olv Protocol, a staking platform in the Bitcoin ecosystem, is under scrutiny for allegedly inflating its total value locked (TVL) numbers. The allegations came from Hanzhi Liu, co-founder of Nubit, who claims Solv misrepresents the real state of its asset management in a way capable of deceiving investors. On its part, the platform strongly denied the allegations, asserting that these are nothing but a systematic smear campaign by market competitors.
Allegations of TVL Inflation
Hanzhi Liu has accused Solv Protocol of lying with regard to its Bitcoin staking numbers, claiming that they are creating pre-signed transactions in order to inflate their TVL numbers. Liu said it allows Solv to treat the same Bitcoin as pledges for a number of protocols so their TVL looks higher.
Lui said "Solv Protocol isn’t locking unique BTC deposits. Instead, it’s using pre-signed transactions to “authorize” the same BTC across multiple protocols." He added that the system would show 3 BTC as opposed to just one. According to him, this data manipulation lowers the credibility of the site and is risky for the users.
Solv Protocol response.
Eva Binary, Chief Marketing Officer at Solv Protocol, called the allegations by Liu false and based on biased assumptions. She explained that Solv's TVL metrics are matched to its 15-day restaking cycles and are correctly reported on tracking sites like DeFiLlama. According to Binary, normal redemption processes, not manipulation, can be attributed to TVL fluctuations.
Founder and president Ryan Chow echoed Binary's comments, saying the claims are an organized attempt at ruining Solv's image. He said competitors are trying to cause problems with Solv in its operations and partnerships by disseminating false information. Chow went on to say, "For months we are aware competitors are out there smearing us to our partners and persuade them ‘don’t work with Solv, work with us instead"
Solv Protocol still does its thing as a Bitcoin staking venue with a total value locked of approximately $2.46 billion, data from DeFiLlama shows. This venue that works to generate yields across various blockchain platforms has empowered exponential growth across the crypto space.
