value of assets deposited in a DeFi protocol's smart contracts. TVL is the most common metric for measuring protocol adoption, but it can be misleading: incentivized liquidity (paid via token emissions) inflates TVL without indicating organic demand.
Tokenomics
Total Value Locked (TVL)
Related terms in Tokenomics
Protocol Revenue
Income generated by a protocol's core operations, distinct from token price appreciation. In Uniswap V2, proto...
Token Vesting
A schedule that releases tokens to holders over time rather than all at once. Prevents early investors and tea...
Governance Token
A token that grants holders voting rights over protocol decisions. Can cover parameter changes (fee rates, col...