Yes, fully free with no signup. They monetize via the API (paid tier for high-volume) and donations. The free tier is enough for 99% of users.

Does TVL include borrowed funds?

Depends on the protocol type. Aave/Compound TVL counts deposits only (not borrowed amounts) to avoid double-counting. Some others count differently. DefiLlama publishes their methodology.

Yes — protocols can recursively borrow against their own collateral to inflate apparent TVL. Look at 'TVL minus borrowed' for cleaner number. Also check fee revenue — fake TVL doesn't generate fees.

Why is Tron's TVL so high?

Mostly USDT supply on the chain. Tron is the dominant USDT-issuance chain — much of its TVL is stablecoin sitting passively, not active DeFi.

What's the highest-TVL protocol in 2026?

Varies. As of May 2026, Lido (liquid ETH staking) and EigenLayer (restaking) lead at $30B+ each. Aave is largest pure lending protocol at $15B+.

Should I just deposit in the highest-TVL protocol?

Generally safer but not bulletproof. Multiple top-10-TVL protocols have had exploits. Diversify across 2-3 mature protocols rather than concentrating.

What's the difference between TVL and market cap?

TVL = capital in smart contracts. Market cap = circulating tokens × price. A protocol can have $1B market cap but $50M TVL (token speculation > actual usage) or vice versa.

How accurate is DefiLlama's data?

Very accurate — they pull directly on-chain via their own infrastructure. Occasional methodology updates can shift TVL numbers (like reclassifying recursive borrowing).

DefiLlama TVL Explained 2026

What is TVL and why does it matter?

TVL (Total Value Locked) is the dollar value of all assets deposited in a protocol's smart contracts. For Uniswap, TVL = all tokens currently in liquidity pools. For Aave, TVL = total deposits available to borrow. For staking protocols, TVL = total tokens staked.

Higher TVL signals (1) trust — users wouldn't park real money in a risky protocol; (2) battle-testing — TVL didn't accumulate overnight; (3) economic security — exploiting requires moving large sums. A $1B TVL protocol with 3+ years uptime is far safer than a $50M new protocol.

How to read a DefiLlama protocol page

Visit defillama.com/protocol/[name] for any protocol. Key info:

TVL chart — historical curve. Steadily growing = healthy. Sudden drop = depeg/exploit event.
Audits — links to formal security audits. Multiple recent audits from reputable firms is a green flag.
Chain breakdown — TVL per chain. Concentrated on one chain = chain-dependent risk.
Token info — protocol token's market cap, supply, FDV.
Forks — how many other protocols copied this one. Forks of forks suggest the original is established.

What TVL signals mean — and when they mislead

TVL is useful but easily gamed. Watch for these patterns:

TVL spike then plateau then drop: classic 'farm and dump' — protocol attracted mercenary capital with high emissions, then the capital left when emissions stopped.
TVL grown 100x in 30 days: highly suspicious. Real DeFi growth is gradual.
TVL dominated by one whale (>30%): one user can drain TVL by withdrawing. Look for diversified depositor base.
TVL inflated by recursive borrowing (Aave loop, Compound recursion): the 'real' economic TVL is lower than displayed.
TVL on a single chain with low ecosystem activity: protocol is fragile to chain-specific issues.

DefiLlama Yields — finding safe DeFi income

DefiLlama's Yields page (defillama.com/yields) ranks every yield farm by APY, risk score, and TVL. Filter by: stable pools only (lowest IL risk), audited only, minimum TVL ($10M+ for safety), and outlook (rising / steady / falling).

For most beginners: filter stable USDC/USDT/DAI pools on Aave/Compound/Curve at $100M+ TVL. Yields 3-8% APY, very low risk. The 50-200% APY farms exist but require accepting smart-contract risk and impermanent loss.

DefiLlama chains page — comparing ecosystems

Visit defillama.com/chains. Each chain shows its TVL, dominant protocols, fees generated, and 30-day TVL change. Useful for: (1) gauging which chain has the most economic activity; (2) deciding where to deploy capital; (3) spotting emerging chains before they hit mainstream.

May 2026 snapshot: Ethereum TVL $60B+, Solana $10B+, Tron $8B (mostly USDT), Arbitrum $5B, Base $4B+. Bitcoin DeFi via Babylon + Stacks added in 2025, now $3B+.

Other DefiLlama features worth knowing

Stablecoins page — track supply/demand for USDT, USDC, DAI, FRAX. Spot depegs and supply growth.
Bridges page — TVL on cross-chain bridges. Useful for security analysis (small bridges = bigger hack target).
Treasuries — DAO treasury values (Uniswap DAO, Aave DAO). Public on-chain so it's all verifiable.
Forks comparison — see which Uniswap forks are still alive (most aren't).
Hacks tracker — historical record of every major DeFi hack. Required reading before depositing into a new protocol.

DefiLlama API for builders

DefiLlama's public API is free, well-documented, and used by hundreds of analytics tools. Common use cases: feeding TVL data into trading bots, building portfolio dashboards, generating risk scores. API docs at defillama.com/docs.

Common mistakes when using TVL

Treating TVL as 'safety guarantee'. High TVL means many users trust the protocol, not that it can't be exploited. Multiple $1B+ protocols have been drained (Cream Finance, Wormhole bridge).
Comparing TVL across protocols with different mechanics. A lending protocol's TVL includes deposits available to borrow; a DEX's TVL includes paired token reserves. Apples and oranges.
Ignoring fee revenue. A high-TVL protocol that earns no fees is providing no real value — it's just parking capital. Check the Fees column.
Following TVL changes too short-term. Daily fluctuations can be misleading. Look at 30-day and 90-day trends.

DefiLlama TVL Explained 2026 — How To Read DeFi's Most Important Dashboard