Solv Protocol, a prominent Bitcoin staking platform, is facing accusations of inflating its total value locked (TVL) figures. Industry experts have made these accusations, questioning the platform’s practices in handling assets and the accuracy of its reported metrics.
However, the platform’s team has strongly denied these allegations, labeling them as baseless and an attempt to spread fear and misinformation.
Concerns arise over SolvBTC’s asset handling
On January 3, Nubit co-founder Hanzhi Liu drew attention to possible irregularities in Solv Protocol’s operations. Liu claimed that blockchain data suggests the platform recycles the same Bitcoin across multiple protocols rather than locking unique deposits. According to Liu, this practice artificially increases Solv’s TVL figures.
Liu explained that SolvBTC, the platform’s Bitcoin asset, relies on pre-signed transactions appearing in multiple staking protocols simultaneously. This method, he claimed, allows one Bitcoin to be counted multiple times on different platforms, creating the illusion of a higher TVL.
For example, one BTC in SolvBTC could be reported as three BTC using this duplication across platforms.
“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 Same BTC in Bsquared → +1 TVL BTC (again) Same BTC in ??? → +1 TVL BTC (again) In reality, 1 BTC = 3 fake TVL BTC,” said Liu.
He also accused the platform of altering TVL data on monitoring tools such as DeFiLlama and moving funds supposedly locked up in staking contracts. Therefore, Liu urged users to withdraw their funds from Solv and verify whether their assets are really secured or recycled through different protocols.
Solv Protocol responds to the accusations
Solv Protocol Chief Marketing Officer Eva Binary dismissed the allegations, describing them as misleading and baseless. She clarified that Solv’s TVL metrics align with standard 15-day readmission cycles and are accurately reflected on DeFiLlama.
Binary also attributed TVL fluctuations in specific pools, such as SolvBTC.BBN, to routine redemption processes, denying any manipulation or “3x BTC” inflation.
Ryan Chow, co-founder of Solv, echoed these sentiments, accusing competitors of orchestrating a coordinated effort to tarnish the platform’s reputation. He also argued that these claims are part of a deliberate campaign to disrupt Solv’s business and undermine its partnerships.
“We have been aware for months that competitors are smearing us to our partners, convincing them ‘don’t work with Solv, work with us instead’. [insert accusations above, if not more].’ So far we have chosen to ignore it and get on with it. But not anymore. Make no mistake. This is a smear campaign, coordinated and orchestrated, that goes to great lengths in an attempt to take down Solv,” Chow said.
TVL from Solv Protocol. Source: DeFillama
Solv Protocol specializes in Bitcoin staking and yield generation across multiple blockchain networks. According to DeFiLlama, Solv currently manages approximately $2.5 billion in TVL.
