Solv Protocol, known for its Bitcoin staking services, is under scrutiny for allegedly misrepresenting its total value locked (TVL) figures. Hanzhi Liu from Nubit claims the platform recycles the same Bitcoin to inflate its TVL, questioning the integrity of Solv's operations.
According to Liu, Solv uses pre-signed transactions to make one Bitcoin appear across multiple protocols, creating an illusory TVL figure.
His advice? Users should verify their funds' status, citing potential misuses across different platforms.
Solv Protocol counters these accusations strongly. Eva Binary and Ryan Chow from Solv dismiss them as unfounded, labeling them as part of a coordinated smear campaign.
They assert their TVL metrics align with standard restaking cycles, visible on DeFiLlama. Solv attributes any TVL fluctuations to routine processes, denying any manipulation or inflation of figures.
As Cipher Protocol's respondents suggest improvements in transparency, Chow alleges competitors aim to tarnish Solv's reputation by spreading misinformation among Solv's partners.
Solv Protocol currently holds approximately $2.5 billion in TVL, as reported by DeFiLlama.
With accusations flying and denials standing firm, the situation at Solv highlights ongoing challenges in maintaining transparency in the crypto industry's rapidly expanding landscape.
