Total value locked (TVL) is the aggregate value of all assets deposited into a DeFi protocol — lending markets, liquidity pools, yield vaults. It is the most widely used shorthand for a protocol's size and user activity.
TVL is a rough measure, not a perfect one. The same capital can be deposited into one protocol, borrowed, and deposited into another, counting multiple times in the headline figure. A high TVL also does not mean the protocol is secure or the yields are sustainable.
Used alongside other metrics — transaction volume, unique users, revenue generated — TVL provides useful context. Used alone, it can flatter projects that have attracted deposits through temporary high rewards rather than genuine utility.
Worked example
A lending protocol with $2 billion TVL has $2 billion in user funds currently earning interest or used as collateral.
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This definition is general education, not investment advice. Markets — especially crypto — are volatile and you can lose money. Please read our disclaimer and see our methodology.