Assessing a DeFi Project’s TVL Alone Is Like Judging a Book by Its Cover
Too Long; Didn't Read
Total Value Locked (TVL) is a popular DeFi metric that tracks the amount of crypto funds locked into all of a platform's smart contracts. TVL increases as the value of assets in a liquidity pool grows, so it can be skewed by market movements. It also misses out on transaction count and volumes, the number of liquidity providers, and other key data.