Make money In DeFi - TVL & Other Metrics
This video explores the significance of Total Value Locked (TVL) as a vital indicator within the decentralized finance (DeFi) sector. TVL measures the cumulative value of assets locked in blockchain platforms, including cryptocurrencies held in smart contracts for liquidity pools, collateral for loans, and other tokenized assets. This metric offers investors insights into a platform's liquidity, with higher TVLs often signaling stronger investment prospects due to the critical role liquidity plays in a platform's growth.
However, the video also addresses the limitations of TVL, particularly its failure to account for price fluctuations in the crypto market, using the example of MakerDAO to illustrate how significant drops in asset prices can misleadingly suggest a decrease in platform engagement.
Beyond TVL, the video delves into additional metrics relevant to assessing DeFi protocols, including the utilization rate, which reflects the risk associated with lending platforms, the number of liquidity providers, which enhances platform stability, and both transaction count and volume, indicating the platform's activity level and popularity. It introduces the TVL/market cap ratio as a means to mitigate the impact of price volatility, offering a more stable metric for evaluating the extent of token supply utilization within DeFi pools. This comprehensive overview aims to arm viewers with the knowledge to more accurately gauge the health and potential of DeFi platforms beyond surface-level figures.
Thank you for watching and don´t forget to subscribe!
X accounts @MikaelGarp @LudwigTor
Tipjar
Ethereum: 0x93aC7eBC2C731914ABB9fDf1fF77Bc1E56A5140a
Bitcoin: bc1qp058qkgfsmccjeyfsy5qdx5qm9gy6k5gcyvu4r
00:00 Intro
0:11 Total Value Locked
0:55 The Importance Of TVL
1:25 The Biggest Flaw With TVL
2:22 Other Metrics
2:34 Utilization Rate
3:20 Number Of Liquidity Providers
3:52 Transaction Count
4:22 Transaction Volume
4:40 TVL In Ration With Market Cap
Support us by buying crypto on BitGet through this referral.
https://share.bitget.com/u/U8HSK155
Support us by buying crypto on Gemini through this referral.
https://www.gemini.com/share/96y8l8737
Disclaimer: The information provided in this video is for educational and entertainment purposes only. It is not financial advice.
#Crypto #Cryptocurrency #Bitcoin #Ethereum #defi #altcoins #Invest #Metaverse #Altcoin #News #SharkeFi #TVL #Totalvaluelocked #Utilizationrate #liquidityprovider #liquidityproviders #transactioncount #transactionvolume
-
1:29:24
PudgeTV
2 hours agoRocket League from the Content Creator House | Party Time w Pudge
9.49K6 -
10:56
Breaking Points
8 hours agoBREAKING: ICJ Orders Israel To HALT Invasion
12.4K43 -
DVR
Edge of Wonder
5 hours agoHollywood Star Power Rejected & Found Dyson Spheres Prove Alien Life
7.77K -
1:48:50
The Quartering
5 hours agoNick Rekieta Arrest Updates, Trump's Massive Turnout, Parents Abandon Disney
28.2K35 -
3:54:02
a12cat34dog
5 hours agoLIVE @ THE RUMBLE CREATOR HOUSE :: HAPPY FRIDAY :: GAMING & PARTYING
9.63K15 -
57:28
The Illusion of Consensus
9 hours agoIs Censorship a Desperate Last Stand for Power? Ft: Russell Brand
12.3K5 -
1:21:43
Mally_Mouse
4 hours agoLet's Play!!
14.9K4 -
58:14
The Why Files
21 hours agoGöbekli Tepe and the Prophecy of Pillar 43 | Apocalypse and the Vulture Stone
30.4K86 -
3:12:47
Twins Pod
6 hours agoTwins Pod - Episode 14 - Destiny: Top Black Conservatives VS Top Blue Haired Liberal!
57.4K94 -
1:17:49
The Michelle Moore Show
8 hours agoThe Michelle Moore Show Special Presentation: The Earthing Movie (May 24, 2024)
34.1K7