DeFi Metrics
Understand the key metrics that matter when analyzing DeFi protocols. Learn how to evaluate TVL, yields, protocol revenue, and risk factors.
Key DeFi Metrics
Total Value Locked (TVL)
The total amount of assets deposited in a DeFi protocol
Primary measure of protocol size and user trust
Protocol Revenue
Fees generated by the protocol from user activity
Indicates sustainability and value capture
Yield/APY
Annual percentage yield offered to liquidity providers
Drives capital allocation decisions
Utilization Rate
Percentage of deposited assets being borrowed
Affects interest rates and protocol efficiency
Understanding TVL
What TVL Tells You
Growing TVL
Indicates user confidence, attractive yields, or protocol adoption
Declining TVL
May signal reduced yields, security concerns, or better alternatives
TVL Caveats
Can be inflated by token price, double-counted, or incentivized temporarily
TVL Composition Analysis
Higher stablecoin ratio often indicates more "sticky" TVL less affected by token price volatility
Yield Analysis
Sources of Yield in DeFi
Lending Interest
Earn interest by supplying assets to lending protocols
Trading Fees
Share of swap fees for providing liquidity to DEXs
Token Incentives
Protocol tokens distributed to attract liquidity
High Yields = High Risk
Yields significantly above market rates often come with hidden risks: impermanent loss, smart contract risk, token dilution, or unsustainable tokenomics. Always understand WHERE the yield comes from.
Protocol Comparison
| Protocol | Category | TVL | APY Range | Risk | Chains |
|---|---|---|---|---|---|
| Aave V3 | Lending | $12.5B | 2-8% | Low | 8 |
| Uniswap V3 | DEX | $4.2B | 5-50% | Medium | 7 |
| Lido | Staking | $28B | 3.5% | Low | 1 |
| GMX | Perps | $500M | 15-40% | High | 2 |
| Curve | DEX | $2.1B | 2-20% | Medium | 12 |
* Data is illustrative. Always verify current metrics from official sources.
Risk Assessment Framework
Smart Contract Risk
Bugs or vulnerabilities in protocol code
Oracle Risk
Price feed manipulation or failures
Liquidity Risk
Inability to exit positions at fair price
Governance Risk
Malicious or poorly designed governance actions
Counterparty Risk
Dependence on centralized entities
Protocol Health Checklist
Security
- Multiple security audits from reputable firms
- Active bug bounty program
- Time-locked admin functions
- No history of major exploits
Fundamentals
- Sustainable revenue model
- Growing or stable TVL trend
- Active development and updates
- Transparent team and documentation
Track DeFi Metrics in Real-Time
Monitor TVL, yields, and protocol health across the DeFi ecosystem with ChainLens.