Total Value Locked(TVL)
The total value of crypto assets deposited in a DeFi protocol or across all of DeFi.
In-Depth Explanation
TVL measures the dollar value of assets users have deposited into smart contracts. It's the most common metric for measuring DeFi adoption, but has limitations: it can be inflated by leverage, doesn't indicate profitability, and says nothing about sustainable usage. High TVL with low revenue may indicate mercenary capital chasing incentives.
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Related Terms
Protocol Revenue
Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.
Take Rate
The percentage of transaction volume or fees that a protocol captures as revenue.
Liquidity
The ease with which an asset can be bought or sold without significantly affecting its price.
More in Metrics
View all →Protocol Revenue
Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.
Take Rate
The percentage of transaction volume or fees that a protocol captures as revenue.
Fees
Total fees generated by activity on a protocol, regardless of who receives them.
Gross Margin
Protocol revenue minus the direct costs required to generate that revenue, expressed as a percentage.