{
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  "schemaVersion": "1.0.0",
  "id": "defi-tvl",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/defi-tvl/",
  "collection": "defi",
  "title": "Total value locked: what TVL measures and what it misses",
  "description": "Interpret total value locked using a provider’s scope, asset prices and double-counting rules, rather than treating TVL as revenue or a safety certificate.",
  "aliases": [
    "TVL",
    "total value locked"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:15:18.493Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "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.",
    "claimId": "defi-tvl-quick-answer",
    "sourceIds": [
      "defillama-tvl"
    ]
  },
  "keyFacts": [
    {
      "label": "Valuation",
      "value": "TVL combines asset quantities with prices.",
      "sourceIds": [
        "defillama-tvl"
      ],
      "id": "valuation",
      "claimId": "defi-tvl-fact-valuation"
    },
    {
      "label": "Scope",
      "value": "DefiLlama separates borrowed, staking and other categories under its methodology.",
      "sourceIds": [
        "defillama-tvl"
      ],
      "id": "scope",
      "claimId": "defi-tvl-fact-scope"
    },
    {
      "label": "Overlap",
      "value": "Receipt tokens deposited elsewhere can create double-counted exposure.",
      "sourceIds": [
        "defillama-tvl"
      ],
      "id": "overlap",
      "claimId": "defi-tvl-fact-overlap"
    }
  ],
  "prerequisites": [
    "what-is-defi"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "A falling chart need not mean withdrawals",
      "sourceIds": [
        "defillama-tvl"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "scope",
      "heading": "Read the provider’s inclusion rules",
      "sourceIds": [
        "defillama-tvl"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "limits",
      "heading": "Capital exposure is not a security review",
      "sourceIds": [
        "defillama-tvl"
      ],
      "paragraphs": [
        "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."
      ]
    }
  ],
  "faq": [
    {
      "question": "Can I add every protocol’s TVL to measure unique DeFi capital?",
      "answer": "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.",
      "sourceIds": [
        "defillama-tvl"
      ]
    }
  ],
  "claims": [
    {
      "id": "defi-tvl-quick-answer",
      "articleSlug": "defi-tvl",
      "statement": "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.",
      "sourceIds": [
        "source-3649ada489ba8078"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3649ada489ba8078",
          "locator": "Total Value Locked"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Read DefiLlama data definitions: borrowed assets, governance staking, noncirculating supply and double-counted receipt positions are excluded or tracked separately according to specified scopes.",
          "Recomputed 100*2000=200000 and 100*1500=150000 with unchanged quantity. The source explicitly distinguishes price-induced TVL changes from inflows; safety and revenue are not inferred from TVL."
        ]
      }
    },
    {
      "id": "defi-tvl-fact-valuation",
      "articleSlug": "defi-tvl",
      "statement": "Valuation: TVL combines asset quantities with prices.",
      "sourceIds": [
        "source-3649ada489ba8078"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3649ada489ba8078",
          "locator": "Total Value Locked"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Read DefiLlama data definitions: borrowed assets, governance staking, noncirculating supply and double-counted receipt positions are excluded or tracked separately according to specified scopes.",
          "Recomputed 100*2000=200000 and 100*1500=150000 with unchanged quantity. The source explicitly distinguishes price-induced TVL changes from inflows; safety and revenue are not inferred from TVL."
        ]
      }
    },
    {
      "id": "defi-tvl-fact-scope",
      "articleSlug": "defi-tvl",
      "statement": "Scope: DefiLlama separates borrowed, staking and other categories under its methodology.",
      "sourceIds": [
        "source-3649ada489ba8078"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3649ada489ba8078",
          "locator": "Total Value Locked"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Read DefiLlama data definitions: borrowed assets, governance staking, noncirculating supply and double-counted receipt positions are excluded or tracked separately according to specified scopes.",
          "Recomputed 100*2000=200000 and 100*1500=150000 with unchanged quantity. The source explicitly distinguishes price-induced TVL changes from inflows; safety and revenue are not inferred from TVL."
        ]
      }
    },
    {
      "id": "defi-tvl-fact-overlap",
      "articleSlug": "defi-tvl",
      "statement": "Overlap: Receipt tokens deposited elsewhere can create double-counted exposure.",
      "sourceIds": [
        "source-3649ada489ba8078"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3649ada489ba8078",
          "locator": "Total Value Locked"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:15:18.493Z",
        "reviewer": "automated independent verification — DeFi expansion reviewer",
        "notes": [
          "Read DefiLlama data definitions: borrowed assets, governance staking, noncirculating supply and double-counted receipt positions are excluded or tracked separately according to specified scopes.",
          "Recomputed 100*2000=200000 and 100*1500=150000 with unchanged quantity. The source explicitly distinguishes price-induced TVL changes from inflows; safety and revenue are not inferred from TVL."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "defillama-tvl",
      "label": "DefiLlama: How we calculate TVL",
      "publisher": "DefiLlama",
      "url": "https://docs.llama.fi/analysts/data-definitions",
      "locator": "Total Value Locked",
      "note": "Provider-specific valuation scope and TVL methodology.",
      "version": null,
      "checkedAt": "2026-10-02T17:03:46.209Z",
      "contentSha256": "fdef2a756c1c1b0e08da545903b0155ed3e86d4903a68fa8e2c9cddcb7edefa7",
      "recordId": "source-3649ada489ba8078"
    }
  ],
  "related": {
    "articles": [
      "defi-composability",
      "market-cap-vs-fdv",
      "incentives-and-earned-fees"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees 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/"
}