Glossary - ChicksX

Total Value Locked (TVL) is a metric representing the total capital deposited in a decentralized finance (DeFi) protocol.

Total Value Locked (TVL) is a measure of the total capital deposited in a decentralized finance (DeFi) protocol. It includes all cryptocurrencies and tokens locked in smart contracts for activities like lending, staking, and liquidity provision. TVL is a key indicator of a DeFi platform's popularity and trustworthiness. It reflects user confidence and the platform's ability to attract and retain capital. Higher TVL often suggests a more robust and active ecosystem. It's important for assessing the overall health and growth of the DeFi sector and the individual platforms within it.