Total Value Locked (TVL)

Total Value Locked (TVL) represents the total capital locked into DeFi protocols, usually in the form of liquidity pools or collateralized assets. TVL is a critical metric in tokenomics, providing insight into the level of capital invested in DeFi and how it correlates with the value and demand for native tokens.

Usage:

• TVL as a Market Health Indicator: TVL in DeFi platforms like Aave or Compound directly impacts the utility and value of governance tokens such as COMP and AAVE. As TVL increases, so does the demand for the token.

• Protocol Adoption and Token Demand: Platforms with higher TVL tend to have more robust token demand, leading to better liquidity and staking rewards for token holders.

Key Data:

• TVL Growth Trends: Changes in TVL over time, indicating platform growth or contraction.

• TVL by Protocol: TVL data for specific DeFi protocols, highlighting the performance of each.

• Liquidity Provider Impact: The amount of capital contributed by liquidity providers and its impact on protocol rewards.