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What Is Total Value Locked (TVL) in Crypto and Why Does It Matter?
TVL is an indicator used to assess the overall value of assets deposited in a single DeFi project or across all DeFi protocols. It is simply defined as the total value of cryptocurrency locked in a smart contract. TVL could be measured in the US dollar or any other fiat currency. DeFi provides various investment products including popular ones such as lending, staking, and liquidity pools. These services are provided in the form of smart contracts. TVL can be used to determine the value of assets locked in each DeFi service. For example, TVL in staking indicates the total value locked in the DeFi staking protocol. ... (full story)