🧵 HOT take on TVL 🔥 How big is the TVL on #Flarenetwork actually RN. 🔥 

The site Defil Lama shows a break up of TVL, which is almost 80 mill. USD on #Flarenetwork, almost the same as on XRPL. Kind of mind-blowing since it says a lot about the huge scope that lies ahead of #Flarenetwork , comparing the market cap with $XRP ✨️✨️✨️

But if we include the 7.3B $FLR currently staked on #FlareStake the TVL on #Flarenetwork is actually almost 300 mill. USD. And why not include these? These $FLR are not immediately accessible to the market, which basically is how we define TVL.
 
Ok,so why does Defil Lama only show a TVL of 31 mill. USD. For some reason, Defil Lama only summarises the stablecoin TVL on #Flarenetwork, but if you open the break up, you will see that it's much higher, coming to almost 80 mill. USD, but still not including #FlareStake.💰  

So what is the definition of TVL and how will we know what is correct?

TVL (Total Value Locked) represents the total value of cryptocurrency assets that are deposited in a decentralized finance (DeFi) protocol or across an entire blockchain ecosystem. It's essentially a measure of how much capital is being used within a DeFi system.

In the context of DeFi and TVL, "lock" refers to when cryptocurrency assets are temporarily immobilized or made inaccessible for normal trading/transfer because they are being used within a protocol. However, there are several specific forms this "locking" can take in:

1. Smart Contract Deposits
- Assets deposited into a protocol's smart contracts
- User maintains ownership but can't freely move tokens until they withdraw
- Example: Providing liquidity to a DEX like Blazeswap

2. Staking
- Tokens committed to network security or governance

3. Collateral
- Assets pledged against loans
- Locked until loan is repaid
- Example: Depositing supply into @Kinetic_Markets

4. Yield Farming
- Tokens committed to earn rewards
- May have vesting or unlock periods
- Example: LP tokens staked in reward programs

Important distinctions:
- Not all "locked" assets are equally illiquid
- Some protocols allow immediate withdrawal
- Others have mandatory lock periods
- "Soft locks" might have withdrawal penalties rather than strict time locks
- Some assets might be "locked" but still usable within the protocol's ecosystem

The definition of "lock" can sometimes be debated in TVL calculations, particularly around:
- Whether assets that can be withdrawn instantly should count as "locked"
- How to treat assets that are being used in multiple ways within a protocol
- Whether governance tokens held by DAOs should count as "locked"
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