What is Total Value Locked (TVL)?

By dexpartacus | Hardrockcrypto | 22 Aug 2023


Total Value Locked (TVL) is a crucial metric used to measure the success and popularity of DeFi protocols. TVL represents the total amount of cryptocurrency held in a particular DeFi protocol and is calculated by adding up the total value of all assets locked in the protocol's smart contracts. While TVL is an important metric, it has limitations, such as not taking into account user activities and the potential for platforms to artificially inflate TVL. Despite these limitations, TVL remains a critical tool for evaluating the health and viability of DeFi projects, including those in the Cosmos ecosystem.

Umee is the most programmable, safety-first lending algorithm built as a blockchain. As a base layer blockchain, applications and money lego primitives can be built on top of Umee to access cross chain leverage, liquidity, and debt instruments. The Umee Blockchain facilitates interoperability between the Cosmos ecosystem, Ethereum, side chain architectures, layer two scaling solutions, rollups, and alternative base layer protocols.

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