For measurement of the general performance of the DeFi yield farming outlook, look no further than Total Value Locked (TVL) – which measures the amount of crypto locked in DeFi lending and similar money markets.
In a way, TVL is the combined liquidity present in liquidity pools. This useful index is used to determine the yield farming and DeFi market health in general. It is also effective in the comparison of “market shares” among various protocols of DeFi.
DeFi Pulse provides a good TVL tracking platform. It enables you to know what platforms have the most ETH or other crypto holdings locked in DeFi. With this, you can have an overall idea of the yield farming present state.
Logically, the progress of yield farming can be determined by the increase in value lock. Note that TVL can be measured in ETH, BTC, or USD, each with a different viewpoint for the various DeFi money markets state.
