@g8glc2f7njccr
Total Value Locked (TVL): A Flawed Metric?
TVL has become a go-to metric for assessing DeFi protocols. It measures the total value of assets locked within a protocol. However, its flaws are increasingly evident. TVL can be inflated by high token prices or large deposits by whales. It doesn't account for liquidity fragmentation or the actual usage of the protocol. As DeFi evolves, relying solely on TVL for evaluation might lead to oversimplified judgments. A more comprehensive assessment combining TVL with other metrics like trading volume and user activity could offer a clearer picture.
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