Used by DefiLlama

What is it
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TVL is one of the most important reference indicators for Defi projects, and DefiLlama is a professional analysis tool focusing on TVL data for Defi projects. It classifies current Defi and tracks its TVL over time.

function
1. DefiLlama classifications include decentralized exchanges, packaged assets, lending, annualized rate products, insurance, and more.
2. DefiLlama classifies the assets locked up and sees the assets locked up in the project at a glance. DefiLlama provides an overview of project hedged assets, as well as time change data on the hedging volume of a single asset.
3. DefiLlama can be cross-chain data classification function of the same project. For example, AAVE's hedging data on Ethereum and Polygon.

The value of TVL:
1. TVL is an important indicator of the asset security provided by the project
2. TVL is one of the indicators of project size
3. Stable hedging volume is one of the indicators of user stickiness
4. The average lock-up of a single user calculated by combining the hedging address can determine the number of institutional investors or individual investors of the project, institutions pay more attention to capital security (such as Curve), and individual investors pursue profits (such as Pancakeswap)

TVL lock-up combined with different data will show different information, and in-depth data mining is helpful for the investment of crypto assets.

How to use

If you're bullish on a public chain, DeFillama can help you monitor the dapps on that chain and their specifics.

The Mcap/TVL ratio shows which public chains are undervalued.