A pool’s Total Value Locked (TVL) indicates the amount of capital deposited within it. A high TVL generally means lower impermanent loss for individual providers, as large pools are more resistant to price impact from big trades. However, it also means your share of the fee revenue will be smaller. There’s a constant trade-off between pool size and individual yield. Analyzing TVL is a key step in selecting the right Uniswap Liquidity Pools for your goals.
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