What this is
TVL (total value locked) is the dollar value a protocol holds. The same product can quote different numbers under different scopes: the staking vault’s TVL counts only tokens staked for yield, while circulating supply counts every token issued. Neither is wrong — they answer different questions.
What it means for your yield
Scale is a liquidity proxy: a larger pool of capital generally means deeper secondary markets and more orderly redemptions. A fast-shrinking TVL is the more useful signal — it often precedes thinner pools, worse slippage, and longer effective exit times.
Where it appears on Pennyworth
The identity ledger prints each product’s TVL with its scope spelled out (vault vs circulating) whenever the two differ, sourced from live data where available.