Navigating DeFiLlama: A Beginner's Tutorial to Understanding TVL and Charts

DeFiLlama is one of the most trusted platforms for tracking decentralized finance (DeFi) data across multiple blockchains. Whether you're exploring new protocols or comparing yield opportunities, understanding how to read DeFiLlama’s charts and metrics—especially TVL (Total Value Locked)—is essential for making informed decisions.

This tutorial breaks down the basics of navigating DeFiLlama, interpreting its charts, and using its insights to explore the DeFi ecosystem with confidence.

 

🧠 What Is TVL and Why Does It Matter?

TVL (Total Value Locked) represents the total amount of assets deposited into a DeFi protocol. It’s a key metric used to gauge:

Higher TVL often indicates a more active and trusted protocol, though it’s not the only factor to consider.

 

🖥️ Getting Started with DeFiLlama

Visit DeFiLlama.com and you’ll land on the homepage dashboard. Here’s what you’ll see:

You can filter by chain, category (e.g., lending, DEX, staking), and even stablecoin dominance.

 

📊 How to Read TVL Charts

1. Protocol TVL Chart

Click on any protocol (e.g., Aave, Curve, Aerodrome) to view its TVL over time. This chart shows:

2. Chain TVL Chart

Explore how different blockchains are performing. For example:

3. Category Charts

Want to compare lending platforms or DEXs? Use the category filter to view TVL across similar protocols.

 

🔍 Tips for Using DeFiLlama Effectively

DeFiLlama also offers dashboards for stablecoins, bridges, oracles, and liquid staking—each with its own set of charts and metrics.

 

❓ Frequently Asked Questions (FAQs)

Q1: Is higher TVL always better?

A: Not necessarily. While high TVL suggests trust and activity, smaller protocols may offer better yields or innovation. Always consider risk and utility.

 

Q2: Can I track my own portfolio on DeFiLlama?

A: Yes. The DeFiLlama Wallet lets you connect your wallet and track assets across chains, including yield positions.

 

Q3: How often is TVL data updated?

A: Most data is updated in real-time or hourly, depending on the protocol’s integration and blockchain speed.

 

Q4: What’s the difference between TVL and market cap?

A: TVL measures assets locked in a protocol. Market cap refers to the total value of a token’s circulating supply. They serve different purposes.

 

Q5: Is DeFiLlama free to use?

A: Yes. DeFiLlama is completely free and open-source, with no subscription or paywall.

 

Whether you're a DeFi newcomer or a seasoned investor, DeFiLlama offers the tools to explore, compare, and understand the decentralized economy. Start navigating with confidence and unlock the full potential of on-chain analytics.