Bitcoin’s Solv Protocol platform has become the subject of controversy after accusations emerged that it was manipulating its total value locked (TVL). Lianchuang Hans, co-founder of Nubit, claimed on X that the protocol recycles users’ deposits.
According to Hans, Solv uses the same assets in multiple protocols and manipulates its TVL on Defillama. He claimed that the platform does not insure BTC deposits as it claims. Following his accusations, Hans called on Solv users to withdraw their assets from the protocol as they could lose their assets.
Han He said:
“The Solv protocol does not secure unique BTC deposits. Instead, it uses pre-signed transactions to ‘authorize’ the same bitcoin across multiple protocols.”
Solv is a Binance-backed DeFi project on Bitcoin that has attracted positive attention in recent months. It is scheduled to drop on Binance this year after the exchange announced that it is the third project on the Binance Megadrop launchpad. The protocol has also received a potential listing on the Hyperliquid spot exchange.
Solv is facing multiple allegations from different quarters
Hahn’s allegation is not the first time Solve has come under public scrutiny in recent days. Just a few days ago, a Bitcoin whale claimed that she had a private agreement with the Solv Protocol to use 1,800 BTC as reserve assets for SolvBTC even though the Bitcoin remained under her control.
Before that, Lombard Finance co-founder Jacob Philipp also raised concerns about the Solv protocol two weeks ago. Although he did not mention the project specifically, he claimed that some liquid staking protocols lost part of their TVL value and did not stake during the Babylon Cap3 staking window.
Hans pointed out this claim as well, noting that cross-chain transactions show that Solv recently transferred bitcoin from one of its addresses. This Bitcoin was supposed to be placed on the Babel Protocol.
Meanwhile, Hans called on the Solv team to stop trying to organize a private meeting and to publicly clarify information about its operations by providing users with transparency about its portfolios, reserves and pledged assets.
The Solv Protocol team rejects these allegations as a smear campaign
The Solv Protocol team responded to these allegations, calling them malicious, baseless, and aimed at destabilizing the project.
Solve Co-Founder Ryan Chow He published an article on X where he debunked all the allegations raised by Hans. According to Chow, Solv runs multiple Bitcoin liquid storage tokens (LSTs), and the memory link posted by Hans as evidence of Solv moving Bitcoin is misleading. He explained that the BTC was not for the SolvBTC.BBN betting Babel product, but for the SolvBTC.CORE product.
Zhao also explained the reason for the decrease in TVL and the alleged changes to TVL on Defillama. He noted that the redemption of SolvBTC.BBN began on the same day as the Babylon Cap3 IPO, and that TVL updates on Defillama are a standard procedure that occurs every two weeks.
books:
“Solv officially began redeeming SolvBTC.BBN on the same day. It is completely normal for the TVL to change, highlighting the liquidity and flexibility SolvBTC.BBN provides to users.”
Solve Team She threatened to take legal action against Hans if he does not retract the accusations, which she believes is a calculated smear campaign aimed at derailing the token launch. Solv has been around for four years and has gone through two cycles without any issues, Zhao noted.
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