What is a Total Value Locked (TVL)?
Quick Definition
Total Value Locked (TVL) is a metric that measures the total value of assets held within a specific protocol, platform, or token.
Full Definition
TVL is one of the most widely used metrics in the crypto industry, particularly in DeFi (decentralized finance). It represents the aggregate value of all assets currently held in a protocol. These assets may be deposited in lending pools, locked in smart contracts, or held as backing for issued tokens. A higher TVL generally signals greater user adoption, deeper liquidity, and stronger market confidence.
TVL in the context of stablecoins
For stablecoins, TVL is typically equivalent to the total backing held in reserves, which should match the total supply multiplied by the token's intended value. TVL is useful as a quick health and adoption indicator, but it should always be considered alongside other factors: the quality of the assets, the transparency of the protocol, and the actual utility of the token.
Steady's TVL
Steady's TVL represents the total value of reserve assets held to back STDY in circulation. Current TVL is published in real time on the Transparency Portal, providing an at-a-glance view of the scale of the protocol and the value being secured.
Related Terms
Backing
ReadBacking refers to the assets or mechanisms that support a stablecoin's value and help it maintain its intended reference value.
Market Capitalization
ReadMarket capitalization, or market cap, is the total value of all tokens in circulation, calculated by multiplying the current price by the circulating supply.
Reserves
ReadReserves are the total pool of assets held by a stablecoin issuer to back the tokens in circulation.
Other Glossary Items
Learn about common and essential terms related to Steady and other stablecoin protocols.
Algorithmic Stablecoin
ReadAn algorithmic stablecoin attempts to maintain its value through automated rules that adjust token supply based on market demand, rather than holding equivalent reserve assets.
AML
ReadAML (Anti-Money Laundering) refers to the laws, regulations, and procedures designed to prevent the use of financial systems for laundering the proceeds of crime.
APY
ReadAPY, or Annual Percentage Yield, is the standardized rate of return an asset generates over a year, including the effect of compounding.
Arbitrum
ReadArbitrum is a Layer 2 blockchain network built on top of Ethereum, designed to offer faster and cheaper transactions while inheriting Ethereum's security and infrastructure.
Asset Backing
ReadAsset backing refers to the real-world or on-chain assets held by the issuer to support the value of every token in circulation.
Asset Locking
ReadAsset locking refers to restricting access to funds for a defined period or condition, during which they cannot be transferred or used.
Asset Segregation
ReadAsset segregation is the practice of keeping client or backing assets separate from the issuer's operational funds, protecting them from the issuer's other obligations.
Audit
ReadAn audit is an independent examination of a protocol's code, reserves, or operations by qualified third parties to verify accuracy and compliance with stated claims.
Blockchain Network
ReadA blockchain network is the system of connected participants and infrastructure that validates, records, and maintains data on a specific blockchain.
Blockchain
ReadA blockchain is a distributed digital ledger that records transactions across a network of computers in a secure, transparent, and tamper-resistant way.
Bridge
ReadA bridge is a mechanism that enables the transfer of assets or data between different blockchain networks.
Clarity Act
ReadThe Clarity Act is a proposed US legislative framework intended to clarify the regulatory treatment of digital assets, defining when they should be treated as securities versus commodities.
Collateralization / Over-collateralization
ReadCollateralization refers to the ratio between the value of assets held in reserve and the value of tokens issued. Over-collateralization means holding more in reserves than the value of tokens issued.
Composability
ReadComposability refers to the ability of different protocols, contracts, and tokens on a blockchain to interact and combine with each other seamlessly.
Counterparty Exposure
ReadCounterparty exposure refers to the risk that another party, such as a bank, custodian, broker, or service provider fails to fulfill its obligations, potentially affecting the assets or funds it holds.
LearnMoreAboutSteady
Transparency Portal
reserves, statements, audits, smart contract, and more.
FAQs
Discover the basics about Steady in our frequently asked questions.
Contact Us
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