If I say TVL, what do you think of?

If you're interested in blockchains and cryptocurrencies, you might have heard of TVL. I'll explain what this term means in a few words below.

The Total Value Locked (TVL) in Decentralized Finance (DeFi) is a metric that represents the total amount of assets that are currently being held or "locked" in DeFi protocols. These protocols could be lending platforms, decentralized exchanges (DEXs), yield farming pools *, or any other type of financial service that operates on a blockchain network, particularly Ethereum and other blockchain platforms that support smart contracts.

TVL is an important indicator of the overall health and growth of the DeFi ecosystem. It reflects the amount of trust and usage that these protocols are garnering. A higher TVL indicates that more users are participating in the DeFi space.

* Yield farming is a practice in decentralized finance (DeFi) where users stake their cryptocurrencies in a DeFi protocol to earn rewards, often in the form of interest or new tokens. By depositing their assets into liquidity pools or lending them out, they receive a yield based on the amount invested. This method is popular for maximizing returns on investment in the crypto ecosystem, but it carries risks related to the volatility and security of the protocols.

Disclaimer: I am posting in a personal capacity. My statements do not commit any organization or company. This is not investment advice. Do your own research.