Solv Protocol Dismisses TVL Inflation Claims as ‘Baseless’
Prominent Bitcoin staking platform Solv Protocol is facing accusations of inflating its total value locked (TVL) figures. Industry experts raised the allegations, questioning the platform’s asset handling practices and the accuracy of its reported metrics.
However, the platform team strongly denies the accusations, calling them baseless and an attempt to spread fear and misinformation.
SolvBTC’s asset handling raises concerns
On January 3, Nubit co-founder Liu Hanzhi drew attention to potential violations in Solv Protocol’s operations. Liu claims blockchain data shows the platform recycles the same stuff Bitcoin spans multiple protocols Rather than locking in only one deposit. Liu said this approach artificially inflated Solv’s TVL figures.
Liu explained Solve for BTCplatform Wrapped Bitcoin Assets that rely on pre-signed transactions appearing in multiple staking protocols simultaneously. He claimed that this method allows one Bitcoin to be counted multiple times on different platforms, creating an illusion Higher TVL.
For example, by leveraging this duplication across platforms, 1 BTC in SolvBTC could be reported as 3 BTC.
“The Solv Protocol does not lock unique BTC deposits. Instead, it uses pre-signed transactions to “authorize” the same BTC across multiple protocols: 1 BTC in Solv → +1 TVL BTC The same BTC in Bsquared → +1 TVL BTC (Again) Same BTC in ??? → +1 TVL BTC (Again) Actually, 1 BTC = 3 fake TVL BTC” Liu point out.
He also accused the platform of altering TVL data on monitoring tools such as Defilama and transfer funds allegedly locked in staking contracts. Therefore, Liu urged users to withdraw funds from Solv and verify whether their assets are truly protected or reused across protocols.
Solv Protocol responds to accusations
Eva Binary, Chief Marketing Officer, Solv Protocol, fired claims that the allegations are misleading and baseless. She clarified that Solv’s TVL metric is consistent with its standard 15-day re-staking cycle and is accurately reflected on DeFiLlama.
Binary also attributed the TVL fluctuations of specific mining pools such as SolvBTC.BBN to regular redemption processes, denying any manipulation or “3x BTC” inflation.
Solv co-founder Ryan Chow echoed those sentiments, accusing rivals of orchestrating a coordinated campaign to tarnish the platform’s reputation. He also argued the claims were part of a sabotage campaign. Solv’s operations and undermine its partnerships.
“For months, we have become aware that competitors have been smearing us to our partners and convincing them to ‘Don’t work with Solv, but work with us (insert accusations above, if not more).’ To So far, we have chosen to ignore and continue to do our thing. Make no mistake, this is a coordinated and orchestrated smear campaign, and no effort will be spared to bring down Solv.” point out.
Solv Protocol specializes in Bitcoin Staking and revenue generation across multiple blockchain networks. According to DeFiLlama, Solv currently manages approximately $2.5 billion in TVL.
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