Solv Protocol, a distinguished Bitcoin staking platform, is dealing with accusations of inflating its complete worth locked (TVL) figures. Trade consultants have made these accusations, questioning the platform’s practices in dealing with belongings and the accuracy of its reported metrics.
Nevertheless, the platform’s staff has strongly denied these allegations, labeling them as baseless and an try and unfold concern and misinformation.
Issues come up over SolvBTC’s asset dealing with
On January 3, Nubit co-founder Hanzhi Liu drew consideration to attainable irregularities in Solv Protocol’s operations. Liu claimed that blockchain information suggests the platform recycles the identical Bitcoin throughout a number of protocols somewhat than locking distinctive deposits. In accordance with Liu, this follow artificially will increase Solv’s TVL figures.
Liu defined that SolvBTC, the platform’s Bitcoin asset, depends on pre-signed transactions showing in a number of staking protocols concurrently. This technique, he claimed, permits one Bitcoin to be counted a number of instances on completely different platforms, creating the phantasm of a better TVL.
For instance, one BTC in SolvBTC may very well be reported as three BTC utilizing this duplication throughout platforms.
“Solv Protocol doesn’t lock distinctive BTC deposits. As a substitute, it makes use of pre-signed transactions to “authorize” the identical BTC throughout a number of protocols: 1 BTC in Solv → +1 TVL BTC Identical BTC in Bsquared → +1 TVL BTC (once more) Identical BTC in ??? → +1 TVL BTC (once more) In actuality, 1 BTC = 3 faux TVL BTC,” mentioned Liu.
He additionally accused the platform of altering TVL information on monitoring instruments corresponding to DeFiLlama and shifting funds supposedly locked up in staking contracts. Subsequently, Liu urged customers to withdraw their funds from Solv and confirm whether or not their belongings are actually secured or recycled by means of completely different protocols.
Solv Protocol responds to the accusations
Solv Protocol Chief Advertising Officer Eva Binary dismissed the allegations, describing them as deceptive and baseless. She clarified that Solv’s TVL metrics align with customary 15-day readmission cycles and are precisely mirrored on DeFiLlama.
Binary additionally attributed TVL fluctuations in particular swimming pools, corresponding to SolvBTC.BBN, to routine redemption processes, denying any manipulation or “3x BTC” inflation.
Ryan Chow, co-founder of Solv, echoed these sentiments, accusing opponents of orchestrating a coordinated effort to tarnish the platform’s status. He additionally argued that these claims are a part of a deliberate marketing campaign to disrupt Solv’s enterprise and undermine its partnerships.
“We have now been conscious for months that opponents are smearing us to our companions, convincing them ‘do not work with Solv, work with us as an alternative’. [insert accusations above, if not more].’ To date we now have chosen to disregard it and get on with it. However not anymore. Make no mistake. It is a smear marketing campaign, coordinated and orchestrated, that goes to nice lengths in an try and take down Solv,” Chow mentioned.
TVL from Solv Protocol. Supply: DeFillama
Solv Protocol focuses on Bitcoin staking and yield era throughout a number of blockchain networks. In accordance with DeFiLlama, Solv at the moment manages roughly $2.5 billion in TVL.