Solv Protocol, a popular Bitcoin staking platform, is dealing with accusations of inflating its overall worth locked (TVL) figures. Market specialists have actually raised these allegations, which question the platform’s asset-handling practices and the precision of its reported metrics.
The platform’s group has actually highly rejected these allegations, identifying them as unproven and an effort to spread out worry and false information.
Issues Arise Over SolvBTC’s Asset Handling
On January 3, Hanzhi Liu, co-founder of Nubit, accentuated prospective abnormalities in Solv Protocol’s operations. Liu declared that blockchain information recommends the platform recycles the very same Bitcoin throughout several procedures rather of locking special deposits. This practice, according to Liu, synthetically pumps up Solv’s TVL figures.
Liu described that SolvBTC, the platform’s covered Bitcoin property, depends on pre-signed deals to appear in several staking procedures concurrently. This approach, he declared, enables one Bitcoin to be counted several times throughout various platforms, developing the impression of greater TVL.
One BTC in SolvBTC might be reported as 3 BTC by leveraging this duplication throughout numerous platforms.
“Solv Protocol isn’t locking distinct BTC deposits. Rather, it’s utilizing pre-signed deals to “license” the very same BTC throughout several procedures: 1 BTC in Solv → +1 TVL BTC Same BTC in Bsquared → +1 TVL BTC (once again) Same BTC in??? → +1 TVL BTC (once again) In truth, 1 BTC = 3 phony TVL BTC,” Liu specified.
He likewise implicated the platform of modifying its TVL information on tracking tools like DeFiLlama and moving funds apparently secured staking agreements. Liu advised users to withdraw their funds from Solv and validate whether their possessions are truly protected or being recycled throughout procedures.
Solv Protocol Responds to the Allegations
Eva Binary, Solv Protocol’s Chief Marketing Officer, dismissed the accusations, explaining them as deceptive and unwarranted. She clarified that Solv’s TVL metrics line up with its basic 15-day restaking cycles and are properly reviewed DeFiLlama.
Binary likewise associated TVL variations in particular swimming pools, such as SolvBTC.BBN, to regular redemption procedures, rejecting any adjustment or “3x BTC” inflation.
Ryan Chow, co-founder of Solv, echoed these beliefs, implicating rivals of managing a collaborated effort to stain the platform’s track record. He likewise argued that these claims become part of an intentional project to interfere with Solv’s operations and weaken its collaborations.
“For months we know rivals are out there smearing us to our partners and convince them ‘do not deal with Solv, deal with us rather, [insert accusations above, if not more]’ We have actually up until now selected to disregard and continue doing us. No more. Make no error. This is a defamation of character, collaborated and managed, and going to terrific lengths in effort to take Solv down,” Chow specified.
Solv Protocol’s TVL. Source: DeFillama
Solv Protocol focuses on Bitcoin staking and yield generation throughout numerous blockchain networks. According to DeFiLlama, Solv presently handles around $2.5 billion in TVL.
Disclaimer
In adherence to the Trust Project standards,
