Description: Value locking refers to the amount of capital that is locked in a DeFi protocol, often used to measure the total value locked (TVL) in liquidity pools. This concept is fundamental in the decentralized finance (DeFi) ecosystem, as it indicates the amount of assets that users have deposited in a specific protocol, which in turn reflects the trust and adoption of that protocol. Value locking can be seen as an indicator of the health and popularity of a DeFi project, as a higher TVL generally suggests greater user interest and participation. Furthermore, value locking is crucial for the functioning of various DeFi applications, such as decentralized exchanges (DEXs), lending platforms, and yield farming, where users lock their assets to earn returns or participate in protocol governance. In this sense, value locking not only represents immobilized capital but is also an essential component for the liquidity and operability of decentralized financial services.
