TVL stability (CoV over 90d)
A operational history factor in the v1.7.0 rubric. Measured per protocol on a c cadence.
Methodology how we score #
What this measures
This factor calculates the coefficient of variation (standard deviation divided by mean) of daily TVL over the trailing ninety days. A low coefficient of variation indicates stable TVL; a high coefficient indicates high volatility. The metric is sourced from DeFiLlama time-series data and updated continuously. It serves as a team-health and protocol-stability proxy: abrupt TVL drops that are not explained by market conditions or announced migrations suggest hidden problems that depositors are voting against with their capital.
Why it matters
TVL volatility has a dual signal value. Rapid outflows preceding a known exploit are a leading indicator that sophisticated depositors detected risk before retail users; Euler Finance's TVL had already declined meaningfully in the weeks before the March 2023 exploit. Conversely, highly volatile TVL on a protocol with no prior incidents may indicate farming-driven mercenary capital that will exit rapidly at the first sign of stress, reducing the stability of the protocol's deposit base. Sustained TVL stability across a ninety-day window, particularly through periods of market stress, is a meaningful positive signal.
Green / Yellow / Red
Green: coefficient of variation below 0.15 over the trailing ninety days, indicating stable deposit composition. Yellow: coefficient of variation between 0.15 and 0.35, indicating moderate volatility potentially consistent with market-wide movements. Red: coefficient of variation above 0.35, or a single-day TVL drop exceeding twenty percent not explained by a known market event or announced migration.
Common gray cases
Protocols that recently launched or migrated TVL to a new version will show high volatility during the migration window; this is scored gray during the transition and re-evaluated once the migration stabilizes.
Notable historical examples
No cross-hacked incidents currently linked in database for this factor.
Measurement what to look for #
Compute the coefficient of variation (σ/μ) of daily TVL over the trailing 90 days as a proxy for operational stability.