Solv's Bitcoin Yield Platform Hacked for $2.7M
A hacker has drained $2.7 million from Solv Protocol's Bitcoin yield platform by exploiting a smart contract vulnerability. The incident serves as a stark reminder of the security risks inherent in DeFi, even on established protocols, as yield-seeking capital continues to flow into the space.
The exploit was highly specific, targeting a "double-minting" vulnerability within a Bitcoin Reserve Offering (BRO) smart contract. Security researchers noted the attacker repeatedly called a function within the contract 22 times, allowing them to inflate an initial balance of 135 BRO tokens into approximately 567 million. These newly created, unbacked tokens were then swapped for 38.05 SolvBTC, the platform's Bitcoin-pegged asset. While the $2.7 million loss is significant, the attack was contained to a single vault and affected fewer than 10 users. Solv Protocol has publicly committed to fully compensating all impacted users for their losses, a move intended to maintain trust within its user base. The protocol's other vaults and user funds remain secure. Solv Protocol operates one of the largest on-chain Bitcoin reserves in DeFi, holding approximately 24,226 BTC with a value exceeding $1.7 billion. This substantial treasury backstops its core function: allowing users to deposit Bitcoin in exchange for SolvBTC, which can then be deployed across various DeFi applications for lending, borrowing, and staking. In response to the breach, Solv has engaged multiple blockchain security firms, including Hypernative Labs, SlowMist, and CertiK, to conduct a full investigation and audit its smart contracts. The team has also offered the hacker a 10% "white-hat" bounty for the return of the stolen assets, a common strategy in DeFi to negotiate the recovery of funds.
