Solv Protocol, a popular Bitcoin staking platform, is dealing with claims of inflating its overall worth locked (TVL) figures. Market specialists have actually raised these allegations, which question the platform’s asset-handling practices and the precision of its reported metrics.
The platform’s group has actually highly rejected these allegations, identifying them as unproven and an effort to spread out worry and false information.
Issues Arise Over SolvBTC’s Asset Handling
On January 3, Hanzhi Liu, co-founder of Nubit, accentuated possible abnormalities in Solv Protocol’s operations. Liu declared that blockchain information recommends the platform recycles the exact same Bitcoin throughout numerous procedures rather of locking distinct deposits. This practice, according to Liu, synthetically pumps up Solv’s TVL figures.
Liu discussed that SolvBTC, the platform’s covered Bitcoin property, depends on pre-signed deals to appear in numerous staking procedures at the same time. This approach, he declared, permits one Bitcoin to be counted numerous times throughout various platforms, developing the impression of greater TVL.
One BTC in SolvBTC might be reported as 3 BTC by leveraging this duplication throughout numerous platforms.
“Solv Protocol isn’t locking distinct BTC deposits. Rather, it’s utilizing pre-signed deals to “license” the exact same BTC throughout several procedures: 1 BTC in Solv → +1 TVL BTC Same BTC in Bsquared → +1 TVL BTC (once again) Same BTC in??? → +1 TVL BTC (once again) In truth, 1 BTC = 3 phony TVL BTC,” Liu specified.
He likewise implicated the platform of changing its TVL information on tracking tools like DeFiLlama and moving funds allegedly secured staking agreements. Liu advised users to withdraw their funds from Solv and validate whether their properties are truly protected or being recycled throughout procedures.
Solv Protocol Responds to the Allegations
Eva Binary, Solv Protocol’s Chief Marketing Officer, dismissed the accusations, explaining them as deceptive and unwarranted. She clarified that Solv’s TVL metrics line up with its basic 15-day restaking cycles and are precisely assessed DeFiLlama.
Binary likewise associated TVL variations in particular swimming pools, such as SolvBTC.BBN, to regular redemption procedures, rejecting any control or “3x BTC” inflation.
Ryan Chow, co-founder of Solv, echoed these beliefs, implicating rivals of managing a collaborated effort to stain the platform’s credibility. He likewise argued that these claims belong to an intentional project to interfere with Solv’s operations and weaken its collaborations.
“For months we understand rivals are out there smearing us to our partners and encourage them ‘do not deal with Solv, deal with us rather, [insert accusations above, if not more]’ We have actually up until now picked to disregard and continue doing us. No more. Make no error. This is a negative campaign, collaborated and managed, and going to terrific lengths in effort to take Solv down,” Chow mentioned.
Solv Protocol’s TVL. Source: DeFillama
Solv Protocol focuses on Bitcoin staking and yield generation throughout several blockchain networks. According to DeFiLlama, Solv presently handles around $2.5 billion in TVL.
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