Solv Protocol was accused of falsifying Bitcoin staking data

Popular Bitcoin staking platform, Solv Protocol, is currently facing accusations of artificially inflating the total value locked (TVL) metric. Industry experts have raised these allegations, questioning the platform’s asset management practices and the accuracy of its metrics.

However, the platform’s team strongly denied the allegations, calling them baseless and an attempt to spread fear and misinformation.

Concerns About SolvBTC Asset Management

On January 3, Hanzhi Liu, co-founder of Nubit, raised concerns about Solv Protocol’s operations. Liu alleges that blockchain data shows the platform reuses the same Bitcoin across multiple protocols instead of locking unique deposits. According to Liu, this increased Solv’s TVL audience.

Liu explained that SolvBTC, the platform’s wrapped Bitcoin asset, relies on pre-signed transactions to appear simultaneously across multiple staking protocols. This method, he said, allows one Bitcoin to be counted multiple times on different platforms, creating the illusion of a higher TVL.

For example, one BTC in SolvBTC can be reported as three BTC when using this method on various platforms.

“Solv Protocol does not lock unique BTC deposits. Instead, it uses pre-signed transactions to ‘delegate’ the same BTC across multiple protocols: 1 BTC in Solv → +1 TVL BTC Same BTC in Bsquared → +1 TVL BTC (repeat) Same BTC in ??? → +1 BTC TVL (repeat) In reality, 1 BTC = 3 BTC fake TVL,” Liu speak.

He also accused the platform of altering TVL data on trackers like DeFiLlama and moving funds allegedly locked in staking contracts. Liu urged users to withdraw their funds and check if their assets are truly protected or are being reused across protocols.

Solv Protocol Responds to Allegations

Eva Binary, Marketing Director of Solv Protocol, refute the allegations, saying they were misleading and baseless. She clarified that Solv’s TVL metrics comply with the standard 15-day staking cycle and are accurately reflected on DeFiLlama.

Binary also claims that TVL fluctuations in specific pools like SolvBTC.BBN are due to a periodic redemption process, denying any TVL manipulation or falsification.

Solv co-founder Ryan Chow echoed this sentiment, accusing competitors of orchestrating a concerted effort to tarnish the platform’s reputation. He also argued that these statements were part of a deliberate campaign to disrupt Solv’s operations and sabotage its partners.

“For months, we have been aware of competitors spreading misinformation to our partners and convincing them ‘don’t work with Solv, work with us instead, [chèn cáo buộc ở trên, nếu không hơn].’ We decided to ignore it and continue with our work. But no more. Don’t be confused. This is a smear campaign, coordinated and organized, and goes to great extents to bring down Solv,” Chow speak.

Solv Protocol specializes in Bitcoin staking and profit generation across multiple blockchain networks. According to DeFiLlama, Solv currently manages approximately $2.5 billion in TVL.

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