A user named @Clarissexx0805 posted on X after being silent for half a year, claiming rights protection. She stated that in the early stages, she had promised to provide liquidity of 1,800 bitcoins to Solv Protocol, but when the TGE arrived, the protocol party did not provide the promised compensation. This article also sparked discussions in the Chinese community, and responses from Solv founder Meng Yan also drew heated discussions. @Clarissexx0805 took advantage of this attention to launch a rights protection AI agent on the Base chain and publicly issued coins. At the same time, Binance announced that Solv Protocol would be listed on Megadrop.
Early large holders and protocol parties' profit distribution has sparked controversy.
At the beginning of the post, many thought that the user had encountered a Rug, as 1,800 bitcoins is not a small number (calculated at the current price of 100,000, that's about 180 million USD). Some gradually ruled out confirming that the protocol mentioned in the article was Solv Protocol. But it was later discovered that the 1,800 bitcoins did not disappear; more specifically, the user had agreed on compensation with the protocol party early on, and the user would provide 1,800 bitcoins to enhance the TVL (Total Value Locked) figure.
Afterwards, everyone turned their attention to how the 1,800 bitcoins came about. Some believed that the user was more likely responsible for operating the wallet on behalf of someone else, and that there might actually be a backer providing funds or raising bitcoins from multiple people. Some users tracked the user's address, which was later confirmed by the user. On-chain data revealed that the address had staked M-BTC multiple times on the Merlin chain since March to obtain solvBTC, which is currently the most matching address.
Another point of contention is that the address still actually held 1,800 bitcoins at the time; why could it be included in the TVL? Some pointed out the common practice of false TVL strategies in BTCfi, and there were also claims that the address holder only signed a commitment and was thus included in the TVL. These TVLs essentially cannot provide liquidity and are therefore regarded as false TVL. However, the operations on Merlin are quite reasonable, as solvBTC is essentially a liquidity staking token, with M-BTC exchanging for solvBTC at a 1:1 ratio.
Nubit co-founder fired back, sparking a debate in the BTCfi community.
After the incident escalated, another co-founder of the BTCfi protocol, @trackoor, also came forward to criticize, using "1 solvBTC ≠ 1 BTC" as the title to FUD Solv Protocol. He pointed out that Solv Protocol uses pre-signed transactions to authorize the same bitcoins across multiple protocols. When users stake 1 bitcoin in Solv Protocol, this TVL is also counted in Bsquared and other protocols, resulting in 1 bitcoin creating a false TVL of 3 bitcoins.
He reiterated that users need to extract their bitcoins from Solv as soon as possible, as this is similar to FTX, targeting the slowest runners. He also quoted a post from Jacob Phillips, co-founder of another bitcoin staking protocol, Lombard, pointing out that "in the Cap3 staking window of Babylon, certain LSTs did not stake most of the bitcoins and even lost TV this week." However, there are also conspiracy theories suggesting that Nubit and Lombard are both part of Polychain's investment positions, but the strange point is that Babylon, which has a partnership with Solv, is also a Polychain investment position.
Meng Yan's words and actions sparked discussions, and rights-protecting users have leveraged the momentum to issue coins.
On January 5, Slow Mist founder Yu Xian posted that Solv Protocol's official Twitter was hacked, but co-founder Meng Yan's words and actions also sparked heated discussions. At the time, he casually stated that the hacker's post was merely boastful and threatening. Some people believe that such remarks from a co-founder are inappropriate and should take cybersecurity issues more seriously. Meng Yan retorted that some people were out of their minds, but he also spoke up for himself, stating that his usual way of speaking is like this, and the team has been solving problems without affecting anything.
On the night of the 6th, an external case emerged. @Clarissexx0805 directly released a "Rights Protection AI Agent" ZaiXBT and issued coins on the Base chain. Some even joked that the farce was finally coming to an end, with many predicting she would take advantage of this momentum to issue coins.
Binance Megadrop, stake 0.0001 BTC to achieve a leap in points
Binance also officially announced on the afternoon of the 6th that Solv Protocol would be listed on Megadrop. In addition to locking $BNB, tokens can also be obtained by completing Web3 tasks. By staking 0.0001 BTCB on the Solv Protocol on the BNB chain, users can increase their Megadrop points by 1.5 times and receive an additional 500 points. Interestingly, SOLV had previously spent heavily to secure the listing rights for Hyperliquid spot trading, which will have its TGE on the 17th.
For a specific introduction to the operational mechanism of Solv, refer to this article. The source of income primarily comes from the official airdrop tokens for staking bitcoins to exchange for solvBTC, but it is also possible to use solvBTC to participate in the staking of partner protocols. The protagonist of this article is partly due to only staking bitcoins, and in subsequent updates, putting solvBTC into partner protocols can earn more points, thereby diluting its benefits. Income from investing in stablecoins includes fee arbitrage, airdrop rewards, etc.
Solv will subsequently reinvest protocol income into bitcoins to become a chain on micro strategies. In the previous introduction to the Soneium ecosystem, it was mentioned that Sake Finance could leverage Solv by 9 times, which may become a highlight in the bull market.
This article is reprinted with permission from: (Chain News)
'Chain on Micro Strategy Solv Controversy! BTC Rights Protection Large Holders Taking Advantage to Issue Coins Sparks Controversy, Net: The Farce is Over' This article was first published in 'Crypto City'
