Total-Value-Locked (TVL) Monitoring: Use Cases

Aegis enables users to set up automated alerts for certain TVL thresholds, providing up-to-date insight into the overall health of a particular DeFi platform or dApp. A high TVL is typically a positive sign associated with high levels of economic activity, yet sudden fluctuations may signal inflated project valuations and other malicious activity.

For Proof-of-Stake (PoS) blockchains, TVL may be used to track their overall performance and level of security. In decentralized exchanges (DEXes) like Uniswap, TVL also serves as an indicator of the available liquidity. Higher liquidity, meanwhile, is associated with lower slippage and better trading experience. In other money markets, TVL acts as a gauge for borrowing and lending activity, usually associated with better interest rates and more economic opportunities.

Although TVL should never be used as the only criterion for assessing the quality of DeFi projects, certain discrepancies or milestones often signal substantial market changes that investors may wish to react to. Aegis alerts are highly customizable, enabling users to specify the appropriate time frame, % tolerance level, and the specific direction of the TVL they wish to be notified about.