Solv Protocol, a outstanding Bitcoin staking platform, is dealing with allegations of inflating its complete worth locked (TVL) figures. Business consultants have raised these accusations, which query the platform’s asset-handling practices and the accuracy of its reported metrics.
Nonetheless, the platform’s staff has strongly denied these accusations, labeling them as unfounded and an try and unfold concern and misinformation.
Issues Come up Over SolvBTC’s Asset Dealing with
On January 3, Hanzhi Liu, co-founder of Nubit, introduced consideration to potential irregularities in Solv Protocol’s operations. Liu alleged that blockchain knowledge suggests the platform recycles the identical Bitcoin throughout a number of protocols as an alternative of locking distinctive deposits. This apply, in accordance with Liu, artificially inflates Solv’s TVL figures.
Liu defined that SolvBTC, the platform’s wrapped Bitcoin asset, depends on pre-signed transactions to seem in a number of staking protocols concurrently. This methodology, he claimed, permits one Bitcoin to be counted a number of occasions throughout completely different platforms, creating the phantasm of greater TVL.
For instance, one BTC in SolvBTC might be reported as three BTC by leveraging this duplication throughout varied platforms.
“Solv Protocol isn’t locking unique BTC deposits. Instead, it’s using pre-signed transactions to “authorize” the identical BTC throughout a number of protocols: 1 BTC in Solv → +1 TVL BTC Similar BTC in Bsquared → +1 TVL BTC (once more) Similar BTC in ??? → +1 TVL BTC (once more) In actuality, 1 BTC = 3 faux TVL BTC,” Liu said.
He additionally accused the platform of altering its TVL knowledge on monitoring instruments like DeFiLlama and transferring funds supposedly locked in staking contracts. So, Liu urged customers to withdraw their funds from Solv and confirm whether or not their belongings are genuinely secured or being reused throughout protocols.
Solv Protocol Responds to the Allegations
Eva Binary, Solv Protocol’s Chief Advertising and marketing Officer, dismissed the allegations, describing them as deceptive and baseless. She clarified that Solv’s TVL metrics align with its commonplace 15-day restaking cycles and are precisely mirrored on DeFiLlama.
Binary additionally attributed TVL fluctuations in particular swimming pools, comparable 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 repute. He additionally argued that these claims are a part of a deliberate marketing campaign to disrupt Solv’s operations and undermine its partnerships.
“For months we are aware competitors are out there smearing us to our partners and persuade them ‘don’t work with Solv, work with us instead, [insert accusations above, if not more].’ We have so far chosen to ignore and continue doing us. But no more. Make no mistake. This is a smear campaign, coordinated and orchestrated, and going to great lengths in attempt to take Solv down,” Chow said.
Solv Protocol makes a speciality of Bitcoin staking and yield era throughout a number of blockchain networks. Based on DeFiLlama, Solv at present manages roughly $2.5 billion in TVL.
Disclaimer
In adherence to the Belief Mission pointers, BeInCrypto is dedicated to unbiased, clear reporting. This information article goals to offer correct, well timed data. Nonetheless, readers are suggested to confirm details independently and seek the advice of with knowledgeable earlier than making any choices based mostly on this content material. Please notice that our Phrases and Situations, Privateness Coverage, and Disclaimers have been up to date.
