Solv Protocol dismisses TVL inflation as ‘baseless’.

Solov Protocol, a popular Bitcoin staking platform, has been accused of inflating Total Value Locked (TVL) figures. Industry experts have raised these allegations, which call into question the platform's asset management practices and the accuracy of reported metrics.

However, the forum team has strongly denied these allegations, terming them as baseless and an attempt to spread fear and misinformation.

It has raised concerns about SolvBTC's asset management.

On January 3rd, Nubit founder Hanzhi Liu drew attention to potential breaches in Solv protocol operations. According to Liu, blockchain data indicates that instead of locking a specific deposit, the platform uses the same bitcoin across multiple protocols. This practice, according to Liu, artificially inflates Solv's TVL figures.

Liu explained that SolvBTC, the platform's rolled-up bitcoin asset, appears in multiple staking protocols simultaneously on pre-signed transactions. This method allows one bitcoin to be counted multiple times on different platforms, creating the illusion of a high TVL.

For example, one BTC in SolvBTC may be reported as three BTC using this multiple on various platforms.

Solv Protocol does not lock specific BTC deposits. Instead, it is “allowing” the same BTC across multiple protocols using pre-signed transactions: 1 BTC in Solv → +1 TVL BTC same BTC in Bsquared → +1 TVL BTC (again) same BTC in ??? → +1 TVL BTC (again) Actually, 1 BTC = 3 fake TVL BTC,” Liu said.

They accused the platform of altering the TVL data on monitoring tools like DeFillama and moving funds allegedly locked up in contracts. Therefore, Liu urged users to withdraw their funds from Solv and ensure that their assets are protected authentically or reused in protocols.

Solv protocol responds to the problems

Solov Protocol Chief Marketing Officer Eva Binari denied the allegations, calling them false and baseless. She explained that Solv's TVL metrics are consistent with standard 15-day reset cycles and are reflected accurately on DeFillama.

Binary also attributed TVL fluctuations to certain pools such as SolvBTC.BBN due to regular redemption procedures, denying any fraud or “3x BTC” inflation.

Solve founder Ryan Chow echoed those comments, accusing competitors of a concerted effort to tarnish the platform's reputation. He further argued that these claims were part of a deliberate campaign to disrupt Solv's operations and destroy their partnership.

For months, our competitors have been smearing our partners, saying ‘Don't work with Solve, work with us instead. [insert accusations above, if not more]. We have so far chosen to ignore it and still do. But nothing more. Don't get me wrong. This defamation campaign is orchestrated and orchestrated and will go a long way to bring Solv down,” Chow said.

The Solv protocol is focused on Bitcoin staking and production across multiple blockchain networks. According to DeFillama, Solv currently manages approximately $2.5 billion in TVL.