Solv Protocol, a Bitcoin staking platform, is facing allegations of inflating its total value locked (TVL). Industry experts have made these allegations, questioning the platform's asset management and the accuracy of the reported figures.
However, the platform's team has strongly denied these allegations, calling them baseless and an effort to spread fear and misinformation.
Concerns about SolvBTC's asset management
On 03/01, Hanzhi Liu, co-founder of Nubit, noticed potential irregularities in Solv Protocol's operations. Liu alleged that blockchain data shows the platform is reusing the same Bit on multiple protocols instead of locking up individual deposits. According to Liu, this practice artificially inflates Solv's TVL data.
Liu explained that SolvBTC, the platform's wrapped Bit asset, relies on pre-signed transactions to appear in multiple staking protocols simultaneously. This method, he said, allows a single Bit to be counted multiple times across different platforms, creating an illusion of higher TVL. For example, a Bit in SolvBTC could be reported as three Bits by exploiting this duplication across various platforms.
"Solv Protocol does not lock up unique Bit deposits. Instead, it uses pre-signed transactions to 'delegate' the same Bit across multiple protocols: 1 Bit in Solv → +1 TVL Bit Same Bit in Bsquared → +1 TVL Bit (again) Same Bit in ??? → +1 TVL Bit (again) In reality, 1 Bit = 3 fake TVL Bits,"
Liu stated.
He also accused the platform of altering TVL data on monitoring tools like defillama and moving funds allegedly locked in staking contracts. Therefore, Liu urged users to withdraw their funds from Solv and verify if their assets are genuinely secured or being reused across other protocols.
Solv Protocol responds to the allegations
Eva Binary, the Marketing Director of Solv Protocol, refuted the allegations, describing them as misleading and baseless. She clarified that Solv's TVL figures are consistent with the standard 15-day restaking cycle and accurately reflected on defillama. Binary also attributed the TVL fluctuations in specific pools, such as SolvBTC.BBN, to periodic reward distribution processes, denying any manipulation or "3x Bit" claims.
Ryan Chow, the co-founder of Solv, also echoed these views, accusing competitors of orchestrating a coordinated effort to damage the platform's reputation. He also suggested that these statements are part of a deliberate campaign to undermine Solv's operations and weaken its partner relationships.
"For months, we've known that competitors have been slandering us to our partners and convincing them 'don't work with Solv, work with us, [insert allegations above, if not more].' We've chosen to ignore and continue our work. But no more. Make no mistake. This is a coordinated, organized smear campaign, and it's trying its hardest to take down Solv,"
Chow stated.
Solv Protocol's TVL. Source: defillamaSolv Protocol specializes in Bit staking and generating yields across multiple blockchain networks. According to defillama, Solv currently manages around $2.5 billion in TVL.
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