What is a healthy TVL to revenue ratio?

Lower ratios indicate better capital efficiency. Protocols generating significant fees relative to TVL are considered more sustainable.

What counts as protocol revenue?

Fees collected by the protocol treasury or distributed to token holders, not total fees paid by users (which may go to liquidity providers).

DeFi TVL to Protocol Revenue Ratio

Calculate the Price/Sales equivalent for DeFi protocols by comparing Total Value Locked to annualized protocol revenue. Identify overvalued versus undervalued DeFi protocols using this on-chain fundamental metric.

Networking

Algorithms

Binary & Number

Systems

Dev Metrics

IP Subnet Calculator

IP Address

CIDR Prefix

Network

192.168.1.0

Broadcast

192.168.1.255

Subnet Mask

255.255.255.0

First Host

192.168.1.1

Last Host

192.168.1.254

Usable Hosts

254

Binary breakdown:

IP: 11000000.10101000.00000001.00000000

Mask: 11111111.11111111.11111111.00000000

Net: 11000000.10101000.00000001.00000000

How It Works

Each component has a specific meaning:

This on-chain fundamental metric — The this on-chain fundamental metric recorded for the scenario being assessed.

Note: Interpret the tvl to revenue ratio result against the thresholds and context described above.

How to Use

Enter the this on-chain fundamental metric for the scenario you are assessing. Calculate the Price/Sales equivalent for DeFi protocols by comparing Total Value Locked to annualized protocol revenue. Identify overvalued versus undervalued DeFi protocols using this on-chain fundamental metric. Use the tvl to revenue ratio result to inform your calculation.

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