What is Total Value Locked (TVL)?

TVL represents the total amount of assets currently deposited in the protocol's smart contracts. For this pool, the TVL is $15,176,998, indicating the depth of available liquidity.

Is a high TVL better?

Generally, yes. A higher TVL implies more liquidity, which reduces price slippage for traders and suggests higher trust in the protocol's security.

Dashboard Protocols Chains Stability

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Base Compound V3

Market Depth Analysis

Protocol: Compound V3 | Asset: USDC

$15.18M

Total Value Locked

Liquidity Reserves

Relative Visualisation (Cap: $50M)
Status: High Depth

Deep Dive Metrics

Raw TVL $15,176,998

Chain Dominance 1.682%

Est. Solvency Score 7.6/10

Whale Tolerance Threshold:
Recommended max deposit/withdrawal limit: $151,770 (approx. 1% of Pool). Exceeding this may trigger arbitrage bots.

Technical Market Report

1. Strategic Positioning

Within the Base ecosystem, Compound V3 has aggregated a significant reserve of USDC. With a TVL of $15,176,998, it represents roughly 1.68% of the tracked sector liquidity.

This capacity is vital for traders requiring execution efficiency. As capital continues to flow into this contract, the protocol's resilience against external market shocks typically improves, fostering a more stable yield environment.

2. Liquidity & Volatility Profile

The pool displays resilient capacity, creating a high barrier against manipulation. Large market orders are absorbed with minimal price displacement. The capacity of the liquidity pool is directly correlated to the asset's ability to absorb shock without drastic price displacement. With a calculated "Volatility Buffer" rating of High, the smart contract demonstrates high resistance to market manipulation.

3. Capital Efficiency & Slippage

Institutional execution is feasible. Slippage on standard trade sizes is negligible. For traders looking to enter or exit positions in USDC, understanding the price impact is vital for capital preservation. Below is a theoretical projection of price impact based on constant product market maker formulae relative to total TVL:

Trade Size	Est. Impact (Theoretical)	Risk Assessment
$1,000	0.0066%	Safe
$10,000	0.0659%	Safe
$100,000	0.6589%	Safe

*Note: Slippage values are theoretical estimates. Actual execution depends on routing paths and active order books.

TVL Education Guide

TVL as a Trust Indicator

Total Value Locked acts as a 'Solvency Score' in Decentralised Finance. High TVL generally correlates with verified smart contracts and high community trust, though it is not a guarantee of safety.

Impact on APY

There is often an inverse relationship between TVL and Yield. As more capital enters the pool to chase rewards, the APY is diluted among more participants, leading to rate compression over time.

Frequently Asked Questions

What happens if TVL drops suddenly? A sudden drop in TVL often indicates a "Bank Run" or a loss of confidence in the protocol. This usually leads to higher volatility and lower liquidity for remaining users.

Does TVL affect APY? Yes. In most yield farming scenarios, as TVL increases, the APY decreases because the fixed token rewards are shared among more participants (dilution).

Data Analysis by MooniTooki

Chief Data Architect @DeFiStar.io Follow on X for real-time alpha and risk updates.

Data sourced via internal indexer. Active Tracking: 04 Dec 2025, 11:04 UTC. Disclaimer: Data is for informational purposes only. Past performance does not guarantee future results. Terms of Service apply.