It is an asset that users farming, staking in various DEFI protocols. The above will create value as interest for users. The leading DEFI platforms today are UNISWAP, PANCAKE.
Staking and farming are forced to generate interest because in the process there is impermanent loss.
Topic: Total Value Locked (USD) in DeFI is $92.27B - what does in mean? (Read 59 times)
September 17, 2021, 09:19:48 AM
The best answer for you should be this https://coinmarketcap.com/alexandria/glossary/total-value-locked-tvl
In my understand if TVL was total assets that got locked into the defi platform. This assets represent total assets that brought by all of defi users into the platforms. These assets being staked on the defi platform to gain the interest like staking yield or farming yield.
You can try to read the article that i have mentioned above to know more about that. It means how much assets that were holding by a defi platform. it can also be used to determine how big the user base of such platform.
In my understand if TVL was total assets that got locked into the defi platform. This assets represent total assets that brought by all of defi users into the platforms. These assets being staked on the defi platform to gain the interest like staking yield or farming yield.
You can try to read the article that i have mentioned above to know more about that. It means how much assets that were holding by a defi platform. it can also be used to determine how big the user base of such platform.
September 17, 2021, 05:41:10 AM
So here is another indicator that I don't understand, however, I see it all around. On Ethereum main page it says "The amount of money in decentralized finance (DeFi) applications, the Ethereum digital economy. $92.14B "
Where does this number came from and why this is important (it is on the main page of ethereum.org, I guess it must be important)?
Where does this number came from and why this is important (it is on the main page of ethereum.org, I guess it must be important)?
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