Bitcoin-based staking platform Solv has been accused of manipulating its total value locked (TVL). According to the co-founder of Nubit Lianchuang Hans on X, the protocol has been recycling its user deposits, putting Solv at the heart of the controversy.
According to Hans, Solv uses the same assets on several protocols, allowing it to manipulate its TVL on DefiLlama. He also accused the platform of not locking its BTC deposits like it claims. After his lengthy rant, he urged Solv users to withdraw their assets from the platform, noting that they could lose assets.
Solv faces multiple accusations from crypto personalities
Hans, in his post, noted that the platform uses pre-signed transactions to authorize the same Bitcoin across multiple protocols. “Solv Protocol isn’t locking unique BTC deposits. Instead, it’s using pre-signed transactions to “authorize” the same BTC across multiple protocols,” he said.
Solv is backed by Binance, which has caused the DeFi project to attract positive attention over the past months. The protocol is also set to launch its airdrop after Binance announced it as part of its Binance mega drop launchpad. It has also secured a listing on the spot exchange Hyperliquid.
Hans’ allegation is not the first against Solv, as a Bitcoin whale claimed that it entered an agreement with the protocol to use 1,800 BTC as reserve assets for SolvBTC, while she remained in control of her assets. Lombard finance co-founder Jacob Phillips also raised an alarm, with users saying he was referring to Solv. He mentioned that some protocols lost part of their TVL and did not use the Babylon cap3 staking window.
Hans mentioned this allegation, noting that Solv recently moved some BTC from one of its addresses. He noted that the moved BTC should have been staked on Babylon protocol. Hans also told the Solv team to publish its information clearly in the public domain instead of trying to contact him privately. He wants the protocol to provide transparent information about its assets, reserves, and staked assets.
Solv team calls the allegations a smear campaign
Solv Protocol had responded to the allegations, calling it baseless and a ploy to destabilize the project. The protocol’s co-founder Ryan Chow published an article where he dismissed Hans’ allegations. Chow noted that Solv operates different Bitcoin liquid staking tokens, and Hsns’ evidence of Bitcoin being moved is mistaken.
The Solv team has said it will take legal action against Hans if he does not retract his statement. The protocol also said it believes it is a smear campaign towards the company as it prepares to launch its token. According to Chow, Solv had been in the crypto industry for about four years, managing to go two full cycles without any issues.
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