Encyclopedia DeFi · Entry 149
Total value locked: what TVL measures and what it misses
In this article
At a glance
Key facts
| Fact | Detail | Source |
|---|---|---|
| Valuation | TVL combines asset quantities with prices. | [1] |
| Scope | DefiLlama separates borrowed, staking and other categories under its methodology. | [1] |
| Overlap | Receipt tokens deposited elsewhere can create double-counted exposure. | [1] |
A falling chart need not mean withdrawals
If a protocol holds 100 units of an asset priced at $2,000, its value is $200,000. If the price falls to $1,500 while the quantity stays unchanged, the value becomes $150,000 with no withdrawal.
Separate quantity changes and price changes before describing inflows or outflows.
Read the provider’s inclusion rules
DefiLlama’s retrieved methodology excludes or separately tracks several categories, including borrowed coins and protocol-issued tokens in specified contexts. Other providers can use different definitions.
A displayed toggle for double-counted positions can materially change an aggregate. Keep the settings and observation time with any cited number.
Capital exposure is not a security review
TVL can show that assets are exposed to a protocol, but does not inspect its admin keys, code or insolvency resilience. A large deposit base can coexist with concentrated dependencies.
Likewise, TVL is not trading volume or fees earned. Use separate metrics for deposits, activity and economic results.
Direct answers
Questions people ask
Can I add every protocol’s TVL to measure unique DeFi capital?
Not safely without a consistent overlap policy. A receipt from one protocol can be deposited into another, causing the same underlying assets to appear in more than one position.
Inspect the evidence
The answer and key facts have stable claim links. These records retain the scope and qualification when reused.
Total value locked, or TVL, measures the value of assets counted within a protocol or system under a stated methodology. It can change because asset prices change even when no one deposits or withdraws. Provider definitions, receipt-token handling and category exclusions matter, so TVL is not a universal measure of safety, revenue or unique capital.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:15:18.493Z.
Link to this claimValuation: TVL combines asset quantities with prices.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:15:18.493Z.
Link to this claimScope: DefiLlama separates borrowed, staking and other categories under its methodology.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:15:18.493Z.
Link to this claimOverlap: Receipt tokens deposited elsewhere can create double-counted exposure.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:15:18.493Z.
Link to this claimRevision history
- — First publication after primary-source research and independent automated verification.
Source register
Sources and references
Retrieval dates and locators are recorded individually.- DefiLlama: How we calculate TVLDefiLlama
Provider-specific valuation scope and TVL methodology.
Locator: Total Value Locked · Retrieved: 2026-10-02T17:03:46.209ZOpen source
Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.
Editorial method and correctionsDegrees of Satoshi editorial project. “Total value locked: what TVL measures and what it misses.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/defi-tvl/